China’s largest supermarket chain Lianhua Supermarket Holdings Co. today (Wednesday) posted a 32% rise in 2004 net profit on new store openings.
Lianhua recorded a net profit of 215.5m yuan (US$26.04m), up from 163.6m yuan a year earlier, while revenue increased to 10.85bn yuan from 9.28bn yuan, Dow Jones reported. .
In 2004, Lianhua added 620 outlets, bringing its total to 3,123. Of the total, 49 are hypermarkets, 1,340 supermarkets and 1,734 convenience stores.
Lianhua said it will accelerate new store openings in cities this year by means of direct operation, franchising, and mergers and acquisitions. It is maintaining its target of opening about 600 stores.
The company said it sees “immense” development opportunities, but it also faces “enormous” challenges as the retail industry consolidates.
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