China's Lianhua Supermarket Announces 2007 Results

Lianhua Supermarket announced its annual results for the year ending December 31, 2007 with turnover reaching RMB18.09 billion, an increase of 10% over the previous year.

Chairman of Lianhua Supermarket Wang Zhigang said, "With seventeen years of development in the PRC market, the Group had gained valuable experience in operating and managing our business. We also attained in-depth knowledge regarding the changing needs of retail markets as well as the consumers. We have more than 3,000 outlets, over 40,000 staff, including a massive consumption backup of over 6 million members, and a sophisticated logistic distribution system. The Board believes, such an enormous wealth will continue to drive the on-going development of the Group and lay a solid foundation in creating unprecedented value for our shareholders."

During the period, operating profit and profit before taxes enjoyed considerable growth, reaching RMB417 million and RMB585 million, an increase of 81% and 59%, respectively, over the same period last year. Profit attributable to shareholders was RMB268 million, up by 11.05%. Gross profit also recorded a steady growth of RMB2.35 billion, or 18.5% over the previous year. Gross margin remained stable at 12.99%, rising 0.94%; consolidated income margin had a sustained growth of 1.86% and reached 25.47%. Operating profit was RMB417.29 million, a growth of 81.8% when compared to previous year. Profit attributable to shareholders had reached RMB268.3 million, a growth of 11.05% when compared to previous year. Earnings per share was RMB0.43.

The company's board recommended a final dividend of RM 0.12 per share for the year, together with an interim dividend of RMB0.06.

By looking at the operating environment of the retail enterprises in China, the company said in a press release that it believes that the enhancement of the overall management capabilities will become one of the driving forces in the continuing performance growth.