In the first half net profit increased 13% before the results announcement, shares rose nearly 6.4%

Newspaper reporter Wang Xuejing from Shanghai

Gome (0493.HK) announced its interim results for the year ended June 30, 2005, net profit of HK $224 million 200 thousand, representing an increase of 215 million over the same period in 2004 of 4.5%. Gome said, if the deduction of the first half of last year a 20 million yuan of non core business income, net profit in the first half of this year the actual growth of 13%. Announced the results of the company's share price closed at HK $5.8, up 6.422%.

Gome's interim results are close to Citi's $230 million.

Previously, a Swiss report, although Gome strong growth in overall sales this year, but the expected 2006~2007 years sales growth will slow, mainly due to fierce competition in appliance retailer and profit margins began to decline. And the United States is expected this year, earnings growth will drop from 93% last year to $34%. But the announcement shows that turnover of HK $7 billion 812 million over the same period last year rose by 32%.

In this regard, Wong Kwong Yu said that although the first half of the gross profit margin has declined, but I hope to access the network and internal management to improve gross margin. The United States plans to open 130 stores this year, the first half of the year has opened a total of 56, is expected by the end of the total number of stores about 270. Wong Kwong Yu said that the future market share will be increased from the current 5% to 10%~15% in 2008.

Gome East China General Manager Huang Xiuhong said: "the company announced in early August the acquisition of Shenzhen e-home commercial chain Co. ltd.. At present, the acquisition has been completed, and has about 10 e-home stores will sell in the second half of the year in the company. From the point of view of the network is located in the first tier cities, the future will expand the second tier cities, which will become the company's profit growth point."

When a reporter asked Huang Xiuhong who is currently the biggest competitor in the United States, Huang Xiuhong humorously said that their competitors are the market, and that the expansion of the United States sales market share is the most important.

The reporter asked whether the Hongkong will be ready for the year after the listing will be a certain impact on the United States, Huang Xiuhong said there is no other home appliance chain will be listed in the overseas capital market news. According to the stock exchange data show that JP Morgan chase on Tuesday (August 2nd), according to the average price of HK $4.68 per share, the holdings of Gome shares, involving an amount of about $20 million 680 thousand, its holdings have risen from 4.81% to 5.08%.

Gome to 180 million yuan acquisition of the mainland appliance retailer Shenzhen e-home all rights. Shenzhen e-home mainly e-Home brand management appliance retail business, most existing stores located in Shenzhen and Guangzhou, and plans to increase the number of e-Home new stores. Shenzhen belongs to the Chinese e-home building materials group.

Gome is also the first time after the listing of the company to distribute the interim dividend, due to ample cash in the retail industry, executive director of the company said the future dividend payout ratio will be maintained at about 30% level.

As for Wong Kwong Yu's 35% stake in the United States when the United States and the United States into the listed company's private equity, the Ministry of commerce is being approved by the Ministry of Commerce, but there is no exact time, there is no plan to inject into the listed company in Hongkong.

Announcement shows that the United States at the end of June, $2 billion 163 million in cash on hand, the rate of return on assets of 11%, the rate of return on equity of 40%.