Lianhua Supermarket Holdings Co Ltd H 00980 - equity, debt and subsidiaries

Accuracy score :
97%

Lianhua Supermarket Holdings Co Ltd H  00980

Summary (from latest annual report)

  • Total stockholders' equity : 369 million USD
  • Market Cap is 435 million USD ( the last price of the stock is 3.11 HKD)
  • Lianhua Supermarket Holdings Co Ltd is engaged in operation of hypermarkets, supermarkets and convenience stores in China under brand name Century Mart, Lianhua Supermarket, Hualian Supermarket and Lianhua Quik
  • Total stockholders' equity has decreased from 436 million USD in 2015 to 369 million in 2016
  • Company has 400 million USD in cash on account (from latest annual report)
  •  In 2016 total debt was 300 000 USD
  • Company's revenue decreased in 2016 to 4 billion USD from 4.08 billion in 2015
  • Net loss in 2016 was 67.5 million USD, Net loss in 2015 was 74.5 million USD

 

Opinion about the company

Fundamentally it is a not bad company and in the future, we can expect its growth (Total debt is 300 000 USD, company has 400 million USD in cash on account, ROE is negative, around -17%).

Lianhua Supermarket Holdings Co Ltd H  00980

Lianhua Supermarket Holdings is a subsidiary of the Bailian Group and the company has offices in Shanghai and Hong Kong. The first store opened in Shanghai in 1991. On 27 June 2003 the company was listed on the Hong Kong Stock Exchange. Lianhua Supermarket and its subsidiaries (the “Group”) operated a total of 3,618 outlets (excluding those operated by the Company’s associated companies) spanning 19 provinces and municipalities across the nation. The Company has maintained its leading position in the fast-moving consumer goods retail industry in the People’s Republic of China (the “PRC”).

The Group operates in three main retail segments – hypermarkets, supermarkets and convenience stores, in order to cater for the diverse needs of consumers. These segments operate under the brand names of “Century Mart”, “Lianhua Supermarket”, “Hualian Supermarket” and “Lianhua Quik”, respectively. In recent years, “Lianhua Supermarket”, “Hualian Supermarket” and “Lianhua Quik” have been singled out as one of the China Outstanding Franchise Brand by the Franchise Committee of China Chain Store & Franchise Association.

  • Hypermarkets represent approximately 61.1% of the Group’s turnover
  • Supermarkets represent approximately 31.2% of the Group’s turnover
  • Convenience Stores represent approximately 7.7% of the Group’s turnover
  • The Group has a total of 3,618 stores, 2,092 stores are franchised and 1,526 stores are directly operated
  • Approximately 81.73% of the Group’s stores are located in East China

In 2016, the Group’s turnover was approximately RMB26,666 million (4 billion USD), decreased by RMB557 million when comparing with corresponding period of last year (a decrease of approximately 2.0% year over year). In particular, same store sales fell by approximately 1.23% when comparing with corresponding period of last year. It was mainly due to: (1) online sales still grew rapidly while total volume of offline sales kept shrinking; (2) expansion of new stores slowed down, resources of network was streamlined and stores with unsatisfactory performance were closed, and total number of stores decreased by 265; (3) promoting restructuring of commodity categories and expanding sales scales and proportion of fresh produce, further, the unit price for fresh produce is rather low compared with other categories, making it hard to lift the unit price; and in the latter half of 2016, the plan of transformation and upgrading of stores was gradually implemented, and the sales of stores during the period of transformation and upgrading showed negative growth. The gross margin remains the same when compared with that of last year, reaching 14.77%. In 2016, the Group had an operating loss, it was mainly due to the decrease in gross profit and other income, and increase in other operating expenses.

Acquisitions :

  • In 2009 Lianhua purchased Hualian Supermarkets from its parent company for 492 million yuan (73 million USD)
  • In last five years, company spent 400 million USD on capital expenditure

Total = 473 million USD