Suning Appliance's net profit exceeded 4 billion yuan last year, an increase of 38.8%

Suning Appliance today announced its 2010 annual results forecast, with total revenue of 75.505 billion yuan, an increase of 29.51% over the same period last year; net profit of up to 4.011 billion yuan, an increase of 38.80%.

The data also shows that in the whole year of last year, Suning’s main business income, operating profit, and total profit increased by 30.14%, 40.07%, and 37.59% over the same period of the previous year. In addition, the total assets of Suning Appliance reached 43.9 billion yuan at the end of last year, with net assets of 18.338 billion yuan, net assets per share of 2.62 yuan; earnings per share of 0.57 yuan, an increase of 32.56%; net asset yield of 24.47%, a year-on-year decrease of 3.97 %.

Suning Appliance attributed this performance to the deepening implementation of a series of domestic demand policies for home appliances and other markets in China in 2010, as well as the benefits of upgrading products.

In 2010, Suning entered 31 prefecture-level cities in China, opened 396 new chain stores, closed down and replaced 26 companies, and added 370 companies. In addition, Suning is also cautiously developing overseas markets, such as opening 8 new stores in Hong Kong, closing and replacing 7 companies, a net increase of 1; the company assisted Japan to open 4 new LAOX, close/replace one, net Increase 3 homes.

As of the end of last year, the total number of stores in Suning Appliance has reached 1,342, including 1,311 in mainland China, 23 in Hong Kong, and 8 in Japan. The sales revenue of the comparable storefronts (calculated on the same day as the opening date of the Mainland on January 1, 2009) increased 15.97% year-on-year.

Last week, Sun Weimin, vice chairman of Suning Appliance, said at the first anniversary of Suning's online launch that in 2011, the company will open 370 new stores, with a total of 1,700 stores at the end of the year. The president of Gome, Wang Junzhou, said that the Gome Group currently has 1,400 stores, 400 new stores in 2011, and 1,800 by the end of the year.

The above Gome data includes non-listed stores. Gome’s fourth-quarter performance last year has not yet been announced. The financial results in the first three quarters of 2010 showed that Gome's revenue for the first three quarters was less than 70% for Suning, and its net profit was only about half of that. However, GOME, which has experienced the contradiction between its major shareholder and the board of directors, has resumed a stable business situation, and its “two-person turnaround” with Suning Appliance will continue to be staged.