Beijing Jingkelong Revenue Up 6.7% In H1 2010

Beijing-based regional supermarket operator Jingkelong has published its semi-annual financial report for the first half of 2010, stating that its operating revenue was CNY3.467 billion, a year-on-year increase of 6.7%.

At the same time, it achieved gross profit of CNY485 million, a year-on-year increase of 7.2%; and its net profit was CNY84.4 million, a year-on-year increase of 20.1%.

The board of directors of Jingkelong said that during the first half of 2010, the company steadily expanded its retail network and improved its regional expansion strategy. It opened eight new stores, including five direct-owned stores and three franchised stores, in Beijing and Langfang. Meanwhile, it closed one comprehensive supermarket and terminated franchised agreements with ten stores, including nine convenience stores and one hosting store. By June 30, 2010, Jingkelong had opened 243 retail outlets, including 120 direct stores, 100 franchised stores, and 23 hosting stores, with a total operating area of 285,000 square meters.

The board of directors said that during the reporting period, Jingkelong further optimized its centralized purchase and distribution systems; promoted the standardized construction of its stores; and unified its product marketing. Those are the major reasons for the growth of the company's operating revenue.

In regards to the second half of 2010, Jingkelong said it will continue to implement its network expansion strategy, promote the standardized construction of its stores, and improve its logistic system while preparing for the group's listing in the Chinese A-share market.