Listed for 33 years with its first loss! Yuyuan Group's 2025 performance plunges, struggling to break through under multiple pressures

On the evening of March 23, Yuyuan Co., Ltd. (600655) released its 2025 annual report, which broke the company’s profit record since its listing 33 years ago—total operating revenue was 36.373 billion yuan, down 22.49% year-on-year; net profit attributable to the parent was a loss of 4.897 billion yuan, shifting from profit to loss, with a decline of 4009.26%. This marks the first annual net loss since the company went public on the Shanghai Stock Exchange in 1992, indicating that its operations have fallen into a phase of difficulty.

The annual report data shows that Yuyuan Co., Ltd.'s operational pressures have completely transmitted to the asset side. As of the end of the fourth quarter of 2025, the company’s total assets were 114.892 billion yuan, a decrease of 4.80% compared to the end of the previous year; net assets attributable to the parent were 30.011 billion yuan, down 15.57% year-on-year. The dual pressures of shrinking asset scale and deteriorating profits reflect that the company’s asset quality and risk resistance ability are weakening.

As a diversified comprehensive enterprise, Yuyuan Co., Ltd.'s main businesses cover jewelry fashion, cultural dining, national tide watches, beauty and health, as well as composite functional real estate sectors. The recent performance crash is closely related to the collective pressure on its core business segments. The company admits that the jewelry, retail, and real estate sectors it is involved in are all highly market-oriented and fiercely competitive. The macroeconomic downturn in 2025 has led to overall consumption pressures, directly dragging down the revenue performance of all business segments.

The jewelry fashion segment, as the company’s revenue backbone, has been the most visibly impacted by the industry environment. In 2025, the international gold price experienced severe fluctuations at high levels, greatly affecting consumer purchasing willingness and terminal sales. This segment achieved revenue of 22.733 billion yuan, down 24.16% year-on-year, becoming the main drag on revenue decline. Considering industry trends, the jewelry industry in 2025 is in a transitional period, where gold investment demand surpasses demand for gold jewelry, and Yuyuan Co., Ltd. has failed to adequately adapt to this structural change, further intensifying the pressure on the segment.

The continued downturn in the real estate segment has become another major driver of performance losses. In 2025, the real estate industry was overall sluggish, and Yuyuan Co., Ltd.'s property development and sales segment saw both sales and turnover revenue decrease, achieving revenue of 8.049 billion yuan, down 19.82% year-on-year.

More critically, affected by industry adjustments, the company has made a provision for asset impairment of approximately 1.889 billion yuan for certain real estate projects, which directly eroded profits and became one of the core reasons for the net profit loss. It is noteworthy that in 2025, several property companies concentrated on making asset impairment provisions, becoming a common choice for the industry to “reduce burdens.” Yuyuan Co., Ltd.'s experience also reflects the overall difficulties in the real estate sector.

The sharp reduction in investment income has further exacerbated the performance deterioration. In 2025, Yuyuan Co., Ltd. recorded an investment income loss of approximately 1.214 billion yuan, while the same period last year had a profit of 1.968 billion yuan; the supporting role of asset disposal income to profits completely disappeared, creating a “double whammy” situation.

In fact, the performance crash of Yuyuan Co., Ltd. is not an accident but a concentrated outbreak of three years of operational decline. Reviewing past annual reports, it can be seen that since 2022, the company’s net profit has declined for three consecutive years, shrinking from 3.769 billion yuan in 2021 to 125 million yuan in 2024, with profitability continuously weakening. By the first three quarters of 2025, the company had recorded a loss of 488 million yuan, indicating a difficult situation for the entire year.

In the face of the most severe operational difficulties since its listing, Yuyuan Co., Ltd. is not without responses. Previously, the company had promoted a “slimming down and strengthening” strategy, accelerating the exit of non-core assets and optimizing its debt structure, but it is difficult to reverse the performance downturn in the short term. Currently, the company still faces multiple challenges, such as weak consumer recovery, significant pressure on real estate destocking, and pressured asset quality.

For Yuyuan Co., Ltd., how to focus on core businesses, optimize business structure, and respond to industry cycle fluctuations has become the key to breaking through. In the future, only by accelerating the destocking of real estate projects, optimizing the product layout of the jewelry segment, while improving operational efficiency and broadening profit channels can it gradually escape the current predicament and regain development momentum. This first loss has also sounded the alarm for this long-established enterprise; under industry transformation and macro pressures, only by proactively seeking change can it achieve long-term stable development.