China'S Last Year'S Net Profit Of 555 Million Continued To Open Shop

Listed in Hongkong

China announced yesterday that the annual net profit of the group increased by 7.5% to 555 million yuan (RMB, the same below) in December 31, 2014.

Compared with the group's performance in the middle of last year, the net profit growth rate has improved significantly.

In the first half of last year,

The net profit was 248 million yuan, up 2.4% from the same period last year.

In response to the reasons for the improvement in performance, the announcement said that although the retail environment was difficult last year, and the group implemented the strategy of "upgrading quality without raising prices", the average unit price of the products had declined. However, the measures taken to improve product image and product design implemented during the year were appropriate, and consumers kept stable demand for the group products.

Data show that in 2014, the sales volume of China's main brand "LILANZ" was 2 billion 200 million yuan, an increase of 5.2%; the sales volume of the sub brand "L2" was 224 million yuan, up 17.3%; the aforementioned two largest.

Sales accounted for about 90.4% and 9.2% of the total turnover respectively.

Another analyst pointed out that the improvement of China's first half year's performance was related to the effective rectification of the marketing network, which greatly reduced the operating cost.

According to the announcement, last year, China continued to support distributors to optimize the store network. In response to the market changes, the main brand "LILANZ" has been rectifying nationwide retail outlets, closing off unprofitable shops, merging or resetting inefficient stores.

As of the end of December, the number of group stores was 3079, representing a decrease of nearly 400 from 3455 at the beginning of the year.

Among them, the number of "LILANZ" stores decreased by 397 to 2783 throughout the year.

The announcement further pointed out that in 2015, the group's brand will still be cautious. The total number of stores will remain at the same level as the end of 2014. The plan to open a large store in the shopping mall of the provincial capital and prefecture level cities will continue. It is expected that the number of such stores will increase by 20 to 30 this year.

On the same day, China's share price rose sharply, and its share price rose by more than 3% to HK $5.42.