The business prospect of China's electrical appliance industry will remain fragile in the second half of 2012 as the industry grapples with rising labor and operating costs, cut-throat competition and a decline in consumer spending.
China's largest electrical appliances and consumer electronics retailer GOME Electrical Appliances Holding Ltd reported loss attributable to shareholders of about 501 million yuan ($78.9 million) in the first half of 2012, compared to the 1.25 billion yuan interim profit last year.
GOME's sales revenue tumbled 22.4 percent to 23.12 billion yuan in the same period.
GOME's bigger rival Suning Appliance Co Ltd, seen by some as China's answer to Best Buy, reported a net profit decline of 29 percent to 1.75 billion yuan in the first half of 2012. Suning also warned of weak earnings as China's economy slows. Suning's revenue was modestly up 6.7 percent to 47.19 billion yuan in the review period.
Looking ahead, GOME said it expected its business performance to improve in the second half of 2012 by riding on a multi-channel sales growth strategy and through sales network enhancement plus an e-commerce platform reinforcement.
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