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.
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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
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By GlobalData
