Yonghui Supermarket Predicts 105.23% Net Profit Growth For 2016

Chinese supermarket operator Yonghui is banking on the increased spending power of Chinese consumers.

The company published its annual performance predictions for 2016, stating that the company expects to achieve operating revenue of CNY49.222 billion, a year-on-year increase of about 16.79%; while its net profit attributable to shareholders is expected to reach CNY1.242 billion, a year-on-year increase of about 105.23%.

The revenue increase is mainly attributed to the company's management structure optimization and cost control enhancement. In addition, during the reporting period, the company gained non-operating income by transferring equity of Lianhua Supermarket; and they also gained interest via flexible use of account funds.

Over the first three quarters of 2016, Yonghui realized operating revenue of CNY37.015 billion, a year-on-year increase of 17.7%; and its net profit attributable to shareholders was CNY815 million, a year-on-year increase of 36.6%. In 2016, the company opened 79 new stores, excluding membership stores.

In 2015, the supermarket retailer reported total operating revenue of CNY42.145 billion and net profit of CNY600 million. It opened 62 stores, excluding membership stores, during the year.

For the year 2017, Yonghui will continue to accelerate new store expansion while developing its community convenience stores.