Gome Retail Holdings Limited (Stock code: 493.HK, “Gome Retail” or the “Company”, together with its subsidiaries, “the Group”) announced its unaudited six-month results for the six months ended June 30, 2024 (the “Reporting Period”).
Focusing on the main industry to consolidate the border, take multiple measures to actively resolve the debt problem
In the first half of 2024, the domestic economy was affected by the severe and complex international environment and cyclical adjustments of domestic policies, and recovery was still slow. From an industry perspective, real estate market declined significantly, and the income growth of local governments and households slowed down. The home appliance industry has been affected by these factors, and the retail sales growth of all types of home appliances has slowed to varying degrees in the first half of the year. In the first half of 2024, the Group recorded revenue of approximately RMB169 million; and loss attributable to owners of the parent was approximately RMB4,432 million.
In the first half of 2024, the Group continued to focus on its core retail business, activate the “Home‧Living” omni-retail ecosystem, actively and extensively explore a variety of procurement channels and methods, and focus on the retail of home appliances, consumer electronic products, groceries and various types of daily necessities. It also promoted offline upgrades and strengthened new operating methods such as online live streaming. In addition, it accelerated the development of franchising business and the GOME Automobile Experience Hall commenced its operation, creating new growth opportunities. In respect of dealing with its debt issues, the Group has continued to divest from serious lossmaking businesses and non-core assets. Furthermore, it also disposed some of its long-term assets to settle debts, and actively negotiated with creditors for debt settlements.
Reshape the retail business, promote single store franchises, and continue to optimize and upgrade new model business strategies
Gome’s new retail model business strategy continues to be optimized and upgraded. On the one hand, Gome uses live broadcast as the fulcrum to promote the focus on its main business, tap new increments through short videos, live broadcast and other marketing models, and consolidate online business; on the other hand, the Company actively promotes single-store franchises As the core asset-light joint venture and cooperation model, we get rid of “heavy assetoperation” and open up “single store franchise” with the “light asset”, “heavy operation” and “strong management” operating model. The Company fully opens brand authorization to franchisees, focuses on supply chain model innovation, and shifts from electrical appliance franchises to all-industry franchises, quickly forming a franchise network of different models and different formats. Based on maintaining the original franchise equity cooperation, single stores are encouraged to join similar franchise equity form of cooperation.
During the reporting period, the single-store franchise joint venture cooperation model has entered the substantive operation stage and achieved rapid development, attracting the attention of many investors. At present, dozens of companies have signed contracts, and nearly a hundred companies are in the process of signing contracts.
Actively exploring new business growth curves, the GOME Automobile Experience Hallhas received enthusiastic response from the market
Gome Retail focuses on the experience of its main business, at the same time, actively thinks about changes and strives for progress, explores new growth models, and builds offline automoblie experiencehall. Gome Automobile Experience Hall is OMO’s one-stop car selection, car purchase, and car use platform with product closed-loop empowerment capabilities. It uses a solid store expansion model to empower the automoblie product market and solve the problem of individual car dealers’ purchase difficulties and expensive purchases. Meanwhile, it also ensures that consumers in various regional markets can buy new car products with clear channels, low prices and transparency, bringing consumers a new car buying experience. With its unique business model and enabling support including vehicle source channels, logistics and warehousing, Gome Automobile Experience Hall has received cooperation intentions from many well-known domestic and overseas automobile brands. During the Reporting Period, the Gome Automobile Experience Hall has started substantial operations and has received good market feedback.
Looking ahead, the government emphasized the active expansion of domestic demand, further clarified the comprehensive relaxation of real estate controls, and emphasized that “the focus of economic policies will shift more to benefiting people’s livelihood and promoting consumption.” It is believed that more positive policies will be introduced in the second half of this year to support the economy. With a steady recovery, the industry environment is expected to improve.
Gome Retail management said: “In the future, the retail industry will face more new opportunities and challenges, Gome has never forgotten its original intention of serving the people’s better life and its responsibility as a listed company. The Company’s management will still work hard, lean management, integrate resources and business collaboration, and create direct operational contributions; at the same time, we also look forward to continuing to work with more partners to empower each other and jointly help the retail industry to upgrade and iterate, to satisfy Chinese families’ pursuit of a better life.”
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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 Living”, 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
Ms Wu Xiaoyue / Ms Isla Gu
Tel:(852) 3468 8874 Fax:(852) 2111 1103
Mail:xiaoyue.wu@everbloom.com.cn/jin.gu@everbloom.com.cn
Topic: Press release summary