Chinese electronics retailer Gome Electrical Appliance Holdings has published its financial report for the fiscal year ended December 31, 2008, and states that its net profit decreased by 7% year-on-year to CNY1.048 billion.

 

This is reportedly the first annual net profit decrease for Gome since the company was listed in 2004.

 

The report shows that by December 31, 2008, Gome made total revenue of CNY45.889 billion, an increase of 8.03% compared with the previous year; its comprehensive gross margin increased by 1.3% year-on-year to CNY16.94; and its operating profit reached CNY1.944 billion, with a profit rate of about 4.24%.

 

By the end of 2008, Gome had 859 retail stores nationwide, an increase of 18.32% compared with the 726 stores in 2007. By distribution of sales, the revenue ratio of different regions maintained the level of the previous year. Sales from the four major cities, including Shanghai, Beijing, Guangzhou, and Shenzhen, reached CNY20.982 billion, accounting for 45.72% of the company's total revenue.

 

By the end of 2008, the total value of cash and cash equivalents held by Gome was CNY3.051 billion and the number was CNY6.27 billion at the end of 2007.

 

By the end of 2008, Gome has 48,697 employees and its labor costs, excluding salaries of directors, were CNY1.484 billion.