Suning Appliance Co Ltd's net profit in the first half fell 29.11 percent to 1.75 billion yuan ($275.56 million) due to rising competition from e-commerce companies as well as store closures, according to a financial report filed to the Shenzhen Stock Exchange late Thursday.
Profits at China's largest electronics retailer declined due to the continuing impact from the government's tightening policies for the real estate industry and the rapid development of e-commerce companies, which harmed physical store sales, Suning said in the statement.
On the other hand, Suning continues to adjust its structure by shutting up more stores, it added.
Sales revenue was 47.19 billion yuan in the first half, a year-on-year increase of 6.69 percent.
Total assets were 56.48 billion yuan by the end of the first half, down 5.53 percent compared with the second half of last year. The company's asset-liability ratio dropped to 58.16 percent from 61.48 percent in the last six months of 2011.
In the first half of the year, the home appliance giant closed 74 stores in the Chinese mainland, and opened 79 outlets. It now has about 1,728 stores at home and abroad.
Founded in 1990 in Nanjing, Jiangsu province, Suning was listed on the Shenzhen Stock Exchange in 2004.
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