In-Depth Analysis of Yonghui Supermarket's Capital Operations and 'Pangai' (Pangdonglai Model) Transformation

Based on the latest searched information, I will provide you with an in-depth analysis of these two major capital operations of Yonghui Supermarket:

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On December 29, 2025, Yonghui Supermarket (601933.SH) issued an announcement, planning to publicly list and transfer 28.095% equity of its participating subsidiary

through the Chongqing United Assets and Equity Exchange. The transfer price for this transaction is calculated based on the unaudited net assets of Yunjin Technology of RMB 632 million as of November 30, 2025, in proportion to the shareholding ratio, with an initial listing reserve price of [1][2].

On July 30, 2025, Yonghui Supermarket released the draft plan for the 2025 issuance of A-shares to specific targets, planning to issue shares to no more than 35 specific investors, with a total fundraising amount of

[3][4]. The uses of the raised funds include:

• Store Upgrade and Renovation Project
  : RMB 3.213 billion, for the transformation and upgrade of 298 stores in the ‘Pangdonglai Model’
• Logistics and Warehouse Upgrade and Renovation Project
  : RMB 309 million, for expanding cold chain storage facilities
• Supplementary Working Capital or Repayment of Bank Loans
  : RMB 470 million [4]

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Item	Data
Target Company	Yonghui Yunjin Technology Co., Ltd.
Transferred Equity Ratio	28.095%
Initial Listing Reserve Price	RMB 178 million
Net Assets of Target Company (as of November 30, 2025)	RMB 632 million
Transfer Method	Public Listing Transaction

. In recent years, Yonghui Supermarket has been mired in losses, with a cumulative loss of over RMB 9 billion from 2021 to 2024 [5]. Against this backdrop, the company’s decision to sell non-core assets to recoup funds reflects the management’s strategic intention to focus on its retail core business and optimize its asset structure.

. As of March 31, 2025, Yonghui Supermarket’s total liabilities reached RMB 34.9 billion, with an asset-liability ratio as high as 88.73% [3]. Although the RMB 178 million obtained from the sale of Yunjin’s equity is limited in amount, it will help improve cash flow and support investment in the transformation of core businesses.

. As a fintech subsidiary, Yonghui Yunjin has limited synergy with Yonghui Supermarket’s core retail business. Amid pressure on its retail core business, divesting non-core assets helps the company concentrate resources to advance the ‘Pangai (Pangdonglai Model) Transformation’ strategy.

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Time Node	Number of Transformed Stores	Cumulative Change
End of 2024	Approximately 50	-
June 2025	Over 100	+50+ new stores
July 30, 2025	146	+46 new stores
End of September 2025	Approximately 200 (target)	-
January 9, 2026	Exceeded 300 [6]	+100+ new stores

:

• End of 2024: 775 stores
• End of Q3 2025:
  450 stores
  , a decrease of 325 [6]

:

• Average passenger flow of transformed stores increased by
  over 80%
  [5]
• Profitability of some transformed stores recovered
• The single-quarter gross profit margin in Q3 2025 rose to
  19.84%
  , an improvement compared to previous periods [7]
• Inventory balance dropped to RMB 3.732 billion, a
  47.1% decrease
  from the end of last year [7]

:

• In the first three quarters of 2025, operating revenue was RMB 42.434 billion,
  a year-on-year decrease of 22.21%
  [5]
• Net loss attributable to parent company was RMB 710 million,
  a year-on-year expansion of over 8 times
  [5]
• Costs and expenses such as compensation, commodity clearance, and asset scrapping arising from transformation and store closures have significantly eroded profits

Pangdonglai’s sales in 2025 reached

, a compared to 2024 [5]. The core elements of its successful model include:

Core Element	Specific Performance
Regional Deep Cultivation Strategy	Stores are concentrated in regions such as Xuchang and Xinxiang, with a total of less than 20 stores
High Single-Store Efficiency	The annual sales of Xuchang Times Square Store is approximately RMB 6 billion; the average annual revenue per store exceeds RMB 1.4 billion
Bare-Price Direct Sourcing Model	Optimize product structure, compress intermediate links, and win customer trust with high cost-effective products
High Employee Benefits	High salaries stimulate service enthusiasm, forming a positive cycle of “employee satisfaction - service improvement - customer loyalty”

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Indicator	Yonghui Supermarket	Pangdonglai
Number of Stores (Q3 2025)	450	Less than 20
Estimated Average Annual Revenue per Store	Approximately RMB 100 million	Approximately RMB 1.4 billion
Efficiency Gap	-	Pangdonglai’s efficiency is nearly 10 times that of Yonghui

:
The Pangdonglai model is essentially a strategy of , emphasizing the ultimate pursuit of single-store efficiency and customer experience. As a national chain enterprise, Yonghui Supermarket has a scale of over 700 stores, with complex supply chains and high management costs. When the ‘Pangdonglai Model’ meets ‘Yonghui’s Scale’, how to achieve scaled benefits from sample reference is a fundamental challenge [3].

The traditional supermarket profit model relies on “low-price fresh produce to attract traffic + collecting back-end fees from suppliers”, while Pangdonglai implements the strategy of “bare-price and back-end fee control”. The core problems faced during the transformation include:

1. Short-Term Gross Profit Margin Decline
   : During the process of eliminating old products and introducing new products, the active promotion of the bare-price and back-end fee control strategy puts short-term pressure on gross profit margin
2. New Profit Model Not Yet Formed
   : The old profit model has been broken, while the new profit system centered on commodity gross profit and service value has not yet been established
3. Cash Flow Pressure
   : It poses a great test to the company’s cash flow

:

• Total Liabilities: RMB 34.9 billion (as of March 31, 2025)
• Asset-Liability Ratio:
  88.73%
  , far higher than the industry average of 62.86% [3]
• Gross Profit Margin: 20.46%, lower than the industry median of 23.30%

:
Of the RMB 3.992 billion raised in this private placement, only RMB 470 million is used for supplementary working capital. Against the background of the current high asset-liability ratio, the company’s financial flexibility is still limited. If the effect of the ‘Pangai’ transformation is not as expected, the company may face the risk of a tight capital chain.

The success of Pangdonglai lies not only in its business model, but also in its unique corporate culture — dual respect for employees and consumers, building a high-stickiness value community. If Yonghui Supermarket only imitates the superficial service and product structure, but fails to touch the deep-seated reform of organizational culture, the effect of transformation may be greatly reduced [5].

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Soochow Securities stated in its research report [4]:

Forecast Indicator	2024A	2025E	2026E	2027E
Total Operating Revenue (RMB 100 million)	6757.4	5351.4	6499.6	7176.5
Net Profit Attributable to Parent Company (RMB 100 million)	-146.5	-86.6	44.1	109.4
Year-on-Year Growth (%)	-	40.93	150.91	148.28

: Overweight (Maintained)

: It is expected that after the company accelerates transformation and closes long-tail stores, its medium- and long-term performance will gradually recover. After the promotion of transformed stores and the closure of long-tail stores, the company’s long-term performance is expected to show good elasticity.

: The progress of store transformation is lower than expected; store closure and transformation expenses lead to losses; there are still uncertainties in the approval and progress of the private placement.

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Dimension	Assessment	Explanation
Sale of Yunjin’s Equity	Positive	Recoup funds to focus on core business, with clear strategic intention
RMB 4 Billion Private Placement	Neutral to Cautious	Capital support is in place, but the effect of transformation remains to be verified
Copying the Pangdonglai Model	High Risk	Prominent contradiction between scale and quality, continuous growing pains of profit model transformation
Short-Term Performance	Under Pressure	Expected to record a loss in 2025, transformation pains will continue
Medium- and Long-Term Prospects	To Be Observed	Expected to stabilize after transformation is completed, but needs time to verify

• End of 2026 Transformation
  : The company expects the transformation to enter the final stage, and the number of operating stores will basically maintain the level at the end of 2025
• Mid-2026
  : Target to complete the transformation of all stores
• 2026 and Beyond
  : It is expected that the overall operation will maintain a steady growth trend

Yonghui Supermarket’s ‘Pangai’ (Pangdonglai Model) transformation is a high-stakes bet, and its success depends on the following key factors:

1. Whether it can truly establish a profit model centered on commodity gross profit and service value
2. Whether it can find a balance between scale expansion and quality assurance
3. Whether it can maintain sufficient cash flow during the transformation pain period
4. Whether it can truly reshape the organizational culture and realize the transformation from “traffic thinking” to “value thinking”

From the current situation, Yonghui Supermarket’s ‘Pangai’ transformation is still in a

. The radical transformation strategy has brought significant short-term pains, but it has also laid a foundation for medium- and long-term development. Investors need to closely monitor core indicators such as passenger flow conversion rate of transformed stores, same-store sales growth, and profitability improvement, and carefully evaluate the transformation progress.

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[1] Securities Times - Yonghui Supermarket: Plans to Publicly List and Transfer 28.095% of Yunjin Technology’s Equity (https://www.stcn.com/article/detail/3562785.html)

[2] Sina Finance - Plans to Publicly List and Sell 28.095% of the Equity of Participating Subsidiary Yonghui Yunjin Technology (https://finance.sina.com.cn/jjxw/2025-12-29/doc-inheneyk7782466.shtml)

[3] Securities Times - Pre-loss of RMB 240 million in the first half of the year, Yonghui Supermarket “doubles down” with RMB 4 billion to firmly promote “Pangai” transformation (https://www.stcn.com/article/detail/3142644.html)

[4] Dongfang Fortune Securities Research Report - Yonghui Supermarket (601933) Plans to Raise RMB 4 Billion via Private Placement (https://pdf.dfcfw.com/pdf/H3_AP202507301718559229_1.PDF)

[5] Dazhong Network Poster News - Mass Finance | Yonghui’s “Pangai” Delivers a Pre-Loss Result! Is It Transformation Pain or Failed Imitation? (https://www.dzwww.com/xinwen/jjxw/202601/t20260114_17303720.htm)

[6] The Cover News - Yonghui Supermarket’s Transformation Will Enter the Final Stage, and the Scale of Transformed Stores Exceeds 300 (https://www.thecover.cn/news//b93cw5dey%2BH90qSdq8Jkw==)

[7] Yangcheng Evening News - Yonghui Supermarket’s Imitation of Pangdonglai Fails to Stop Continuous Losses in 20 Months, While Profitability of Some Transformed Stores Recovers (https://news.ycwb.com/ikimvkjtjh/content_53905685.htm)