China's Gome H1 net profit up 115 pct as e-commerce strategy blooms

SHANGHAI Mon Aug 25, 2014 12:59am EDT

SHANGHAI Aug 25 (Reuters) - Chinese electronics retailer GOME Electrical Appliances Holding Ltd said on Monday that net profit for the first half of the year climbed 115.2 percent as a successful move towards e-commerce helped the firm stretch its net profit margin.

The firm posted a net profit of 693 million yuan ($112.7 million), up from 322 million yuan in the same period a year earlier, it said in a filing to the Hong Kong exchange. Its net profit margin doubled to 2.38 percent from 1.19 percent.

Like its main rivals, GOME has been pushing increasingly online to help turn around flagging offline sales that dragged the firm into the red in 2012. GOME competes in China with firms like Suning Commerce Group Co Ltd, but online rivals such as JD.com Inc are becoming a challenge.

GOME, backed by private equity firm Bain Capital, saw H1 revenue climb 7.4 percent to 29.1 billion yuan.

The firm's shares were up 1.52 percent around at 0430GMT, outflanking the benchmark Hang Seng Index, which was down 0.2 percent.

($1 = 6.15 Chinese yuan) (Reporting by Adam Jourdan; Editing by Matt Driskill)

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