Gome profit gains from network
By Pan Xiaoyi |
August 24, 2010, Tuesday
|
Print Edition
Print Edition
GOME Electrical Appliances Holdings yesterday reported its first-half net profit jumped an annual 66 percent after it improved its sales network.
Gome earned 962 million yuan (US$142 million) in the January-June period. Sales rose 22 percent to 24.9 billion yuan in the same period, it said in a statement to Hong Kong stock exchange yesterday.
Sales in the second quarter hit a record high of 13 billion yuan since Gome was listed in 2004.
The interim earnings report came as an internal tussle between the board of directors and its disgraced founder Huang Guangyu escalates. Huang, the former chairman who is serving a 14-year jail sentence, openly slammed current Chairman Chen Xiao and the management for the deterioration in Gome's business performance and for losing market share to rival Suning Appliance Co.
"Gome has entered a new round of stable growth based on improvement of same-store sales and layout," the statement said.
"It will continue to expand its presence and lift operational efficiency."
In the first six months, Gome closed 25 stores and opened 39 new ones, bringing the number of stores to 740 in China.
In comparison, Suning has 1,075 stores after adding 149 more stores in the first six months. Its profit climbed 56 percent to 1.97 billion yuan in the period.
Gome is reported to be holding a special shareholders' meeting on September 28 to discuss the issues brought up by Huang, still its largest shareholder with about 34 percent. Huang sent a letter on August 4 to the board demanding that it remove Chen and cancel its authorization to issue 20 percent more new shares.
Gome earned 962 million yuan (US$142 million) in the January-June period. Sales rose 22 percent to 24.9 billion yuan in the same period, it said in a statement to Hong Kong stock exchange yesterday.
Sales in the second quarter hit a record high of 13 billion yuan since Gome was listed in 2004.
The interim earnings report came as an internal tussle between the board of directors and its disgraced founder Huang Guangyu escalates. Huang, the former chairman who is serving a 14-year jail sentence, openly slammed current Chairman Chen Xiao and the management for the deterioration in Gome's business performance and for losing market share to rival Suning Appliance Co.
"Gome has entered a new round of stable growth based on improvement of same-store sales and layout," the statement said.
"It will continue to expand its presence and lift operational efficiency."
In the first six months, Gome closed 25 stores and opened 39 new ones, bringing the number of stores to 740 in China.
In comparison, Suning has 1,075 stores after adding 149 more stores in the first six months. Its profit climbed 56 percent to 1.97 billion yuan in the period.
Gome is reported to be holding a special shareholders' meeting on September 28 to discuss the issues brought up by Huang, still its largest shareholder with about 34 percent. Huang sent a letter on August 4 to the board demanding that it remove Chen and cancel its authorization to issue 20 percent more new shares.
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