Huarun Venture Announced 2013 Net Profit Slightly Rebounded

< p > yesterday afternoon, Huarun Wanjia company, the third largest retailer in the domestic retail industry, announced the 2013 performance report of "a href=" //www.sjfzxm.com/news/index_c.asp "Huarun entrepreneurship" < /a >.

The report shows that the company's profitability has improved as retail business has improved.

Affected by this, the company's share price, which has been declining recently, rose 1.23% yesterday to HK $19.76.

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< p > < strong > sales growth in the same store is ahead of < /strong > /p >

< p > annual report shows that the company's 2013 a href= "//www.sjfzxm.com/news/index_c.asp" > turnover < /a > net profit was HK $146 billion 413 million and HK $1 billion 908 million respectively, the turnover increased by 16% compared with the same period last year, and net profit decreased by 51.6%. After deducting assets revaluation and significant events, the net profit was HK $1 billion 642 million, up 7.5% over the same period last year.

In the middle of last year, the net profit of the company dropped by 11.1% compared with the non operating factors.

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Less than P, the net profit of retail business represented by Huarun Wanjia continued negative growth.

The report shows that in 2013, the business achieved a turnover of HK $95 billion 174 million and a net profit of HK $1 billion and HK $1 billion, a 14% increase in turnover and a 65.2% decrease in net profit. However, after excluding asset revaluation and major events, net profit increased by 39.8%.

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< p > it is worth noting that the sales of same store in the < a href= "//www.sjfzxm.com/news/index_c.asp" > /a > annual growth rate reached 4.7% annually, which is superior to other strong supermarket brands in China. For example, the retail sales of Gao Xin, the largest retailer in China, grew by only 2% in 2013, while Carrefour increased 3% in the third quarter of last year.

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< p > < strong > to make use of Tesco resources "electric shock" < /strong > /p >

< p > 2013, the milestone of Huarun venture retail business is the establishment of a joint venture with Tesco's China retail business.

Yesterday, Li Ruxiong, chief financial officer of Huarun venture, mentioned in his performance conference that cooperation with Tesco is not only for more than 100 stores, but rather its core competitiveness in the industry, including logistics capabilities, private brands, computer systems, and its electronic commerce and trade.

Tesco is the only company in the UK to make money in e-commerce business.

Huarun starts or plans to take the first step of using the relevant resources to "shock".

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"P", according to Huarun's announcement in February of this year, shows that Tesco's Chinese business is still in a continuous loss.

In the 6 months ended August 25, 2013, net loss amounted to 689 million yuan, with a total loss of 5 billion 752 million yuan.

At the same time, its current liabilities are 3 billion 838 million yuan more than its current assets.

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< p > according to the agreement between the two parties, Tesco will provide HK $4 billion 325 million cash for the joint venture except for the equity swap.

The industry believes that the fund will provide some capital for the development of the joint venture in the field of electric business after paying debts. However, the traditional supermarkets do not have a particularly successful example.

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< p > according to Tesco feedback, the application document of the joint venture company has been submitted to the Ministry of Commerce and expects to complete the examination and approval in the first half of 2014.

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