Unveil The Suning Appliance Co.,LTD. Based On The Financial Report

SUNING Appliance has made one miracle after another through its transformation from a private enterprise to the Chinese second large electric appliance enterprise within just fifteen years or so. While amazed at its rapid growth, we are constantly question why did SUNING grow so rapidly, and what other enterprises can learn from its development model.The extensive discussions and intense debates with respect to GOME and SUNING phenomena has opened an interesting perspective to the author and caused the formation of this paper. There exist two controversial opinions about them. Some believe that GOME and SUNING is the evil force. They use the electric manufacturers'money for free and made huge profits. This is unfair to the manufacturers. It baffles the development of Chinese manufacturing. The others believe that, electric appliances bring a great competition among manufacturers, and the competition would accelerate the improvement of the manufacturers'products and service. What's more, SUNING could collect a great sum of money for dilation in a short time, which has explored and developed a new growth path for the Chinese private enterprises. As such, SUNING shall be set as a model for other private enterprises.In the end of 2006, the government enacted a law, which is a regulation to the electric appliances'nonstandard behavior. The law may be a great strike to the cash flow of the retailer. As a result, we begin to consider that, whether the SUNING mode is benign or not, and whether the trend of rapid growing and development will last or not.This article includes three parts. The first part is an introduction of the study background, expatiating the conception and reviewing the relevant literature. The second part is case analysis. The case analysis is organized in five aspects. The first aspect is the industry analysis, analyzing the competition in the electric retail trade. Second, it looks back on the history of SUNING. In the third aspect, there's a depiction of the capital collection and exertion. The forth aspect is accounting research, making a particular study on accounting policies, accounting estimate, and important account. Fifth, it is financial analysis. To be more objective, the author has also analyzed the competitors' information. Conclusion of operating performance is drawn on the basis of the above. In the end, the author also summarizes some opinions about the future development strategy.