Red Flag Chain Store's 2025 revenue is 9.56B yuan; reductions in sales expenses and other costs offset the impact of the external environment

On the evening of March 25, Hongqi Chain (002697) released its 2025 performance brief. During the reporting period, it achieved a total operating revenue of 9.56B yuan, down 5.61% year-on-year; operating profit of 668 million yuan, up 10.75% year-on-year; and net profit after deducting non-recurring gains and losses of 453 million yuan, down 4.91% year-on-year.

In response, Hongqi Chain stated that the overall consumer market is under pressure, and the industry competition ecosystem shows features of disorder and homogenization. Coupled with the company’s optimization and adjustment of tail-end stores during the reporting period, there was a slight impact on revenue scale. At the end of the reporting period, Hongqi Chain’s total assets slightly increased by 0.24% compared to the beginning of the period, and owners’ equity attributable to the listed company’s shareholders grew by 7.26% compared to the beginning of the period.

Hongqi Chain further indicated that thanks to the company’s optimization and adjustment of stores and its efforts to improve management efficiency, both sales expenses and administrative costs were significantly reduced, effectively offsetting external environmental impacts; during the reporting period, Hongqi Chain’s investment in the affiliated New Bank performed well, and the company’s investment income increased accordingly; due to policy adjustments and related income tax impacts on its subordinate wholesale subsidiaries, net profit declined slightly year-on-year, but the impact on subsequent operating profits was minimal.

2026 marks the beginning of the “14th Five-Year Plan,” and Hongqi Chain states that in the face of a complex and changing external environment and increasingly fierce industry competition, the company will adapt to industry development trends, focus on long-term value, adhere to “opening sources, reducing costs, and improving efficiency,” and strive to achieve steady progress in development and stable improvement in operational indicators.

It is reported that Hongqi Chain has established mutually beneficial and win-win business cooperation relationships with over a thousand suppliers, and is currently a key enterprise for emergency supply of essential living goods in Sichuan Province and Chengdu City. In the segmented field of nationwide convenience chain supermarkets, Hongqi Chain’s scale and profitability are also among the top in the industry, and it is the first convenience chain supermarket listed on China’s A-share market. Currently, Hongqi Chain has over 3,000 stores, mainly concentrated in Greater Chengdu and surrounding cities.

Looking back to November 2024, the controlling stake and actual controller of Hongqi Chain changed, with the listed company’s controlling shareholder becoming Sichuan Commercial Investment Co., Ltd., and the actual controller changing to the State-owned Assets Supervision and Administration Commission of Sichuan Province; founder Cao Shirui continued to serve as the general manager of the listed company.

On February 10 of this year, Hongqi Chain held its 2026 Spring Festival event. Cao Shirui, the general manager, stated in his speech that looking ahead to 2026, Hongqi Chain will further optimize its product structure, deepen strategic cooperation with suppliers, accelerate the selection of products for Hongqi Preferred, aiming to break through 100 varieties this year, and introduce more international brands through Hainan. In terms of community services, the company plans to add more convenient services on top of existing projects like domestic help services.

In terms of development, Hongqi Chain will continuously expand its cooperation boundaries, establishing long-term strategic partnerships with major enterprises such as State Grid, China National Petroleum, Sinopec, and large banks like Bank of China and CITIC Bank. Currently, Hongqi Chain is engaging with more large enterprises and institutions, fully exploring cooperation potential in employee benefits, corporate canteens, and member interconnectivity, aiming to build a resource-sharing, capability-complementing, and value co-creating Hongqi ecosystem.