Related News

Home » Business » Consumer

Grants lift Suning net by almost 50%

SUNING Appliance Co's net profit jumped by nearly 50 percent last year as it benefited from the fast-growing rural market, which was fueled by government subsidies to farmers to help them buy home appliances, the firm said on Saturday.

Its earnings in 2008 were 2.17 billion yuan (US$319 million), or 74 US cents per share, a rise of 48.79 percent from the same period in 2007. The firm's revenue climbed 24.27 percent from the year before to 49.90 billion yuan, according to its statement filed to the Shenzhen Stock Exchange.

"The global financial crisis has taken its toll on consumer purchasing power, which limited the sales growth of the company," Suning said. "But we believe the household appliance market will pick up its momentum as measures to boost domestic consumption will be rolled out this year. The subsidies program is expected to generate huge demands in the home appliance sector."

The sales of home appliances and consumer electronic products rose 6 percent from 2007 to total 792 billion yuan last year, said Beijing Zhongyikang Time Market Research. The growth rate was 8 percentage points lower than that of 2007.

The Ministry of Finance said that nationwide government subsidies, designed to help rural families buy household appliances, are expected to boost spending by 1.6 trillion yuan over four years.

Suning also quickened its expansion in the countryside and now occupies a market share of 49.87 percent among retailers in second and third-tier cities compared with 46.57 percent in 2007.

Suning, which runs 812 outlets nationwide and intends to open 200 more this year, said that its logistics center in Shenyang, Liaoning Province, is scheduled to be completed at the end of this year while centers in Sichuan and Jiangsu provinces are said to be in the pipeline.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend