Chinese appliance retailer Gome Electrical Appliances Holdings reported revenues for the first half were up significantly, even as a battle for the chairmanship escalates.
Gome has also announced it will hold a general special meeting on Sept. 28, 2010, to vote for the replacement of Gome's chairman. The scheduled vote comes in response to a requisition letter from Gome's former chairman,
Wong Kwong Yu (Huang Guangyu). Mr. Wong is currently serving jail-time for bribery and other charges.
Mr. Wong claims that the leadership of the current chairman, Chen Xiao, is causing Gome to become less competitive, and in his requisition letter, according to several media reports, nominated his sister to be chairman of the Gome board.
Judging by diverse published statements, Mr. Wong's unfavorable opinion of Mr. Chen is not shared by others within or outside of Gome. Several shareholders and members of Gome management have credited Chen with strong leadership during a period of crisis following the arrest of Mr. Wong.
ApplianceMagazine.com originally reported on the latest Gome events on August 6:
New Shareholder War Erupts at Gome Appliances.
In unaudited results for the six months ending June 30, 2010, Gome reported revenue of RMB 24.873 billion (approx. US$3.7 billion), for an increase of over the same period in 2009.
Operating profit increased 86.14% year-over-year to RMB 1.249 billion (approx $184 million); operating profit margin was 5.02% compared to 3.28% in the same period last year.
Gome closed 25 underperforming stores, opened 39 new stores, and remodeled 75 stores in the half. Same store sales in the first six months grew 24.8% year-over-year. Gome also entered into strategic cooperation with various major suppliers, including LG, Haier, and Sharp.