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China Electronics Holdings, Inc. (CEHD.OB) Expands to Hubei Province With 8 New Stores

China Electronics Holdings Inc. is based in China’s Anhui Province. The company sells household appliances and consumer electronics of major global manufacturers through a network of more than 1,000 retail stores in rural areas of China. Its network consists of 600 franchise stores, 412 direct stores and 3 company-owned locations.

The company announced today that it has opened 8 new stores in its core rural markets and is now operating outlets in neighboring Hubei Province and Henan Province. The company operates its stores through its subsidiary, Lu’an Guoying Electronic Sales Company Ltd. Its subsidiary is the exclusive wholesaler in the region for major brands including Sony, Samsung, LG, Sanyo and others. China Electronics also produces Guoying brand refrigerators under its own trademark. It expects to sell about 100,000 of these refrigerators in 2011.

The expansion into neighboring provinces is part of China Electronics’ corporate plan. The company’s immediate goal is to add 100 new stores in the near future. This expansion will aid in its ongoing success. China Electronics should continue to benefit from China’s rural home appliance and electronics rebate program which offers consumers a 13% rebate on their purchases.

For the fiscal year ended December 31, 2009, China Electronics achieved after-tax net income of $9.7 million from $47.7 million in revenues. Its target for this year is to have net income of $12 million. The company also plans to uplist to the Nasdaq or the NYSE Amex exchanges. For further information on China Electronics, please the company’s website at chinaeletronicholdings.com

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