– Accelerate Asset-Light Transformation and Advance New Business Initiatives
HONG KONG, Apr 1, 2025 – Gome Retail Holdings Limited (Stock code: 493.HK, “Gome Retail” or the “Company”), together with its subsidiaries, “the Group”) announced its audited annual results during the twelve months ended December 31, 2024 (the “reporting period”).
Focusing on the main industry to consolidate the border, take multiple measures to actively resolve the debt problem
In 2024, domestic economic recovery is weak, with asevere and complex external international environment compounded by domestic economic and policy cycle factors. Domestic demand remained sluggish, directly impacting the industry to which our group belongs, which continued to experience a downturn. In 2024, the Group recorded sales revenue of approximately RMB 474 million; and loss attributable to owners of the parent of approximately RMB11,629 million.
In 2024, Gome Retail continued to promote strategic transformation and upgrading and actively explored new businesses. However, in the fourth quarter of 2024, the government introduced several significant stimulus policies, the Group seizes opportunities and rides on the momentum, intensified efforts in model transformation and business innovations, such as franchise and quasi-franchise models and GOME Auto. In addition, recently, an agreement has been reached with JD on the CB debt disposal plan, which will clear all CB debts within two years through asset transfers and issuing shares.
Reinventing retail business, accelerate the expansion of franchise
Gome Retail accelerates its asset-light model and builds a closed loop of “brand authorization + supply chain empowerment + digital platform”. Regarding franchising, comprehensively open brand authorizations, focus on supply chain model innovation, shift from appliance franchising to comprehensive business format investment, quickly build online and offline franchise networks at all levels. In terms of franchising, based on equity cooperation, we will focus on encouraging single-store franchising with an operating model of “light assets, heavy operations, and strong management”, and build an “online and offline” pan-home appliance and surrounding franchise network for the entire industry with the city display stores display as the core. In the future, the Group targeted to sign more than 1000 franchise agreements, striving to become a leading comprehensive service provider integrating “offline and online franchise networks + supply chain + capital chain + industry chain + service chain”.
Actively explore new business growth curves and innovate new forms of automobile distribution
During the reporting period, the company focused on its core business while seizing the development opportunities of the automobile industry and actively made strategic arrangements in the automobile distribution field. Aiming at the development pain points in the field of automobile distribution, relying on its own national channel network and business experience and other advantages, Gome is committed to creating a new industrial chain ecological benchmark for the automobile distribution industry based on cooperation and win-win results. During the reporting period, the first Gome Smart Car Experience Hall, located in Xibahe, a prime location in Beijing, is ready to go. It will bring together about 30 new energy vehicle brands to create a large-scale, comprehensive automobile consumption scene that integrates display, experience.
Looking ahead, the Central Economic Work Conference at the end of 2024 has made it clear that a dual easing policy of fiscal, monetary and fiscal policies will be adopted in 2025, and the introduction of ?extraordinary counter-cyclical adjustments?. This represents the most proactive policy stance in recent years. Furthermore, 2025 marks the final year of the 14th Five-Year Plan, and governments at all levels will need to ensure the completion of key economic targets. Gome Retail management said: ?During the Reporting Period, the Group took solidsteps toward its strategic goals of light-asset expansion and technology-driven upgrades, achievingencouraging results in new business initiatives. Moving forward, the Group will continue to persevere, work hard, strive to turn the situation around and overcome difficulties. Under the positive influence of external policies, 2025 will likely see the largest-scale policy benefits in recent years. With the implementation of intensified domestic demand stimulus policies, the Group is expected to gradually return to the track of stable operation.?
About GOME RETAIL HOLDINGS LIMITED
GOME RETAIL HOLDINGS LIMITED was listed on the Hong Kong Stock Exchange in July 2004 (Stock Code: 493HK). Founded in 1987 in China, GOME is committed to building China’s leading technology-based, experiential, entertainment-oriented and socialized home-life technology retailer. With the strategy of “Home-Life”, Gome Group focuses on retailing of electrical appliances and consumer electronics products, and builds a closed-loop ecosystem for the entire product line.
Please visit our website for more information: www.gome.com.hk
Issued by EVER BLOOM (HK) COMMUNICATIONS CONSULTANTS GROUP LIMITED for and on behalf of GOME Retail Holdings Limited. For further information, please contact:
EVER BLOOM (HK) COMMUNICATIONS CONSULTANTS GROUP LIMITED
Mr Matthew Li / Ms Isla Gu
Tel:(852) 3468 8874 Fax: (852) 2111 1103
Maill: matthew.li@everbloom.com.cn / jin.gu@everbloom.com.cn