Hengdeli Holdings Limited - The Standard Finance

Dear Shareholders,
On behalf of the board of directors (the “Board”), I am
pleased to present the annual report of Hengdeli Holdings
Limited (hereinafter referred to as the “Company”) together
with its subsidiaries (hereinafter referred to as the “Group”)
for the year ended 31 December 2009 (hereinafter referred
to as the “Year” or the “Year under review”) for your
review.
Under the severe impact of the global financial crisis
during the first half of 2009, the Group managed to adjust
its business strategies on a timely basis by sizing up the
situation, thereby effectively securing a sound and stable
operation of its business. Entering the second half of the
Year, the business environment in China experienced
relatively favourable changes, in response to which the
Group took a proactive and aggressive approach to
expanding its retail network with an aim to maintain a
steady growth of its results on a secure and stable basis.
The pre-determined targets have been accomplished
better than expected and therefore effectively safeguarded
the interests of the shareholders.
For the year ended 31 December 2009, the Group
recorded sales of RMB5,899,422,000, representing a
growth of 6.9% over the corresponding period last year. Of
these sales, retail sales amounted to RMB4,435,663,000,
representing an increase of 18.5% over the corresponding
period last year. Of such retail sales, the retail operations
in Mainland China and Hong Kong accounted for
RMB2,730,187,000 and RMB1,705,476,000 respectively,
representing an increase of 17.5% and 20.3% respectively
over the corresponding period last year. Excluding the
effect of fair value valuation on convertible bonds and
the profit/loss from currency exchange, the actual profit
for the year amounted to RMB458,211,000, representing
an increase of 6.5% over the corresponding period last
year. The Group’s net profit for the year amounted
to RMB386,093,000, representing a decrease
of 20.9% over the corresponding period last
year, primarily due to the effect of the
fair value valuation on convertible
bonds and the profit/loss from
currency exchange.
Annual Report 2009 - Hengdeli Holdings Limited