Hualian supermarket Co Ltd, China's second-largest supermarket operator by sales revenue, reported that its net profit rose 9.9 percent in the first half of this year.

　　The shanghai-listed firm said in a financial report yesterday that it earned 30 million yuan (US.6 million), or 0.195 yuan per share, from January to June.

　　Revenue in the first half of this year rose 20.8 percent to 1.97 billion yuan.

　　"Hualian is gearing up its expansion and consolidating supply chains and management in the first half," said Huang Haiyan, Hualian's spokeswoman. "Although the SARS outbreak has slowed down the expan-sion around the country, the company will try to increase the pace in the second half."

　　By the end of June, Hualian had 1,247 outlets, of which 997 were franchised stores.

　　The company garnered sales of 8.75 billion yuan in the first half, compared with 15.1 billion yuan for 2002.

　　Hong kong-listed Lianhua Supermarket Holdings Co Ltd, China's largest super-market owner, said sales from its 2,259 stores reached 12 billion yuan in the first six months of this year.

　　Lianhua planned to open about 900 stores this year, including 700 convenience stores, 200 supermarkets and 10 to 15 hypermarkets.

　　As shanghai Friendship group Inc, parent of Lianhua Supermarket, and Hualian (group) Co Ltd were merged into Bailian group Co Ltd to form China's biggest com-mercial giant, the future of Hualian becomes a big issue in the industry.

　　"The possibility that Lianhua will acquire Hualian after its listing on the Hong Kong Stock Exchange be-comes very slim," Lu Ying, an analyst with Haitong Secu-rities, commented.