GOME Retail reported a narrowed net loss attributable to shareholders of RMB 0.31 billion for the six months ended 30 June 2026, sharply lower than the RMB 1.35 billion loss recorded a year earlier. The improvement was driven by substantial non-operating gains and disciplined cost control, although core revenues continued to contract.

Revenue and Profitability • Revenue fell 40.7% year-on-year to RMB 0.18 billion, reflecting curtailed supplier support and subdued appliance demand. • Gross profit held steady at RMB 20.62 million; the gross margin rose to 11.74% (1H 2025: 6.90%) on tighter cost of sales. • Other income and gains surged to RMB 1.29 billion (1H 2025: RMB 0.72 billion) largely on RMB 1.22 billion of gains from the disposal and deregistration of subsidiaries. • Selling & distribution and administrative costs fell 34.6% and 28.5%, respectively, to a combined RMB 0.36 billion, aided by staff reductions and lower depreciation. • Impairment charges on financial assets swung to a loss of RMB 0.29 billion versus a RMB 0.01 billion reversal a year earlier. • Finance costs, dominated by penalty interest on defaulted debt, remained heavy at RMB 0.70 billion, though down 27.5% year on year.

Balance Sheet and Liquidity • Cash and cash equivalents totalled only RMB 35.30 million at period-end. • Interest-bearing bank and other borrowings stood at RMB 22.59 billion, the bulk of which is in default or subject to cross-default. • Current liabilities of RMB 40.14 billion dwarfed current assets of RMB 1.86 billion, leaving a net current liability position of RMB 38.28 billion. • Total deficit widened slightly to RMB 27.04 billion. The debt-to-deficit ratio was 83.56%. • Courts have seized or frozen property, investment properties and financial assets totalling more than RMB 2.55 billion, and 624 litigation cases involving RMB 6.0 billion remain outstanding.

Capital Measures and Debt Work-Out Management advanced several restructuring initiatives during the half: 1. Debt-to-equity swaps: 25.11 billion new shares issued in March 2026 to settle RMB 0.34 billion of overdue payables. 2. Asset disposals: property sales initiated in Shanghai, Xi’an and Chengdu; one Chengdu property sale is expected to close in 2H 2026. 3. Convertible bonds: ongoing negotiations with JD.com and Pinduoduo subsidiaries to restructure or settle a combined US$274 million of outstanding bonds. 4. New equity: on 6 July 2026, GOME issued 3.43 billion shares to acquire 51% of Revoblue (Asia) Enterprise Limited, adding a health-product trading platform aimed at diversifying revenue streams.

Operational Adjustments The retailer continued its pivot toward an asset-light model built on franchising, store management and online channels. Management reported a focus on “online development, offline franchise expansion and supply-chain optimisation” to stabilise operations and restore supplier confidence.

Outlook GOME’s board acknowledged “short-term operational pressures” and cited material uncertainty over going-concern status pending successful debt restructurings, property sales and additional fundraising. The company expects supportive domestic consumption policies in 2H 2026 but remains cautious given ongoing litigation and creditor negotiations. No interim dividend was declared.