Chinese supermarket chain QKL Stores plans to expand its presence in northeast China as it forsees profit improvement in the second half.

QKL will open three new stores in Heilongjiang Province where it has stronger relationships with local vendors, it says.

Its revenue during the second quarter to June decreased by 29.1 per cent to $59 million. It also posted a net loss of approximately $1.4 million during the quarter, compared with net income of $9611 a year earlier.

However, it is optimistic it will return into profitability in the remaining two quarters.

“We are comfortable with our opportunities in the second half of the year and believe we’ll see an improvement in operating expenses and profit growth from the current quarter,” it says.

QKL closed eight stores in the second quarter, taking its total to 45 stores.