Yuyuan Group Rarely Posts a Loss of 4.9 Billion, Financial Expenses of 1.66B, Closing 785 Stores in One Year to Reduce Burden

Shangjiang Business Reporter Shen Yourong

Among China’s A-share market’s “Eight Old Stocks,” Yuyuan Co., Ltd. (600655.SH) has released an unexpectedly surprising set of financial results.

On the evening of March 23, Yuyuan Co., Ltd. disclosed 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 the parent was -4.9B yuan, down 4009.26% year over year.

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

Yuyuan Co., Ltd.’s rare annual loss was mainly caused by three factors working together, namely, intensified fluctuations in the international gold price, a reduction in investment gains generated from the disposal of non-core asset projects, and asset impairment provisions made for certain real estate projects.

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

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

In 2025, Yuyuan Co., Ltd. implemented “0 dividend.” However, the company had previously spent 177 million yuan to repurchase its shares on the secondary market for cancellation.

Given the current situation, Yuyuan Co., Ltd.’s measures are to continue streamlining and strengthening its operations.

In 2025, Yuyuan Co., Ltd. shut down a total of 785 stores, including those for jewelry and watches, among others.

First annual loss in 34 years since listing

In its 34 years since listing, Yuyuan Co., Ltd. saw its first annual loss.

According to the latest disclosed annual report, in 2025, Yuyuan Co., Ltd. achieved operating revenue of 36.37B yuan, decreasing 4.9B yuan from the same period last year and down 22.49% year over year; net profit attributable to the parent was -5.02B yuan, decreasing 4.1B yuan from the same period last year and down 4009.26% year over year; net profit excluding non-recurring items was -8.78B yuan, with an increase in loss of 94.38% year over year.

From the perspective of individual quarters, in 2025, the company’s operating revenue for the first, second, third, and fourth quarters was 10.33B yuan, 9.29B yuan, 7.97B yuan, and 52M yuan, respectively, with year-over-year changes of -49%, -0.20%, 8.89%, and -26.33%, showing clear fluctuations; net profit attributable to the parent was 11M yuan, 0.011 billion yuan, -551M yuan, and -4.41B yuan, with consecutive 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 “China’s first commercial stock,” and it was also one of A-share market’s “Eight Old Stocks.”

In 1992, Yuyuan Mall reorganized and integrated multiple surrounding long-established retail brands, renamed itself Yuyuan Co., Ltd., and its stock was listed for trading on September 2 of that year. After that, the company gradually formed a diversified setup led by commerce, tourism, and catering, alongside real estate and other business segments.

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

Yuyuan Co., Ltd. said that in 2025, the international gold price continued to fluctuate and rise at a high level. Its jewelry and fashion group achieved business revenue of 22.73B yuan, down 24.16% year over year. Overall performance was under pressure, facing certain operating headwinds.

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

For the real estate business, in 2025, Yuyuan Co., Ltd.’s property development and sales segment saw both sales and revenue recognized from settlements decline at the same time, achieving revenue of 8.05B yuan, down 19.82% year over year.

In response to the rare loss in its operating performance in 2025, Yuyuan Co., Ltd. explained that there were three main factors: intensified volatility in the international gold price, a decrease in investment gains generated from the disposal of non-core asset projects, and asset impairment provisions made for certain real estate projects.

In 2025, the company’s net investment gains were -1.21B yuan, of which investment gains from associates and joint ventures were -1.15B yuan. The company’s asset impairment losses and credit impairment losses were 1.46B yuan and 427M yuan, respectively. Adding net investment gains, the total was -3.1B yuan.

Operating cash flow declined; asset-liability ratio reached 71%

Yuyuan Co., Ltd., which had previously expanded frequently, is now pushing a strategy of streamlining and strengthening its operations to deal with the current predicament.

In 2002, Fosun Group obtained a 20% stake in Yuyuan Mall through equity transfer, becoming the largest shareholder and kicking off a capital consolidation and nationwide expansion drive. It focused on strengthening gold jewelry (Old Temple Gold, Yayi Jewelry) and catering long-established brands (including the Southxiang Steamed Bun Shop, etc.), and also entered areas such as real estate, mining, and finance. Subsequently, by investing in Zijin Mining Industry, Debon Securities, and others, it built synergies of consumption + finance + resources, while also advancing the integration of property assets in the Yuyuan commercial district.

In 2018, Yuyuan Mall completed a major asset restructuring. The Fosun-affiliated entities injected real estate business and others into it, with transaction consideration of 22.36B yuan. Yuyuan Mall was renamed Yuyuan Co., Ltd., and its positioning was upgraded to become the “Happy Industry flagship platform” under Fosun Group, with its main focus on dual engines: family happiness consumption + urban industrial landmarks.

After 2020, Yuyuan Co., Ltd. entered the liquor spirits track. It acquired 29.99% equity interest in Jinhui Liquor for 1.84B yuan and won 70% equity interest in Shede Group for 4.53 billion yuan, actively expanding.

However, since its net profit attributable to the parent surged to the 3 billion yuan level in 2018, by 2022 the company’s net profit attributable to the parent still remained at around 3 billion yuan.

In 2023, it was a turning point in Yuyuan Co., Ltd.’s operating performance. That year, its net profit attributable to the parent fell 45% to 2.02B yuan, while its net profit excluding non-recurring items was -451M yuan, resulting in a historic loss. In 2024, both revenue and net profit declined. Net profit attributable to the parent further fell to 125 million yuan, a decline of 93.81%, and net profit excluding non-recurring items expanded its loss further to 2.11B yuan.

Two consecutive years of losses in net profit excluding non-recurring items and a sharp expansion in the decline of net profit attributable to the parent are signs of Yuyuan Co., Ltd.’s rare loss in 2025.

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

In recent years, Yuyuan Co., Ltd. has actively advanced a strategy of streamlining and strengthening, such as selling equity interests including Jinhui Liquor.

Closing stores is the reluctant streamlining measure for Yuyuan Co., Ltd.’s main business. The jewelry and fashion industry is the company’s core business. At the end of 2024, the “Old Temple” and “Yayi” brand chain outlets totaled 4,615 stores, including 253 direct-operated locations and 4,362 franchise stores, which was 379 fewer brand operating outlets than in 2023. By the end of 2025, the “Old Temple” and “Yayi” brand chain outlets were 3,952 stores, 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 culture and dining direct-operated outlets, 22 beauty and health direct-operated outlets, and 1 fashion watch retail outlet, respectively.

In summary, in 2025 alone, Yuyuan Co., Ltd. shut down a total of 785 stores.

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

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