China's Yonghui Superstores Posts Annual Financial Results

Chinese supermarket retailer Yonghui Superstores has announced its financial reports for the year of 2011 and the first quarter of 2012.

According to the company, its net profit in 2011 was CNY466.92 million, an increase of 52.91% compared with the previous year. However, it expects a nearly 25% decrease of net profit for the first quarter of 2012, disregarding the 45% year-on-year increase of operating revenue.

In regards to the fluctuation in performance, Yonghui explained that it was mainly because of the fast growth of its financial costs; the rapid store expansion at the end of 2011; and its large labor costs overhead.

During the year of 2011, Yonghui opened 49 new stores and closed one. Its stores reached 12 provinces across China, with total operating area of 1.57 million square meters. By the end of 2011, the number of its stores reached 204, a year-on-year increase of 31%. In addition, the retail company has signed agreements for another 104 stores.

The retailer's performance results for 2011 showed that its total operating revenue was CNY17.732 billion, a year-on-year increase of 43.95%; its profit attributable to shareholders was CNY466.92 million, a year-on-year increase of 52.91%; its rent costs were CNY418 million, a year-on-year increase of 53.54%; and its sublease income was CNY121 million, a year-on-year increase of 56.04%.