Hefei Department Store to raise RMB 822 mln

Oct. 28, 2009 (China Knowledge) - Hefei Department Store Group Co Ltd<000417> yesterday announced that it plans to issue up to 90 million shares for RMB 9.54 per share or RMB 822 million at most, sources reported.

The proceeds from the issuance will be used principally to fund five projects in Anhui Province.

The Shenzhen-listed firm will buy a 51.3% stake in a chain store firm called Joy Mart for RMB 165 million and a 40% stake in a trading firm for RMB 68.77 million. It will also invest RMB 140 million in a shopping mall in Bengbu and inject RMB 117 million into a shopping center in Chaohu. It will also develop an RMB 231-million agricultural project in Hefei.

The remaining RMB 100 million of the proceeds will be used to replenish working capital.

Yesterday, the department store company announced that its net profit for the third quarter of this year was RMB 54.24 million, up 98.27% year on year and that its total operating revenue swelled 18.54% year on year, hitting RMB 1.29 billion.

 In the period from January to September, the firm's net profit surged 81.16% year on year, reaching RMB 131.33 million, and its total operating revenue was RMB 4.3 billion, up 14.9% year on year.