Suning to become sole seller of Whirlpool products in China

Sep. 29, 2009 (China Knowledge) - Suning Appliance Co Ltd<002024>, one of the largest privately-owned electrical appliance retailers in China, announced on Friday that it has signed an agreement with Whirlpool Corp, the world's largest home appliance maker, to gradually become the sole seller of Whirlpool's products in China.

The home appliance retailer said in a statement that it aims to sell RMB 20 billion worth of Whirlpool products in the next five years. The figure includes a projected RMB 8.3 billion worth of air conditioners, RMB 5.3 billion worth of washing machines, RMB 4.75 billion worth of refrigerators, RMB 1.2 billion worth of water heaters and RMB 450 million worth of other products.

Suning is already the sole seller of Whirlpool air conditioners and water heaters in China. Both companies have agreed to expand the sole distribution rights to other Whirlpool products.

In the first half of this year, Suning realized RMB 1.27 billion in net profit, 14.89% more than in the same period of last year.

The company predicted that its net profit will see a year-on-year increase of 10% to 20% in the first nine months of this year.

Shares of Suning rose 1.87% to close at RMB 16.35 on Friday.