As a condition of the past summer's public market financings totaling nearly USD$5.3m, China Electronics agreed to a net income target of USD$12 million, subject to certain adjustments, for the fiscal year ending December 31, 2010, and an uplisting to Nasdaq or the NYSE Amex exchanges.
China Electronics Holdings announced that it had 257 new stores in operation over the past 12 months. "We added 99 new exclusive franchise stores during the nine months ended September 30, 2010 compared to 2009. The exclusive franchise stores accounted for 53% of our revenues in the first nine months of 2010." Another 158 non-exclusive franchise stores opened in the past year, with the category posting 40% of CEHD's overall sales. Company-owned stores made up the balance of CEHD's revenues.
China Electronics' Guoying subsidiary is the exclusive wholesaler in the Lu'an area for products under the brand names Sony, LG, Samsung, Shanghai Shangling, Chigo, Huayang and Huangming. Guoying is the general sales agency of Sino-Japan Sanyo electronic products, such as Sanyo TVs, air conditioners, washing machines and microwave ovens. Guoying has teamed up with Huangming and Huayang, the two largest manufacturers of solar thermal products in China, to be their exclusive retail outlet in Anhui. China Electronics also produces Guoying brand refrigerators under its own trademark, selling a total of 30,000 refrigerators in 2007, 46,000 in 2008, and 62,000 in 2009, and expects to sell 77,000 in 2010 and 100,000 in 2011, in PRC provinces Anhui, Henan and Hubei.
We are engaged in the retail sale of consumer electronics and appliances in the People's Republic of China, such as solar heaters, refrigerators, air conditioners, televisions, and etc. We are targeting the rural market in Anhui Province. Approximately 56% of China's population still resides in rural areas of China, making rural residents the largest consumer group in China. After many years of economic reforms, the average income of people living in China's rural areas has gradually increased. The rural market is largely untapped and has enormous potential for growth. The rural consumer group has tremendous purchasing power and is increasing as the Chinese government encourages rural communities to modernize.
We operate 3 company owned stores, all of which are located in Lu'an City, Anhui Province. As of October 12, 2010, we also operate 458 exclusive franchise stores and 600 non-exclusive franchise stores, which are located in the rural areas around Lu'an. Approximately 3.3% of our revenues for fiscal 2009 were from the company owned stores, approximately 88.9% of our 2009 revenues were from the exclusive franchise stores and approximately 7.8% of our 2009 revenues were generated from the non-exclusive franchise stores.
Our Growth Strategies: We will develop 6-7 company-owned stores in Lu'an City with at least one store located in each major county of Lu'an such as Shucheng, Huoshan, Huoqiu and Jinzhai. A 1000-square-meter shopping mall will be established in Lu'an City in mid 2011.We plan to develop direct sales stores with total 600 direct stores in service by the end of 2011, over 20% of which will be located in Henan and Hubei provinces. The area, delivery, service quality of stores will be enhanced. We will establish franchise stores in 2011 with total of 700 franchise stores in service by the end of 2011.We will negotiate with well-known brands for sales of products of theses brands. We currently present and sell washing machines of Samsung and have achieved successful progress for partnering with Samsung to sell refrigerators, air conditioners and video-related products of Samsung. We are now in the negotiating process with other famous electric appliance manufactures for sales of their products. We also consider merger and acquisition opportunities in 2011.