Hong Kong-based Lianhua Supermarket Holdings booked an increase in half-year profits today (27 August), up 10% year-on-year.

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Net profit for the six months to 30 June reached CNY250m (US$37m) compared to CNY277m in the same period of 2008.


Profit before taxation amounted to CNY380m, representing an increase of 19.7% from the previous year. Operating profit was up 26% to CNY318m.


Turnover was also up, reaching CNY10.97bn, an increase of 2.21% as on 2008.


Same-store sales, however, decreased by 1.7% as a result of the slump in the price of consumer goods and “sluggish” consumption sentiment.

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“The group believes that China’s domestic consumption will continue to grow steadily in line with a number of improvements, including China’s economic recovery, the growth in the income of China’s urban citizens, gradual increase in consumer confidence, regain of employment rate of urban citizens, and financial improvement due to a rebound of the capital market,” the company said.