China's Suning Net Profit Up 86.08% In Q1 2010

Chinese home appliances and electronics retailer Suning has published its financial report for the first quarter of 2010, stating that the company made total operating revenues of CNY16.712 billion during the period, a year-on-year increase of 32.02% and its net profit increased by 86.08% year-on-year to CNY884 million.

Suning said that because the company placed emphasis on the development of its chain network, the number of stores in the chain increased from 819 in the same period of 2009 to 962 in 2010. During the reporting period, Suning stated that it continued to implement measures to improve the operating quality of its stores and its store image and terminal sales ability were also enhanced.

During the first three months of 2010, Suning entered two Chinese mainland cities for the first time. It opened 28 new stores during the period and replaced and closed seven stores, realizing a net increase of 21 stores. By the end of the reporting period, Suning had opened 962 chain stores in 202 cities on the mainland, with a total store area of 4.058 million square meters.

In addition, Suning completed its acquisition of Hong Kong Citicall Retail Management Limited on February 8, 2010, taking over the brand and its retail network and business in Hong Kong. By the end of the reporting period, the company had 22 chain stores in Hong Kong.

Suning predicted that with the gradual realization of its chain plan, its network will be further expanded. Meanwhile, it will improve its background platform and promote marketing transformation to ensure a stable improvement of its operating quality. In the first half of 2010, Suning expects to see an increase of between 50% and 70% for net profit attributable to shareholders of its parent company.