Beijing Jingkelong Company Limited has published its half year report, which shows that as of June 30, 2008, the company had made net profits of CNY76.361 million, a year-on-year increase of 34.39%.
Chen Limin, CFO of Jingkelong, stated that the total retail sales of the company in July 2008 had increased by 20%. The company invested CNY248 million in its retail sector in the first half of 2008 and in the second half, it will continue to invest CNY100 million to open a directly-managed hypermarket, four supermarkets, and five convenience stores.
By June 30, 2008, the revenue from Jingkelong's retail sector increased 18.3%; the revenue from its wholesale sector increased 43.9%; its gross profit and gross profit rate were up 38.5% and 0.8 percentage points respectively; and its same-store sales were up 9.5%, a year-on-year decrease of 4 percentage points.
Chen stated that the major reasons for the decrease of same-store sales are competition and the increase in the CPI. However, she predicted that the sales of individual stores would rise by an average of 9% in the second half of 2008.