Convenience Retail Asia, a member of Fung Retailing, plans further store openings in the mainland China.

The company plans more Circle K convenience stores and will double the number of Saint Honore Cake shops in Guangzhou and other surrounding cities to approximately 80.

It says it plans to make the number of cake shops on par with the number of Circle K convenience stores to maximise store profit and achieve an economy of scale through a two-brand expansion strategy, as well as to bolster its reputation as a leading bakery operator in the market.

“Although we are once again facing challenging market conditions, we feel the group has very positive brand perceptions and a good and committed core team in place, all of which will provide a solid foundation for future network expansion and sales growth,” said CEO Richard Yeung.

The company’s net profit in 2012 rose 20.2 per cent on new stores and increase in comparable store sales.

“Both the Circle K and Saint Honore businesses have become effective cash contributors, giving the group an even stronger foundation to work with in the coming months and years despite continuing macroeconomic challenges,” said Yeung.

Convenience Retail Asia has a total of 589 stores in Hong Kong, Macau and mainland China.