Leading Chinese supermarket chain Lianhua posted 30.7% profit growth for the first half on the back of increased synergies and consolidation.

The company posted CNY326m (US$47.8m) net profit attributable to shareholders, while turnover grew 18.5% to reach CNY13.91bn.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The company said that it is seeing increased bargaining power through its consolidation with the Hualian supermarket chain and its internal restructuring which has seen improved merchandise flows, logistics and information flows. The company said it has consolidated its internal resources and enhanced its bargaining power and economy of scale in its sales network.

Its hypermarket division increased turnover by 9.3% to CNY7.26bn, which accounted for around 55.8% of the group’s turnover. Operating profit for the division increased 51.5% to CNY172.8m. The company attributed the growth to its efforts in improving its outlets and supply chains.

The company said following the successful acquisition of the Bailian Group, it is seeking further merger opportunities

 

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now