Yonghui Superstores Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Yonghui Superstores Co., Ltd.

Yonghui Superstores Co., Ltd. was founded in 1995 by Xu Lijun in Fuzhou, Fujian Province, China. Initially starting as a small supermarket, the company experienced rapid growth, leveraging its model of offering fresh food and high-quality products to attract consumers. As of 2022, Yonghui had expanded to over 1,000 stores nationwide, positioning itself as one of China's leading supermarket chains.

In 2015, Yonghui went public on the Shenzhen Stock Exchange, raising approximately 4.9 billion yuan (around 740 million USD) through its IPO. The initial public offering significantly boosted the company’s capital and allowed for further expansion into new regions and the integration of advanced technologies in its operations.

Yonghui's revenue has shown consistent growth, with reported figures of 149.4 billion yuan (approximately 22.5 billion USD) for the fiscal year 2021, marking a year-over-year increase of 11.8%. The company’s net profit for 2021 reached 4.33 billion yuan (around 665 million USD), reflecting a net profit margin of approximately 2.9%.

In 2022, Yonghui Superstores recorded total revenue of 160.5 billion yuan (approximately 24.4 billion USD), coupled with a net profit of 4.5 billion yuan (around 690 million USD). The company is known for its innovative approach to retail, incorporating advanced technologies such as big data and artificial intelligence to enhance customer experience and operational efficiency.

In terms of market strategy, Yonghui has made significant investments in online retailing, especially after the COVID-19 pandemic accelerated the digital transformation in the retail sector. The company reported that its online sales accounted for more than 10% of total sales by the end of 2022, reflecting a growing trend towards e-commerce.

Furthermore, Yonghui has partnered with various local and international suppliers to enhance its supply chain, focusing on the sourcing of fresh and organic products. As a result, consumer demand for healthy food options has positioned the brand favorably within the competitive landscape of the Chinese retail market.

As of mid-2023, the stock performance of Yonghui Superstores has been closely monitored. The share price has fluctuated, with a reported range of 15.00 to 22.00 yuan per share over the last year. Analysts remain optimistic about the company's growth prospects, citing strong fundamentals and expansion plans.

A Who Owns Yonghui Superstores Co., Ltd.

Yonghui Superstores Co., Ltd. is a prominent retail and supermarket operator in China, specializing in providing a wide range of consumer goods. As of the latest data, the company's ownership structure is characterized by a mix of institutional and individual shareholders.

The largest shareholder of Yonghui is its founder, Yonghui Xiong, who holds approximately 27.39% of the shares. This substantial ownership stake enables him to exert significant influence over the company's strategic decisions.

In addition to the founder, institutional investors play a critical role in the company's ownership. Notable institutional shareholders include:

As of the latest reporting period, retail investors hold the remaining shares, constituting about 57.33% of the company's total equity. The wide distribution of shares among retail investors reflects a diverse ownership base, providing a blend of perspectives on company performance and governance.

In financial terms, Yonghui Superstores has shown impressive growth, reporting a revenue of approximately RMB 93.2 billion in the latest fiscal year, with a net profit margin of 2.5%. This demonstrates the company's ability to maintain profitability amid fierce competition in the Chinese retail market.

The company has also shown a consistent increase in its number of stores, reaching over 1,200 locations across various provinces in China by the end of 2022. This expansion has been instrumental in enhancing its market presence and customer outreach.

Based on recent trading performance, Yonghui's stock price stood at approximately RMB 10.85 as of October 2023, reflecting a market capitalization of around RMB 45.6 billion. The stock has seen fluctuations, with a high of RMB 12.50 in mid-2023 and a low of RMB 8.90 earlier in the year, illustrating the volatility in the retail sector.

The ongoing development in e-commerce and digital strategies has placed Yonghui in a competitive position, establishing partnerships with various online platforms to enhance its distribution and sales capabilities. As of the latest updates, online sales accounted for approximately 15% of total sales, indicating a growing shift towards digital consumer engagement.

Yonghui Superstores Co., Ltd. Mission Statement

Yonghui Superstores Co., Ltd. is a leading Chinese supermarket chain focusing on providing high-quality products and excellent customer service. The company's mission statement emphasizes their commitment to "sustainably providing fresh food and high-quality services to customers." This mission reflects their ambition to combine traditional retail practices with modern concepts, focusing on fresh produce and a diverse selection of products.

As of 2023, Yonghui operates over 1,500 stores across various formats, including hypermarkets and convenience stores. This extensive network enables them to cater to a broad demographic and enhance their market presence in China's competitive retail landscape.

Yonghui's focus on fresh food is demonstrated in their supply chain strategy, which sources products directly from farms to ensure quality and freshness. The company has established partnerships with numerous local and international suppliers, ensuring that they can deliver to customers consistently. In 2022, Yonghui reported a revenue of approximately RMB 100.2 billion (around USD 14.8 billion), indicating a robust growth trajectory within the retail sector.

In 2022, Yonghui also reported a same-store sales growth rate of 8.5%, which highlights their successful strategies in enhancing customer experiences and optimizing product offerings. The company's investments in technology and digitalization have fueled this growth, allowing them to better understand consumer behavior and preferences.

Furthermore, Yonghui aims to innovate continuously in the retail space, integrating online and offline shopping experiences. Their e-commerce platform, alongside collaboration with platforms such as Alibaba, has significantly boosted online sales, contributing to a revenue increase of over 30% year-over-year in their online division during the last fiscal year.

The commitment to sustainability is another crucial aspect of Yonghui's mission. The company has implemented various green initiatives, including reducing plastic usage in stores and launching campaigns to promote local produce. In 2023, Yonghui reported a reduction of 15% in carbon emissions from its operations, reinforcing its dedication to environmental responsibility.

Yonghui’s strategic initiatives, supplemented by financial robustness and growth, paint a clear picture of a company focused on meeting the evolving demands of consumers while maintaining ethical business practices.

How Yonghui Superstores Co., Ltd. Works

Yonghui Superstores Co., Ltd. is one of China's leading retail companies, specializing in supermarket operations. As of 2023, the company operates over 1,000 stores across various formats, including hypermarkets, supermarkets, and community stores. The company's headquarters is located in Fuzhou, Fujian Province.

The company's revenue for the fiscal year 2022 reached approximately RMB 126.71 billion (about USD 19 billion), reflecting a year-over-year growth of 8.2%. In the first half of 2023, Yonghui's revenue was reported at RMB 68.93 billion, a slight increase from RMB 66.70 billion in the same period of 2022.

Yonghui's business model emphasizes fresh food and quality service. About 60% of its sales come from fresh food categories, including meat, seafood, fruits, and vegetables. The company has built partnerships with various suppliers to ensure quality and supply chain efficiency.

In the competitive landscape of the Chinese retail market, Yonghui differentiates itself with a focus on customer experience. The company has implemented advanced technologies in its operations, including an intelligent inventory management system and data analytics to optimize stock levels and reduce waste.

Yonghui also emphasizes its digital transformation strategy. The company launched its online shopping platform, which contributed to a reported increase of 35% in online sales in 2022 compared to 2021. This move aligns with the growing trend of e-commerce in China and aims to cater to a younger, tech-savvy demographic.

As a public company listed on the Shenzhen Stock Exchange, Yonghui Superstores has maintained a stable market capitalization around RMB 100 billion (approximately USD 15 billion) as of mid-2023. The stock has shown resilience despite market fluctuations, reflecting strong investor confidence.

Furthermore, Yonghui's expansion strategy includes opening new stores in third and fourth-tier cities, targeting regions with less retail saturation. The company plans to open more than 100 new locations in 2023, with a focus on enhancing its footprint in interior China.

In terms of workforce, Yonghui employs approximately 150,000 people across its operations. The company invests in employee training and development, striving to enhance customer service and operational efficiency.

Yonghui's supply chain effectiveness has also been a key driver of its growth, leveraging logistics centers strategically located to ensure timely delivery of goods to stores, reducing lead times and optimizing inventory turnover.

Overall, Yonghui Superstores Co., Ltd. continues to adapt to market trends, focusing on freshness, customer experience, and digital integration to sustain its position in the highly competitive retail landscape of China.

How Yonghui Superstores Co., Ltd. Makes Money

Yonghui Superstores Co., Ltd., a leading retail chain in China, generates revenue through various channels, primarily through the sale of groceries and fresh produce, as well as non-food items. As of the fiscal year 2022, Yonghui reported an operating revenue of approximately RMB 119.5 billion, reflecting a year-on-year growth of 5.2%.

The company operates supermarkets, hypermarkets, and convenience stores, with a strong emphasis on fresh food, including vegetables, fruits, and meat products. In 2022, fresh food sales accounted for about 55% of Yonghui's total revenue. This focus on fresh produce is supported by their direct sourcing from farms and local suppliers, ensuring quality and cost control.

In addition to traditional retail, Yonghui has embraced e-commerce as an essential channel for growth. As of the end of 2022, online sales contributed approximately 20% to total revenue, with investments in logistics and technology enhancing their e-commerce capabilities. The integration of online and offline shopping experiences, known as "O2O," has been crucial for customer engagement.

Yonghui also benefits from its membership program, which boasts over 30 million active members. This program drives customer loyalty and repeat purchases, with members accounting for around 60% of total sales. The company has leveraged data analytics to personalize promotions and enhance customer experience based on shopping behavior.

To further diversify its revenue streams, Yonghui has expanded into private label products. These offerings, which include fresh food and grocery items, now represent approximately 25% of total sales. By controlling the supply chain and offering competitive pricing, Yonghui can improve profit margins significantly.

The company's geographical expansion strategy has also played a vital role in revenue growth. Yonghui operated over 1,000 stores across 30 provinces in China by the end of 2022, representing an increase of 100 new stores compared to the previous year. This expansion strategy is not only opening new revenue streams but also increasing brand recognition.

In summary, Yonghui Superstores Co., Ltd. leverages a multi-channel approach to optimize sales across fresh food, grocery products, non-food items, and e-commerce. With a strong focus on customer engagement and geographic expansion, the company is well-positioned for continued growth in the competitive retail landscape.