First Financial Daily has reported that Mao Jiankang, former general manager of Lianhua's south China area, will be transferred to Shanghai headquarters, and Wang Keqiang, current general manager of the southwest area, will become the general manager of the two areas.
In the mid-term report of Lianhua Supermarket, its main business, Century Mart, achieved a business volume of RMB4.861 billion in the first half of 2007, which increased 10.42% compared with the same period of 2006. However, it made a loss for the first time and the amount of deficits was as high as RMB51.581 million.
The report reveals that the reason for the deficit is because of the closure of its three marts in Guangzhou. From March 2007, Lianhua Supermarket successively closed its three marts in Guangzhou, which cost the company RMB70.9 million for the penalty of terminating contracts, canceling non-recoverable assets, and compensation for staff.
Century Mart has only four stores in the south China area, which are in Zhongting Street store, Fuzhou; Taojin and Jiuzhou stores, Guangzhou; and Sanhuan store, Huizhou. Although the closure of its three stores in Guangzhou has brought negative influence to Lianhua Supermarket, the increases of many retail indices of its south China stores are still among tops in the country.