Hong Kong listed supermarket operator Lianhua Supermarket Holdings has warned shareholders of a looming loss.
In a stock exchange announcement, Lianhua has projected a net loss ranging from RMB450 million ($68.2 million) to RMB500 million for the year to December 31.
That compares to an audited net profit of RMB31,000 for the previous year.
Lianhua says the expected loss is mainly attributable to the slowdown in China’s economic growth, the impact of eCommerce on the traditional retail industry, and a change in consumer behaviour. This led to a “significant” drop in sales and a “substantial” decrease in investment income.
The warning announcement is based on a preliminary assessment of accounts, which have yet to be reviewed and audited. The results for the year are expected to be released in March.