Retailing, Franchising, and Consumerism Business Intelligence in China

Chinese Electronics Retailer Continues Net Profit Surge

Chinese electronics company Gome has made investors happy with continued growth in its retail outlets in China's second-tier cities.

The company's net profit increased by 15.9% during the reporting period ended June 30, 2015.

According to the company's latest earnings report, Gome's listed company realized sales of CNY31.69 billion over the first six months of 2015, representing a year-on-year increase of 8.8%. Its consolidated gross margin was 17.7% and its total expense rate decreased by about 0.8% year-on-year to 15.5%. Meanwhile, the company's net profit attributable to shareholders reached CNY687 million, a year-on-year increase of 15.9%. In addition, the company reported adequate cash and its cash and cash equivalents were CNY10.72 billion.

From January to June 2015, Gome added 117 new stores, including 84 in the second-tier market. The company also reported individual store growth of 2.3% and the growth rate in the second-tier market was 5.3%.

In regards to its e-commerce business, Gome's listed company realized online sales increase of 151.3% compared with the same period of last year. The company actively developed mobile app, micro store, and big data, which helped it increase mobile trading by 304%.

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