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Gome posts 185m yuan Q3 net loss

(China Daily) Updated: 2012-11-20 10:27

Gome Electrical Appliances Holdings Ltd, China's No 2 home appliance retail chain operator, swung to a loss in the third quarter from a profit a year earlier due to sluggish demand, rising costs and a loss at its e-commerce business.

Gome and bigger rival Suning Appliance, seen by some as mainland's answers to Best Buy Co Inc, are being pressured by weak consumer demand that has eroded spending on appliances such as televisions, refrigerators and washing machines.

Its net loss amounted to 185.6 million yuan ($29.76 million)for the July-September quarter, compared with a 539 million yuan profit a year ago, according to Reuters' calculations based on nine-month earnings published on Monday.

Gome, which is backed by private equity firm Bain Capital, recorded a net loss of 686.7 million yuan for the nine months ended in September, against a 1.79 billion yuan profit a year earlier. Revenue fell 18 percent to 36.06 billion yuan.

Bloomberg-Reuters

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