SINGAPORE (May 15): Zhongmin Baihui Retail Group reported 1Q18 earnings increased by 14.2% to RMB 23.8 million ($5.01 million), compared to RMB 20.8 million on 1Q17 due to higher other income.

Revenue for the quarter was 1.4% lower at RMB 254.9 million from RMB 258.3 million a year ago, mainly due to a decrease in revenue contribution from the group’s Direct Sales and Rental Income divisions.

This was partially offset by higher revenue contribution from the group’s Commission from Concessionaire Sales and Managed Rental divisions.

Gross profit for 1Q18 came in at RMB 79.4 million, 1.1% lower than RMB 80.3 million last year.

The group’s other income saw an 86.3% rise to RMB 35.0 million from RMB 18.3 million in the previous year, mainly due to higher non-recurring income, which was non-cash in nature, being recognised.

Administrative expenses rose 75% to RMB 33.9 million from RMB 19.4 million a year ago, mainly due to increase in depreciation and property tax arising from the acquisition of Quanzhou Chengnan Store’s premises and impairment charges of RMB 3.8 million on investment of 19% interest in Xiamen Ganghui Commercial.

On the outlook, competition in the retail environment is expected to remain intense.

In a filing in SGX, the group says, “We expect to open a 1,400 sqm store in Zhangzhou City, Fujian Province, around mid-2018. In addition, the 210,000 sqm complex in Changsha, Hunan, which is managed by a joint venture company formed between Chongqing Sasseur Outlets and the Group, is expected to be operational in 4Q18.”

Barring any unforeseen circumstances, the group expects its performance to remain satisfactory in the near future.

Shares in Zhongmin Baihui Retail closed 1 cent higher at 90 cents on Tuesday.