China's Sun Art Retail says Q1 profit rises 16%

Sun Art Retail Group Ltd, China's largest hypermarket chain in market capitalization, said on Wednesday first-quarter net profit rose 16 percent from a year earlier as it continued to expand into lower-tier Chinese cities.

Net profit rose to 1.06 billion yuan for three months ended in March, with revenue rising 12.9 percent year-on-year to 25.4 billion yuan, the company said in a filing to the Hong Kong bourse.

Sun Art, a joint venture between Taiwan conglomerate Ruentex Group and privately held French retailer Groupe Auchan SA, had said in March that it plans to open more than 50 new stores in China this year as it increasingly taps growth in less developed cities.