HONG KONG, Aug 29 (Reuters) - GOME Retail Holdings Ltd , one of China’s biggest home appliances retailer, on Wednesday reported a loss in the first half, mainly due to high finance costs and the implementation of a strategic transformation plan.
The retail chain operator reported a net loss of 457 million yuan ($66.5 million), versus a 122 million yuan profit a year prior. Sales revenue fell 8.8 percent to 34.71 billion yuan from 38.07 billion yuan.
GOME, which has a market value of $2.22 billion, earlier this month said it expected first-half net loss of up to 480 million yuan.
The debt to total equity ratio, which was expressed as a percentage of total borrowings amounting to 19.17 billion yuan over total equity of 16.38 billion yuan, rose to 117.01 percent from 96.45 percent as of end-2017.
Comparable stores sales fell 6.6 percent while consolidated gross profit margin dropped to 17.32 percent from 17.83 percent in a year-ago period.
GOME said it would extend its network of stores in lower tier Chinese cities.
Last month, bigger rival Suning.Com Co Ltd reported a jump in preliminary first-half net profit to 6 billion yuan, from 291.5 million yuan a year ago, boosted by 5.6 billion yuan profit from sale of Alibaba shares.
$1 = 7.8494 Hong Kong dollars $1 = 6.8740 Chinese yuan renminbi Reporting by Donny Kwok; Editing by xxx