China’s slowing economy has led China Resources Enterprises’ first quarter earnings into a 32 per cent decline.

CRE says profit in the three months to March decreased to HK$349 million ($45 million) from HK$512 million a year earlier.

Nevertheless, the company says it is optimistic it can bounce back to competitiveness.

It is combining its more than 4600 stores with Tesco’s 134 stores and 19 shopping malls in mainland China through a joint venture, which aims to become the leading multi-format retailer in Greater China.

“The slower economic growth and transformation of consumption habits in China will continue to be the challenges for the industry players. Nevertheless, we are well-equipped with comprehensive strategies to seize the opportunities,” said chairman Chen Lang.

“We will continue to execute our expansion plan, and along the way improve our operational efficiency and enhance our profitability, as well as our leading position in China’s consumer goods industry.”