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Appliance Giant Profit Up 66%

GOME's first half profit soars

Chinese home appliance company GOME said on August 23 that its profits had jumped 66% in the first half of the year as the country's economy recovered from the global downturn.

The Hong Kong-listed company said it earned 962.3 million yuan (US$142 million) in the six months ended June 30, up from 580.3 million yuan in the same period last year.

GOME's revenue rose 22% to 24.87 billion yuan during the period, from 20.46 billion yuan in the first half of 2009.

The company said it had shut about two dozen "under-performing" retail stores while boosting its online retailing business.

"Following continued growth in online retailing, e-commerce will be an investment hotspot and (GOME) will seek and execute to grow the business in this area," it said.

Earlier this month, GOME announced it was seeking compensation from its former chairman, Huang Guangyu, who was jailed for 14 years for bribery and insider trading. In a writ filed at Hong Kong's High Court, Gome claimed damages against Huang -- also known as Wong Kwong-yu -- on the basis that it had suffered as a result of his alleged breaches of fiduciary duty and trust while serving as a director in 2008.

Copyright Agence France-Presse, 2010

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