皇冠体育app

Top Biz News

Gome predicts sales boost from acquisition

By Wang Xu (皇冠体育app Daily)
Updated: 2006-11-23 08:45

Gome Electrical Appliances Holding Ltd, 皇冠体育app's largest consumer electronics retailer, expects to boost its sales to 100 billion yuan (US$12.7 billion) in 2007, following its acquisition of 皇冠体育app Paradise Electronics Retail Ltd.

Related readings:  Gome's profit booms 46% through September  Probe clouds Gome's Q3 'profit rise'  Property:Huang plans property deal Gome chief No. 1 on rich list

"We will strive to boost the total sales of the new company to 100 billion yuan (US$12.7 billion) in 2007, while increasing the net profit to more than 2.3 billion yuan (US$291 million)," said Chen Xiao, Gome's new president and the former chairman of 皇冠体育app Paradise. Gome said it expects sales of 80 billion yuan (US$10 billion) this year, claiming more than 10 per cent of the market in 皇冠体育app.

With the acquisition of 皇冠体育app Paradise, Gome is also expecting to achieve an average annual growth of 40 per cent by 2010 and to enhance its total sales to more than 200 billion yuan (US$25.3 billion) during the period. Gome set out this July to acquire 皇冠体育app Paradise, the nation's third-largest home appliance retailer, facing competition from foreign retail giants such as the US-based Best Buy and Walmart Inc.

Gome and 皇冠体育app Paradise said on November 1 that they had completed the US$675 million acquisition. Shanghai-based 皇冠体育app Paradise has been suspended from trading in Hong Kong from November 16 and will be de-listed at the end of January.

Huang Guangyu, 皇冠体育app's richest man as ranked by Forbes magazine, will be the board chairman of the combined company.

(皇冠体育app Daily 11/23/2006 page9)