Yuyuan Group faces triple pressures with rare losses of 4.9 billion, financial expenses of 1.66B, closing 785 stores in one year to reduce burdens

Yangtze Business Daily report ●Yangtze Business Daily reporter Shen Yourong

One of the “Old Eight Stocks” in the A-share market, Yuyuan Co., Ltd. (600655.SH), has turned in a surprisingly unusual set of financial results.

On the evening of March 23, Yuyuan Co., Ltd. released its 2025 annual report as scheduled. In that year, the company recorded operating revenue of 36.37B yuan, down 22.49% year over year; net profit attributable to shareholders was -4.9B yuan, down 4009.26% year over year.

The predecessor of Yuyuan Co., Ltd. was Yuyuan Mall, which listed on the Shanghai Stock Exchange in 1992. In 2025, it marked the first annual loss in the 34-year history since Yuyuan Co., Ltd.’s listing.

This rare annual loss at Yuyuan Co., Ltd. was mainly driven by three factors working together: intensified volatility in international gold prices, reduced investment gains from disposing of non-core asset projects, and asset impairment charges for some real estate projects.

In 2025, the combined total of Yuyuan Co., Ltd.’s investment net gains and asset impairment losses (including credit impairment losses) was -3.1B yuan.

Yuyuan Co., Ltd. faced substantial financial pressure. By the end of 2025, the company’s asset-liability ratio was 71.23%, and in that year its finance costs were 1.66B yuan.

In 2025, Yuyuan Co., Ltd. carried out “zero dividend.” However, the company had already spent 177 million yuan to repurchase shares in the secondary market for cancellation.

In light of the current situation, Yuyuan Co., Ltd.’s measures are to continue downsizing and strengthening its operations. In 2025, the company closed a total of 785 stores, including jewelry and watch-related outlets.

First annual loss in 34 years after listing

Over its 34-year listing history, Yuyuan Co., Ltd. has experienced its first annual loss.

According to the latest disclosed annual report, in 2025 Yuyuan Co., Ltd. achieved operating revenue of 36.37B yuan, down 10.55B yuan from the same period last year, a decrease of 22.49% year over year; net profit attributable to shareholders was -4.9B yuan, down 5.02B yuan from the same period last year, a decrease of 4009.26% year over year; non-recurring profit net (after excluding non-recurring items) was -4.1B yuan, with a year-on-year swing to a loss, widening by 94.38%.

Looking at individual quarters, in 2025 the company’s operating revenue in the first, second, third, and fourth quarters was 8.78B yuan, 10.33B yuan, 9.29B yuan, and 7.97B yuan, with year-on-year changes of -49%, -0.20%, 8.89%, and -26.33% respectively; the volatility was evident. Net profit attributable to shareholders was 0.52 billion yuan, 0.11 billion yuan, -52M yuan, and -11M yuan, with back-to-back losses in the third and fourth quarters.

Yuyuan Co., Ltd.’s listing can be traced back to December 19, 1990. At that time, Yuyuan Mall was listed on the Shanghai Stock Exchange and was hailed as the “first Chinese commercial stock,” and it was also one of the A-share “Old Eight Stocks.”

In 1992, Yuyuan Mall reorganized and integrated multiple surrounding long-established shops, renamed itself Yuyuan Mall, and the stock began trading on September 2 of that year. After that, the company gradually formed a diversified structure led by commerce, tourism, and catering, while also engaging in real estate and other businesses.

If counting from 1992, in its 34 years since listing, 2025 is the first time Yuyuan Co., Ltd. has recorded an annual loss.

Yuyuan Co., Ltd. stated that in 2025, international gold prices continued to fluctuate and rise at a high level. Its Jewelry and Fashion Group achieved business revenue of 4.41B yuan, down 24.16% year over year; overall performance was under pressure, facing a certain degree of operational pressure.

The jewelry and fashion business is Yuyuan Co., Ltd.’s core business, contributing 62.50% of the company’s operating revenue in 2025.

For the real estate business, in 2025 Yuyuan Co., Ltd.’s property development and sales segment saw both sales and revenue recognized upon delivery decline year over year, with revenue of 22.73B yuan, down 19.82%.

In response to the rare loss in operating performance in 2025, Yuyuan Co., Ltd. explained that there were three major factors: intensified volatility in international gold prices, a decrease in investment gains generated by disposing of non-core asset projects, and impairment charges for some real estate projects.

In 2025, the company’s investment net gains were -8.05B yuan, of which investment gains from associates and joint ventures were -1.21B yuan. The company’s asset impairment losses and credit impairment losses were 1.15B yuan and 1.46B yuan respectively. Adding the investment net gains, the total was -427M yuan.

Operating cash flow declines; asset-liability ratio reaches 71%

Yuyuan Co., Ltd., which once expanded frequently, is now promoting a downsizing and strengthening strategy to address its current predicament.

In 2002, Fosun Group obtained 20% of Yuyuan Mall through equity transfer, becoming the largest shareholder, and thereby opened the prelude to capital restructuring and nationwide expansion. It focused on strengthening golden jewelry (including Lao Miao Gold and Ya Yi Jewelry) and catering long-established brands (such as the Nanxiang Mantou shop), and also moved into areas such as real estate, mining, and finance. Subsequently, through investments such as Zijin? Mining? and Debang Securities, it built a synergy across consumption + finance + resources, while also advancing integration of property assets in the Yuyuan business district.

In 2018, Yuyuan Mall completed a major asset restructuring. The Fosun-related entities injected its real estate business and others into it, with a transaction consideration of 3.1B yuan. Yuyuan Mall was renamed Yuyuan Co., Ltd., with its positioning upgraded to Fosun Group’s “Happy Industry flagship platform,” focusing on dual main businesses: family happy consumption + city industrial landmarks.

After 2020, Yuyuan Co., Ltd. entered the baijiu spirits sector, acquiring 29.99% of Guanhui Liquor equity for 22.36B yuan, and bidding for 70% of the shares of Shede Group for 4.53 billion yuan, actively expanding.

However, after the company’s net profit attributable to shareholders jumped to the 3 billion yuan scale in 2018, by 2022 the company’s net profit attributable to shareholders still remained at around 3 billion yuan.

In 2023, it became the turning point for Yuyuan Co., Ltd.’s operating performance. That year, net profit attributable to shareholders fell 45% to 1.84B yuan, while non-recurring profit net (after excluding non-recurring items) was -2.02B yuan, marking a historic loss. In 2024, both revenue and net profit declined; net profit attributable to shareholders further fell to 451M yuan, a drop of 93.81%. Non-recurring profit net continued to widen losses to 2.11B yuan.

With two consecutive years of losses in non-recurring profit net and a sharp expansion in the decline of net profit attributable to shareholders, it was a sign of Yuyuan Co., Ltd.’s rare loss in 2025.

Yuyuan Co., Ltd.’s finances are under pressure. By the end of 2025, its asset-liability ratio reached 71.23%, and its finance costs for the year were 1.66B yuan. In that year, the net amount of operating cash flow was 2.45B yuan, down 42.38% year over year. Contract liabilities at the end of the period were 1.7B yuan, down 65.42% year over year.

In recent years, Yuyuan Co., Ltd. has been actively promoting its downsizing and strengthening strategy, such as selling equity stakes including Guanhui Liquor.

Closing stores is the reluctant downsizing of Yuyuan Co., Ltd.’s main business. The jewelry and fashion industry is the company’s core business. By the end of 2024, the Lao Miao and Ya Yi brand chain outlets numbered 4,615, including 253 directly operated outlets and 4,362 franchised stores, which was 379 fewer brand business outlets than in 2023. By the end of 2025, the Lao Miao and Ya Yi brand chain outlets were 3,952, down 663 year over year. In just two years, the total number of brand chain outlets decreased by 1,042.

In addition, in 2025, Yuyuan Co., Ltd. closed 99 outlets for its culture and dining directly operated stores, 22 for its beauty and healthy directly operated stores, and 1 for its fashion watch directly operated store.

In summary, only in 2025, Yuyuan Co., Ltd. closed a total of 785 stores.

Its first-ever annual loss has sounded an alarm for Yuyuan Co., Ltd. How to focus on core businesses, optimize the business structure, and respond to cyclical fluctuations in the industry is a severe test for Yuyuan Co., Ltd.

Editors: ZB

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