Four Consecutive Years of Losses – Supermarket Giant Renrenle Delisted, Chairman Resigns

After suffering four consecutive years of heavy losses, Chinese supermarket giant Renrenle is now preparing to exit the A-share market. (Illustrative photo: A man shopping in a Beijing supermarket, August 13, 2023. Pedro Pardo/AFP)

[Dajiyuan] Following three years of strict pandemic lockdowns, the Chinese economy has remained sluggish even after the CCP lifted restrictions. The supermarket industry, in particular, has faced severe challenges. Now, Renrenle, a well-known legacy retail chain with nearly 30 years of history, has announced it will soon leave the A-share market.

On the evening of May 7, ST Renrenle (stock code: 002336.SZ) announced it had received a “Preliminary Delisting Notification” from the Shenzhen Stock Exchange on May 6, 2025. The exchange intends to terminate the company’s stock trading on the A-share market.

Founded in 1996, Renrenle was once a flagship retail brand in Shenzhen, competing with giants like Walmart and Carrefour. After going public in 2010, Renrenle saw annual revenues exceeding 10 billion yuan for several consecutive years, with stores spread across the country. However, in recent years, performance has steadily declined, and the company has now suffered losses for four straight years. Its liabilities have surpassed its assets.

According to Renrenle’s 2024 annual report, released on April 30, Revenue for 2024 was approximately 1.43 billion yuan, down 49.86% year-over-year. Total assets shrank by 50.94%. Net assets stood at -404 million yuan. As of December 31, 2024, the company had 32 stores. During the reporting period, 45 stores were closed, 15 transferred, and only one new store opened.

Notably, Renrenle previously issued a performance forecast indicating expected net profit between 410 million and 460 million yuan for 2024. However, the final annual report revealed a net loss exceeding 17 million yuan, marking the company’s fourth consecutive year of losses.

Renrenle’s shares are currently suspended from trading. Before the suspension, the stock had hit its daily limit down multiple times, dropping over 40% year-to-date, with a remaining market capitalisation of 1.624 billion yuan.

Renrenle is a state-controlled company. Its actual controlling shareholder is the Management Committee of Qujiang New District in Xi’an.

According to National Business Daily, during this turbulent period for the company, Chairman Hou Yankui suddenly submitted his resignation. On the evening of March 19, Renrenle announced that Hou, who had served as chairman for just a year and a half, had resigned from all positions, including director, chairman, and legal representative, citing health reasons.

However, Southern Metropolis Daily reported that despite his resignation, Hou is required to continue fulfilling his duties until a successor is appointed. This unusual “resigned but not relieved” arrangement has sparked speculation about whether he is attempting to evade legal responsibility.

Responsible Editor: Ning Feng