Beijing-based supermarket and department store retailer Hualian has published its annual report for 2008, which states that its revenue increased by 16.43% to CNY8.618 billion in the period while its profits decreased by 47.49% to a mere CNY150 million.
According to the report, the profit ratio of Hualian's department store business was 19.36%, a slight increase of 0.71% compared with that of 2007; and the profit ratio of its supermarket business was 9.83%, which was a decrease of 1.09% over the previous year.
Hualian said the profit decrease was mainly attributed to the intensive opening of new stores, the closing and renovation of some old stores, and the effect of macroeconomic situation.
The report showed that Hualian opened ten new stores over last year in addition to its investments in two companies.
With regard to its strategy for 2009, Hualian emphasized that the company plans to enhance its promotion and will provide more popular and own-brand products to attract more consumers. For network expansion, the company will focus on food-oriented supermarkets.