GOME warns of loss

This is partly because of the Group’s e-commerce business which is at its initial investment stage.

Based on a preliminary review of the Group’s unaudited consolidated management accounts, GOME Electrical Appliances Holding Limited and its subsidiaries expect to record a net loss within the range of approximately RMB600 million and RMB700 million for the nine months ended 30 September 2012.

Meanwhile the unaudited interim result for the six months ended 30 June 2012 recorded a net loss of RMB501 million, and the third quarter result for the three months ended 30 September 2012 would be expected to record a net loss within the range of approximately RMB100 million and RMB200 million.

This is mainly attributable to a drop in the Group’s sales revenue, an increase in the Group’s staff and rental expenses as well as loss incurred by the Group’s e-commerce business. The announcement said these factors are closely linked with the negative impact on the Group’s business brought about by the consumption overdrafts as well as poor consumer sentiments.