Suning Surges Ahead With 70% Profit Rise

Suning Appliance Co, China's biggest electronics retailer by market value, posted a 70-percent increase in first-half profit after opening more stores.

Net income rose to 1.1 billion yuan (US$161 million) from a revised 646 million yuan a year earlier, the company said in a statement to the Shenzhen Stock Exchange yesterday. Sales went up to 25.9 billion yuan from 18.8 billion yuan from last year.

Higher wages in China allowed more consumers to buy air conditioners during the summer and buy bigger televisions to watch the Beijing Olympics, boosting revenue for Suning and rival Gome Electrical Appliance Holdings Ltd, Bloomberg News said.

China's retail sales last month rose 23.3 percent, the fastest pace since at least 1999. Suning's shares rose 1.6 percent to 40.71 yuan on the Shenzhen Stock Exchange yesterday.