After losing nearly 4.9 billion yuan, what is the driving force behind the continued "slimming down" of Yuyuan Group?

Can AI’s Dayu Garden Area Cultural and Commercial Tourism Become a New Performance Engine?

In 2025, Yuyuan Group’s operating revenue reached 36.373 billion yuan, a year-on-year decline of 22.49%, and the net profit attributable to shareholders turned from profit to loss, with a net loss of 4.897 billion yuan during the period.

Investment Time Network, Punctuation Finance Researcher Lv Gong

In 2025, international gold prices continued to fluctuate at high levels, with dramatic volatility in the market, and the demand for gold, silver, and jewelry in the end market also showed a trend of structural differentiation, with evident changes in consumer demand. According to statistics from the China Gold Association, in 2025, China’s gold consumption was 950.096 tons, a year-on-year decrease of 3.57%, of which gold jewelry fell by 31.61% to 363.836 tons.

Against this backdrop, the performance of Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. (hereinafter referred to as Yuyuan Group, 600655.SH), whose main business involves the jewelry fashion sector, was also affected.

According to Yuyuan Group’s recently released 2025 annual report, the company achieved operating revenue of only 36.373 billion yuan, a decrease of 22.49% compared to the same period last year; the profit situation raised market concerns, with net profit attributable to shareholders plummeting by 4009.26%, turning from profit to loss, recording a significant loss of 4.897 billion yuan. In terms of quarterly performance, in the third and fourth quarters of 2025, Yuyuan Group continued to incur losses, and the net loss expanded from 551 million yuan in the third quarter to 4.409 billion yuan in the fourth quarter.

Regarding this loss, Yuyuan Group provided specific reasons, mainly due to a year-on-year decrease in investment income from the disposal of non-core asset projects, and an increase in the asset impairment provision for certain real estate projects compared to the previous year. Data shows that in 2025, the company’s investment income was -1.214 billion yuan, compared to 1.968 billion yuan in the same period last year; during the same year, the company’s asset impairment losses and credit impairment losses amounted to 1.889 billion yuan, an increase of 922 million yuan compared to the previous year.

Explanation of Significant Changes in Yuyuan Group’s Profit Due to Non-Core Business in 2025 (Unit: yuan; %)

Data Source: Company Financial Report

Yuyuan Group’s main business involves industries such as jewelry fashion, commercial retail, and real estate, all of which are highly market-oriented and competitive. In 2025, facing complex changes in the domestic and international economic environment, all business segments of the company encountered certain challenges.

As one of the pillar segments, jewelry fashion contributed 22.734 billion yuan in revenue to Yuyuan Group in 2025, accounting for 62.50% of the company’s total annual revenue. However, that year, affected by the continuous fluctuations in international gold prices, coupled with challenges to the terminal sales model of its core brand “Laomiao” due to industry competition, this segment faced operational pressure, with revenue decreasing by more than 7 billion yuan compared to the same period last year; during the year, the company’s sales volume of gold (products) decreased by 42.04% year-on-year.

In terms of stores, by the end of 2025, Yuyuan Group’s jewelry fashion sector had only 3,952 chain outlets under the “Laomiao” and “Yayi” brands, a decrease of 663 outlets compared to the end of the previous year, and a reduction of over 1,000 outlets compared to the number at the end of 2023 (4,994 outlets).

Changes in Physical Store Locations of Yuyuan Group’s Gold Jewelry by Region in 2025

Data Source: Company Financial Report

In recent years, the deep adjustment of the real estate industry has also brought certain pressures. In 2025, national real estate development investment reached 82.788 billion yuan, a decrease of 17.2% compared to the previous year (calculated on a comparable basis); the floor area and sales value of newly built commercial housing decreased by 8.7% and 12.6% year-on-year, respectively.

In this broader environment, Yuyuan Group focused on inventory destocking and rapid capital recovery, leading to a year-on-year decline in actual sales prices and gross profit margins, directly impacting the profitability of the company’s real estate development and operations segment. At the same time, due to the overall shrinkage in market transaction volume, continuous price declines, and increased destocking pressure, the company provided asset impairment provisions for certain real estate projects showing signs of impairment. This segment was one of the main areas affecting the company’s performance losses in 2025.

In fact, the significant drop in Yuyuan Group’s performance was not without warning. Looking back at the timeline, as early as 2022, Yuyuan Group’s annual net profit attributable to shareholders began to decline, dropping from 3.768 billion yuan in 2021 to 125 million yuan in 2024.

During the ongoing downward trend in profitability, Yuyuan Group simultaneously advanced a “slimming” plan, aiming to shut down unprofitable offline stores, sell inefficient assets, recover funds, and optimize its financial structure to focus on high-potential, high-growth, and highly synergistic core assets. During 2022 and 2023, the company successively transferred, reduced holdings, or sold its stakes in Jinhuijiu; entering 2025, the company and its subsidiaries transferred shares, debts, and other equity in multiple companies.

Some analysts pointed out that while “slimming” can reduce the company’s asset-liability ratio and recover funds, it also raises concerns from another perspective: will this continuous measure weaken the support for Yuyuan Group’s growth engine?

Currently, under pressure in its jewelry fashion main business, Yuyuan Group’s Dayu Garden area cultural and commercial tourism segment has garnered some attention. In 2025, the core Yuyuan Mall Phase I achieved a GMV of 4.29 billion, with visitor traffic of 41.12 million, and the rental rate improved year-on-year; the foundation works for Phase II South Li commenced during the year, and the planning scheme for North Li is also in the approval process. So, could this segment potentially become a new growth point for improving the company’s operational performance?

Investment Time Keywords: Yuyuan Group (600655.SH)

Author’s Statement: Personal opinion, for reference only.