Lianhua Supermarket Profits Again Last Year "Diving"

On the afternoon of January 27th, Lianhua Supermarket issued a profit warning notice. According to its content, Lianhua Supermarket's profit in 2014 is expected to decline significantly compared with 2013's profit, and the decline is 30% to 50%.

This is followed by Lianhua Supermarket 2013 net profit plunge, performance again "diving".

Lianhua Supermarket believes the main reason is that the profit has dropped sharply.

The market competition is fierce, and the rigidity of cost increases, especially the rise of labor cost.

It is reported that Lianhua Supermarket's annual report will be published in March this year.

It is understood that as early as the third quarter of 2014, the loss of 46 million 490 thousand yuan, Lianhua supermarket has pointed out that the first three quarters of this year, the trend of net profit will continue to the end of the year.

It is reported that in the first three quarters, Lianhua Supermarket achieved an unaudited business income of about 24 billion 168 million yuan, and the operating cost was about 19 billion 217 million yuan. The net profit attributable to the parent company's owner was about 51 million 164 thousand and 400 yuan, and the asset size as at the end of September this year was about 18 billion 742 million yuan.

According to its first half annual report, there were 4412 stores in Lianhua Supermarket in the first half of 2014, compared with 118 at the beginning of the year, including 157 large supermarkets, a net increase of 1, a standard supermarket 2433, a net reduction of 36, and convenience stores 1822, with a net reduction of 83.

It can be said that Lianhua Supermarket in Lianlian stores in 2014 failed in its market performance.

Although 2014

Profits have fallen sharply, but will not hinder them.

The pace.

In September 2014, Lianhua Supermarket bought nearly all the shares of Yiwu's urban life for nearly 900 million yuan.

At that time, Lianhua Supermarket pointed out that the rental retail space was expected to bring stable income every month. It is also expected that the market influence of good tenants can be used to attract more customers to Yiwu property, which is conducive to the development of large supermarket.

Lianhua supermarket was founded in May 1991. It is the first supermarket company in Shanghai to develop chain operation.

Listed in the form of H-share in The Stock Exchange of HongKong Limited in June 27, 2003, it is the first Chinese retail chain supermarket listed on the stock exchange, known as the "retail chain bulldozer".

As the business super industry has entered a meager profit era, its "big but not strong, even without locking" shortcomings are becoming increasingly prominent.

Macroeconomic problems such as slowing economic growth, increasing impact of electricity suppliers, rising operating costs and other macroeconomic problems, coupled with general sales performance upper limit and tight adjustment of operation mode, all become "worse."

In the face of a sharp decline in retail profits, whether Lianhua can make rapid adjustments and maintain the super status of mainstream businesses remains to be seen.