China 3C Group (CHCG) posts 1st quarter results. Down as expected..
Mr. Zhenggang Wang, Chairman and Chief Executive Officer commented, “While the first quarter was clearly a challenging period for our Company for a number of reasons including rising raw material costs, increased competition, and the severe snow storms in January that decreased store traffic and disrupted our supply chain, we were pleased to have increased our net income margin and believe that the remaining three quarters of 2008 will be more productive for our business. We were pleased to maintain Q1 general and administrative expenses as a percentage of revenue on the same level as a year ago. This is a result of our strategy for 2008 of improving efficiency and profitability per store as opposed to pursuing rapid expansion as we have in the past.
“As part of our strategy to improve profitability per store, we have decided to implement several new, higher margin concepts at our stores, including providing leasing services for products we sell, providing after sale equipment maintenance, working with a pre-owned 3C product retailer to roll out a second-hand 3C product repurchase service, and working with manufacturers to roll out zero-inventory consignment sales which can, among other benefits, decrease our inventory requirements.
It went up 5 cents on the news. I’m still long…
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