Gome Electrical Appliances Holding Ltd. (493), China’s second-biggest electronics retailer, slumped to its lowest level in almost three years in Hong Kong trading after forecasting a drop in first-quarter earnings.
The company expects a “significant decline” in first- quarter profit because of lower sales and a loss from its e- commerce business, it said after trading closed on April 30. The Hong Kong stock market was closed for a holiday yesterday.
Gome slid 11 percent to HK$1.24 at the close of Hong Kong trading, its lowest level since June 22, 2009. The stock has lost 31 percent this year compared with a 16 percent gain for the benchmark Hang Seng Index. (HSI)
The Beijing-based company in March reported a 6 percent drop in 2011 profit and warned that investments in its e- commerce business may hurt margins.
Gome competitor Suning Appliance Co. reported a 15 percent drop in first-quarter net income last month.
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