APPLIANCE retailer Suning Appliance reported yesterday that its net profit almost doubled last year on expansion of outlets and increasing operation quality.
Net profit at the country's second-largest home appliance chain surged 93.42 percent from a year earlier to 1.47 billion yuan (US$206.46 million) and its revenue gained 53.48 percent to 40 billion yuan, the company told Shenzhen Stock Exchange.
"The company witnessed a stable growth of the sales income last year as it actively improved operation quality on stores and set up new outlets accordingly," it said. The retailer also attributed the growth to its advanced logistics platform and enhanced management efficiency.
"Suning's profit is similar to our estimation and its solid foundation will help speed up its expansion in the following years," said Jin Zefei, an analyst with Shenyin & Wanguo Securities.
Jin estimated that Suning would remain profitable to 2010 and its net profit would rise 75.3 percent this year.
The company has focused on opening new outlets as part of its development strategy over the next three years. It plans to run about 900 outlets by the end of this year across the country with 200 outlets added to its network.
The company said in an earlier report that it was planning to increase sales to eight billion yuan this year and 15 billion yuan by 2010 in Shanghai by opening more medium and large outlets.