Jul. 16, 2012 (China Knowledge) - Suning Appliance Co Ltd<002024>, one of the largest privately-owned electrical appliance retailers in China, announced yesterday that it expected its net profit to fall 20% to 30% in the first half of this year.
The company said in a statement its net profit was estimated at between RMB 1.73 billion and RMB 1.98 billion in the first six months.
The home appliance retailer said that the decline in net profit was due to weaker sales in the second quarter, the impact of online shopping on physical store sales and higher expenses.
The company said earlier that its net profit fell 15.3% YoY to RMB 951 million in the first quarter. Operating revenue grew 10% YoY to RMB 22.64 billion in the quarter. However, the same-store sales dropped 7.24% YoY, in part due to the exit of the government policy to subsidize the replacement of old home appliances by new ones.