Yonghui Superstores: Net Profit Increases by 32% YoY to CNY 2 Billion in 1Q – 3Q 2020

Consumer Staples Author: Yue Liu Oct 31, 2020 02:00 PM (GMT+8)

The outbreak of the pandemic has accelerated the pace of upgrading and transformation in the retail industry.

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Yonghui Superstores released its third-quarter 2020 financial report on October 30. It shows that, in the first three quarters of 2020, the company achieved revenue of CNY 72.67 billion, a year-on-year increase of 14.36%; net profit attributable to shareholders of listed companies was CNY 2.03 billion, a year-on-year increase of 31.86%; net operating cash flow was CNY 6.07 billion, a year-on-year increase of 165.87%.

In terms of delivery-to-home business, Yonghui Superstores achieved sales of CNY 6.535 billion in the first three quarters, an increase of 180% year-on-year, accounting for 9.7% of its main operating income, of which Yonghui Life APP accounted for 50.7% of this business.

Thanks to continuous investment in the supply chain, warehousing and logistics, Yonghui Superstores' cost control ability is improving. In the first three quarters of 2020, the weighted average return on equity reached 9.52%, an increase of 1.90 percentage points year-on-year; the gross profit margin was 22.05%, an increase of 0.16 percentage points year-on-year.

As of October 30, 2020, Yonghui Superstores had opened 970 stores, and it is expected to achieve the goal of breaking 1,000 offline stores before the end of 2020.