Suning Appliance Co has completed its takeover of the Hong Kong-based electrical retailer Citicall and aims to use Hong Kong as the base of its international expansion.

The Nanjing-base retailer said it has finished the integration of suppliers, inventories, assets and workforce and set up an office in Hong Kong.

Apart from the current 22 Citicall stores, Suning plans to add 10 each year in the following three years to bring the total to 50 in the city. It will bring the Suning Elite shops to Hong Kong to sell higher margin products.

Hong Kong has been a vital platform for Suning's ambition to go abroad. In June, Suning gained a controlling stake of 27.36 percent in Japan's Laox through a Hong Kong subsidiary.

The experience from the operation in Hong Kong, including international rules, laws and talents, could better prepare the company for global competition, said Zhang Jindong, chairman of Suning, in Hong Kong.

Nationwide, Suning is planning 200 stores in the first and second-tier cities, 300 outlets in lower tier ones and 20 elite stores in major cities this year. It targets at racking up 150 billion yuan in sales and runs 1,200 stores across the nation in 2010.