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PR Newswire
25-07-2012, 10:15 AM
PROFT WARNING ANNOUNCEMENT
"The board of directors (the “Board”) of the Company wishes to inform the shareholders of the Company (the “Shareholders”) and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group, the Group expects to record a net loss for the six months ended 30 June 2012, which is primarily due to a drop in the Group’s sales revenue and loss attributable to the Group’s e-commerce business."
Full announcement here: http://www.hkexnews.hk/listedco/listcone...724149.pdf
GOME's poor financial performance continues, with the company now slipping into a net loss for the first six months of the year. The price war continues among the big box retailers in China in both the online and offline spaces. Since Taobao and 360buy.com (the two main online retailers in China and competitors to traditional retailers like Suning and GOME) are not listed entities, it is hard to say how they are faring, but suffice to say, even Alibaba.com, the parent of Taobao reported lower profits and margins for 1Q 2012. Let's wait and see the financial reports of Suning and perhaps, any press releases from Taobao and 360buy.com, the latter who is rumored to be ramping up publicity as part of plans to seek a public listing soon.
If all the big-box and online retailers are reporting lower revenues, then it would be worrying for those counting on Chinese consumer spending to spur growth in China.
"The board of directors (the “Board”) of the Company wishes to inform the shareholders of the Company (the “Shareholders”) and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group, the Group expects to record a net loss for the six months ended 30 June 2012, which is primarily due to a drop in the Group’s sales revenue and loss attributable to the Group’s e-commerce business."
Full announcement here: http://www.hkexnews.hk/listedco/listcone...724149.pdf
GOME's poor financial performance continues, with the company now slipping into a net loss for the first six months of the year. The price war continues among the big box retailers in China in both the online and offline spaces. Since Taobao and 360buy.com (the two main online retailers in China and competitors to traditional retailers like Suning and GOME) are not listed entities, it is hard to say how they are faring, but suffice to say, even Alibaba.com, the parent of Taobao reported lower profits and margins for 1Q 2012. Let's wait and see the financial reports of Suning and perhaps, any press releases from Taobao and 360buy.com, the latter who is rumored to be ramping up publicity as part of plans to seek a public listing soon.
If all the big-box and online retailers are reporting lower revenues, then it would be worrying for those counting on Chinese consumer spending to spur growth in China.