According to the semi-annual report of Chiense electronics retailer Gome, although affected by the May 12 earthquake in the second quarter of 2008, the company still made net profits of CNY1.15 billion in the first half of 2008, a nearly double increase compared with the same period of 2007.
By June 30, 2008, the revenue of Gome Electrical Appliance was about CNY24.874 billion, a year-on-year increase of 17.57%; the gross profit was CNY2.375 billion, a year-on-year increase of 22.3%; the operating profit was CNY1.272 billion, a year-on-year increase of 42.28%; and the net profit was CNY1.15 billion, a year-on-year increase of 191.14%.
In the first half of 2008, Gome opened its first stores in 16 Chinese cities and the total number of its newly opened stores was 102. By June 30, 2008, the retail network of Gome had covered 198 cities with 828 stores and a total business area of 2.96 million square meters. These statistics show that store expansion is still a major development model for Gome.
Chen Xiao, president of Gome Electrical Appliance, says that Gome's future development focuses are to enhance chain development ability and to increase the quality and service level of its stores. The company will further strengthen the management of its flagship stores, extent these flagship stores to the second-tier market, and gradually complete the network of the second-tier market. At the same time, Gome will intensify the building and the effective use of the communication functions of its call center and continue to implement its faithful services.