CHINA: Lianhua Expects Wider Loss For YTD

Lianhua Supermarket has issued a profit warning, saying it expects its net loss for the first three quarters of the current fiscal year to expand from the loss it reported last year.

The group said it expects its nine-month loss to be 20%-40% larger than that in the same period last year, attributing it to declining market demand and intensified competition of online and offline retailers, which has led to a decrease in the revenue of the company from sales of merchandise.

In fiscal 2015, Lianhua reported an operating loss of 149m yuan for the year, while sales were down 6.6% on like-for-like decline of 6.5%.