Chinese appliances retailer Suning has released its financial report for the first three quarters of 2008, which says from January to September 2008, the company's revenue increased by 39.94% to CNY39.1 billion and its net profits increased by 65.03% to CNY1.712 billion.
The report says in the first nine months of 2008, Suning opened 167 new stores, of which 15 were later replaced, so the overall increase in the number of Suning stores is 152. At the same time, the company opened its first stores in 21 prefecture-level Chinese cities. By the time when the reported was released, Suning had opened a total of 784 chain stores in 173 Chinese cities, including 106 flagship stores, 221 central stores, and 457 community stores.
During this period, Suning continued to implement its flagship store strategy, increasing the profits of individual flagship stores. At the same time, the flagship stores helped to increase the influence and income of regional stores. The report also points out that Suning had set up flagship stores in core business areas of major Chinese cities, aiming to control risks, reduce management costs, and improve the management efficiency of regional markets.
Sun Weimin, president of Suning, said that the development of Suning is based on an integrated model, including information systems, human resources, and organization management. In the current economic situation, the most important thing is to improve the company's internal operations, so as to enhance its competitive power.