Ctrip Forecasts 55% Plunge in 1H Profit on Price Cuts
Ctrip.com International Ltd (Nasdaq: CTRP), China's biggest online travel service provider, posted ¥974 million in revenues and ¥120 million in net profits for 1H 2012, up 17% and down 55% respectively from the same period a year ago. Promotions that pushed up advertising and marketing costs by 54% in Q2 eroded profitability. Rising administrative fees and equity compensations were also blamed for the dramatic decline in earnings. The figures were unaudited.
Gome Foresees Loss for 1H
Gome Electrical Appliances Holding Ltd (HKG: 0493), China's second largest chain store by revenue, said it might post a net loss for 1H 2012 in the wake of sagging sales and losses from its e-commerce business. The company posted a ¥1.25 billion net profit for 1H 2011. The forecast came after Goldman Sachs slashed Gome's profitability outlook between 2012 and 2014, citing increases in labor, rental, advertising and marketing expenses. Suning Appliance Co (SHE: 002024), Gome's larger rival, last week expected its 1H net profit to fall 20% to 30%.
CNR to Offer ¥2b Short-Term Bonds
China CNR Corp (SHA: 601299), a leading train maker, said it will issue ¥2 billion worth of 270-day corporate bonds on July 27, without revealing purposes. The company posted ¥18.4 billion in revenues and ¥680 million in net profits for Q1 2012.
Great Wall Motor Forecasts 30% Increase in 1H Earnings
Great Wall Motor Co (SHA: 601633, HKG: 2333) posted ¥18.29 billion in revenues and ¥2.36 billion in net profits for 1H 2012, up 28.8% and 30.3% respectively from 1H 2011 as strong SUV sales boosted performance. The figures were unaudited.
$1 = ¥6.34