Chinese home appliances and electronics retailer Suning has announced its performance report for the first quarter of 2011, stating that from January to March 2011, the company's operating revenue increased by 23.2% year-on-year to CNY20.58 billion; and its net profit increased by 27% year-on-year to CNY1.12 billion.
By the end of the reporting period, Suning has opened 1,348 chain retail stores in 233 prefecture-level and above cities in mainland China, including 1,219 regular stores; 119 stores in counties and towns; and ten boutique stores. These 1,219 regular stores cover 249 flagship stores, 375 center stores, and 595 community stores. The combined area of Suning's chain stores has reached 5.286 million square meters.
For the Chinese mainland market, Suning entered two new city markets in the first three months of 2011 and it opened 44 new chain stores; meanwhile, it replaced and closed seven chain stores, achieving the net increase of 37 chain stores.
For the international market, Suning continued to optimize its chain network in Hong Kong and enhanced its site selection and storage in the marketplace. By the end of the reporting period, the company had signed and stored five chain stores. In addition, it assisted Laox, its subsidiary in Japan, in the opening of a new outlet. By March 2011, Suning has a total of 1,380 chain stores in mainland China, Hong Kong, and Japan.
Suning said that under its planning for the second quarter of 2011, it will accelerate the site selection and opening of new stores. It also predicted that with the stable improvement of the company, its net profit attributable to shareholders will see a year-on-year increase of 25% to 35% in the first half of 2011.