March 25, 2013 / 9:11 AM / 5 years ago

China's GOME posts 597 mln yuan loss in 2012, misses forecast

HONG KONG, March 25 (Reuters) - GOME Electrical Appliances Holding, backed by private equity firm Bain Capital, posted a 596.6 million yuan loss in 2012, its first yearly loss since listing in 2004, as slower economic growth, rising costs and losses in its e-commerce business took a toll.

The result compared to a 1.84 billion yuan profit in 2011, and market forecasts for a 544.2 million yuan loss, according to Thomson Reuters I/B/E/S.

GOME is trying to keep pace with its biggest rival Suning Appliance Co Ltd, but is still in the investment stage of developing an online business.

GOME, China’s second-largest home appliance retailer behind Suning Appliance Co Ltd, recorded a 90.1 million yuan profit for the fourth quarter of 2012 missing market expectations of 142.5 million yuan profit.

It had posted a 686.7 million yuan loss for the first nine months of 2012.

The company’s shares fell 2.3 percent on Monday before the earnings were announced. Its shares halved in value last year, lagging a 2.3 percent drop in the benchmark Hong Kong index . (Reporting by Donny Kwok; Editing by Jeremy Laurence)

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