Laox, the electronics subsidiary of the Chinese home appliances retailer Suning, has published its report for the 2010 fiscal year, which was actually a report of nine months due to an adjustment of its reporting schedule, stating that the company lost about CNY3.86 million during the reporting period.
The report also said that the operating revenue of the company was JPY9.4 billion and its operating profit was a loss of JPY200 million.
Commenting on the performance decline, Laox said that its income contributed by foreign tourists, which were mainly Chinese customers, decreased by 40% in 2010 comparing with the previous year.
Founded in 1930, Laox was one of the top ten home appliances retailers in Japan. In August 2009, Suning acquired a 29.16% stake in Laox and become the largest shareholder. In August 2010, Suning invested additional JPY2 billion, about CNY159 million, in the Japanese retailer and its stake increased to 33.80%.
The year 2010 is the first year for Laox's three-year restructuring plan and the company once predicted that it will made JPY30 million net profit during the year. However, affected by the decrease of foreign consumers, the company ended the year in losses.
Laox said that it may still see losses in the semi-annual report in June 2011. At present, the company is considering attracting more foreign tourists by offering preferential policies.