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HONG KONG, Mar 30, 2011 - (ACN Newswire) - Intime Department Store (Group) Company Limited ("Intime" or the "Company", together with its subsidiaries, the "Group"; Stock Code: 1833.HK), China's renowned department store chain, announces the consolidated results of the Group for the year ended 31 December 2010 (the "Reviewing Period").
Financial Highlights
-- Total gross sales in 2010 increased to RMB8,743.0 million,
representing an increase 36.4% compared to 2009
-- Same store sales growth increased to 18.2%
-- Total revenue increased to RMB2,288.8 million, representing
an increase of 45.6%
-- Profit attributable to owners of the parent increased to
RMB685.2 million, representing an increase of 48.1%
-- Basic earnings per share increased to RMB0.39
-- Proposed final dividend of RMB0.05 per share (together with the
interim dividend of RMB0.10 per share, total dividend for the
year ended 31 December 2010 will amount to RMB0.15 per share)
During the Reviewing Period, the Group's department stores achieved total gross sales proceeds of RMB8,743.0 million in 2010, representing a year-on-year increase of 36.4%. This increase was primarily attributable to the same store sales growth of approximately 18.2%, the inclusion of full year sales performance of the new stores opened in the year 2009 and the sales performance of the new stores opened in the year 2010. Total revenue increased by 45.6% to RMB2,288.8 million and the profit attributable to equity holders of the parent increased to RMB685.2 million, up 48.1% compared to 2009. The basic earnings per share was RMB0.39. The Total gross margin is 18.6%.
The board has recommended the payment of a final dividend of RMB 0.05 per share. Together with the interim dividend of RMB0.10 per share, the total dividend for the year ended 31 December 2010 will amount to RMB 0.15 per share.
The liquidity and financial position of the Group have strengthened significantly during the year. The Group's cash and bank balances amounted to RMB1366.1 million as at 31 December 2010, representing a significant increase of RMB363.4 million from the end of 2009. As at 31 December 2010, total borrowings were RMB2,817.9 million.
Currently, the Group operates and manages a total of 23 stores with a total Gross Floor Area (GFA) of 898,939 square meters, including 16 department stores located in the principal cities of Zhejiang province, 6 department stores located in Hubei province and 1 store located in Shaanxi province. To enriched product mix and availability of new merchandise, the Group reinforced its collaborations with suppliers by signing strategic cooperation agreements with 188 leading and popular brand names in the 2010 Suppliers Conference.
In view of the annual results of 2010, Mr. Shen Guojun, Chairman of the Group said, "In line with our development roadmap, the Group has stepped up its expansion efforts in 2010 and become a national department store chain with competitive strength in multiple regional markets. The Group not only strengthens its leadership position in Zhejiang province, enhanced its presence and influence in Hubei province, but also made significant entries into Anhui and Beijing market. We have acquired two pieces of prime lands in Zhejiang province to build shopping malls, acquired in Hubei province the equity interests in Hubei Wuluo and Suizhou New Century, and acquired in Anhui province the Huaqiao Plaza Project and the signing of strategic cooperation agreement with Anhui Xinhua Distribution Group. In Beijing, the Dahongmen project is also making good progress, and our acquisition of 50% equity interest in Beijing Youyi Lufthansa will provide the Group will greater leverage in Beijing market. Divestments of underperforming assets, along with the successful completion of a HK$1,941 million convertible bond offering in October 2010, have strengthened the Group's financial position to support its business expansion in future years."
Operational Review
During the Reviewing Period, the Group further strengthened its position as the leading department store operator in Zhejiang province by opening Intime Fuyang Store with a GFA of 26,000 square meters in April 2010. Intime Fuyang Store is the Group's first county-level store in the northern region of Zhejiang province with substantial growth prospect. In addition, the Group continued to strengthen its competitive position in Hubei province by acquiring 84.5% equity interest in Hubei New Century, is the biggest general retail operator in Suizhou, Hubei province, with 15 years of track record for a total consideration of RMB248.09 million in November 2010. Hubei New Century has two core businesses, namely: department store, chain supermarket and convenience store. Hubei New Century owns two shopping centres with an aggregate floor area of more than 37,000 sq.m., both located in the prime commercial area of Suizhou. Its chain supermarket and convenience store has more than 30 outlets.
Development Strategies & Outlook
The PRC economy is expected to maintain its stable and steady growth rate, to capture this opportunity, the Group will continue to adhere to its "regional predominance" strategies to develop into a leading department store chain network in various regions in China.
In 2011, the Group will strengthen its management capabilities in running and developing community shopping mall model covering supermarkets, restaurants and department stores in order to meet the market demand. The Group will continue to develop the online store and leverage the existing physical stores to enhance its online-offline interaction. Moreover, the Group will make efforts to improve merchandise management, marketing, human resources, cost control and customer services to capitalize on the retail boom brought by China's growing middle class, rapid urbanization and rising disposable income.
Looking ahead, Mr. Shen Guojun, Chairman of the Group said, "The Group is confident in the promising outlook of the department store industry. In the 12th Five-Year Plan, the Chinese government is committed to the ongoing process of steering its economy away from export-led growth to domestic consumption-led growth. The Group will focus on operating trendy department stores while also actively developing multi-functional, lifestyle-driven shopping malls. The Group will strive to enhance the quality of store operations management and continue its successful expansion along a well-defined blueprint."
Contact:
Wonderful Sky Financial Group Limited
Joanne Chan / Scarlett Shi / Ada Di / Ada Kwong/ Tracey Huang
Tel: +852 3970 2181/ 3970 2182
Fax: +852 2598 1588
Email: joannechan@wsfg.hk / scarlettshi@wsfg.hk / adadi@wsfg.hk/ adakwong@wsfg.hk/ traceyhuang@wsfg.hk
Topic: Earnings
Source: Intime Department Store
Sectors: Retail & eCommerce, Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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