Chinese retailer GOME in talks with investors

By AFP

July 15, 2010 Updated May 27, 2009 at 11:22 PM CDT

Chinese home appliance giant GOME, whose former chairman is mired in graft allegations, said it was in talks with possible investors as it tries to raise funds.

The retailer said in a statement to the Hong Kong Stock Exchange late Wednesday that it was "in negotiations with potential investors."

No binding agreement had yet been reached, it said.

Shares in the company were suspended from trading in November last year after it emerged that founder Huang Guangyu, one of China's richest men, was being investigated by Beijing police.

The statement said that trading in the company's shares will continue to be suspended until further notice.

Huang is suspected of manipulating share trading in two mainland-listed companies, China's Securities Regulatory Commission said last year. He resigned from the firm in January.

In a separate statement, the firm said its first-quarter net profit fell 37 percent from a year earlier, to 322.0 million yuan (47.2 million dollars), as sales fell sharply.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.