2013 Interim Results Lianhua Supermarket announced
During the first half of 2013, the Group developed steadily, with turnover increasing by 7.0% year on year to RMB 15,605 million. Gross profit margin and consolidated income margin were 14.18% and 23.98% respectively, which was a result of decreasing purchasing costs, increasing income from suppliers and optimized pricing strategy. Same store sales increased by 3.72%, representing an increase of 5.41 percentage points in pace, primarily as a result of effective product promotions, maturing business district surrounding the sub-new hypermarket outlets, the renovation of existing outlets, and the optimization of the Group's product structure. Operating profit was RMB320 million with an operating profit margin of 2.05%. Profit attributable to shareholders of the Company was RMB191 million. Basic earnings per share were RMB0.17 based on the issued share capital of the Company of 1,119.6 million shares. The board of directors of the Company (the "Board") does not recommend the distribution of interim dividend.
Mr. Ma Xinsheng, Chairman of Lianhua Supermarket commented, "China's chain retailers faced great challenges in the first half of 2013. With the slowing down of China's economic growth, increasingly intense competition in the retail chain industry, changing consumer habits and rapid growing e-commerce, the traditional retail industry has reached an inflection point. At the same time, sharp increase in various costs and change of retailer-supplier relationships have placed mounting pressure on the retail chain enterprises. Facing these challenges, Lianhua Supermarket pro-actively responded to the fierce competition, strived to win good price image on daily necessities, optimized product mix and seized the opportunity to further upgrade its outlets. As a result, the Group maintained its stable development and revenue growth."
Source: prnw.cbe.thejakartapost.com
