Gome Electrical net profit rises 30%

Gome Electrical Appliances Holding’s (0493.HK) net profit rose 30% in the fist half of the year, thanks to robust consumer demand for electronic appliances and the end of a prolonged boardroom battle, the Wall Street Journal reported. Higher profit margins and lower financing costs led the Chinese electronics giant to report a net profit of US$196 million for the six months ending June 30, up from US$151 million a year earlier. The firm’s revenue increased by 20% for the same period. Strong growth came after the unexpected resignation in March of Chen Xiao, the company’s chairman, ending his long power struggle with Gome’s founder, Huang Guangyu, who is serving a 14-year prison sentence for bribery. Zhang Dazhong, the firm’s new chairman, aims to increase the number of stores to 1,600 by 2014, and expects Gome’s revenue to rise 15% annually throughout the next few years.