China Electronics Holdings Inc. sells household appliances and consumer electronics of major manufacturers through a network of more than 1,000 retail stores under the Guoying brand in rural, fourth and fifth tier markets. With 56% of China’s population still residing in rural areas, rural residents are the biggest consumer group in China.
The company recently announced that it opened four new stores in its core rural market of Anhui Province and is operating outlets in neighboring Henan Province. These stores in the city of Gushi have expanded China Electronics for the first time outside of its home market of Anhui Province. The stores will again be operated under its subsidiary, Lu’an Guoying Electronic Sales.
In its most recent fiscal year ended December 31, 2009, China Electronics achieved after-tax net income of $9.7 million and revenues of $47.7 million. For the three months ended March 31, 2010, the company reported $4.7 million in after-tax income. The company will be reporting results for the second quarter of 2010 with the filing of an amended 8-K shortly.