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Gome Predicts Sales Boost from Acquisition
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Gome Electrical Appliances Holding Ltd, China's largest consumer electronics retailer, expects to boost its sales to 100 billion yuan (US$12.7 billion) in 2007, following its acquisition of China Paradise Electronics Retail Ltd.

"We will strive to boost the total sales of the new company to 100 billion yuan (US$12.7 billion) in 2007, while increasing the net profit to more than 2.3 billion yuan (US$291 million)," said Chen Xiao, Gome's new president and the former chairman of China Paradise. Gome said it expects sales of 80 billion yuan (US$10 billion) this year, claiming more than 10 percent of the market in China.

With the acquisition of China Paradise, Gome is also expecting to achieve an average annual growth of 40 percent by 2010 and to enhance its total sales to more than 200 billion yuan (US$25.3 billion) during the period. Gome set out this July to acquire China Paradise, the nation's third-largest home appliance retailer, facing competition from foreign retail giants such as the US-based Best Buy and Walmart Inc.

Gome and China Paradise said on November 1 that they had completed the US$675 million acquisition. Shanghai-based China Paradise has been suspended from trading in Hong Kong from November 16 and will be de-listed at the end of January.

Huang Guangyu, China's richest man as ranked by Forbes magazine, will be the board chairman of the combined company.

(China Daily November 23, 2006)

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