GOME RETAIL (00493) has released its annual results for the period ending December 31, 2025. The group reported revenue of RMB 538 million, an increase of 13.56% year-on-year. The loss attributable to owners of the parent company was RMB 5.944 billion, representing a decrease of 48.89% compared to the previous year. The loss per share was 12.6 cents. During the reporting period, the group's strategy to focus on core business and streamline operations, implemented amid debt issues that led some key suppliers to suspend shipments, resulted in a 13.50% year-on-year increase in sales revenue.
The group recorded an impairment loss on right-of-use assets of RMB 1.095 billion for the period, a significant reduction of 70.28% from the RMB 3.685 billion impairment recorded in the same period last year. This was influenced by downward pressure and an increasingly challenging environment in the domestic real estate leasing market, affected by the broader national economic situation. Considering these factors and the group's cash flow position, management reassessed the future assumptions for properties including GOME Plaza, Xiangjiang Jiuhao, and Pengrun Building (collectively referred to as "these properties"). An independent external valuer was engaged to prepare a valuation report for these assets. Key parameters used in the valuation included a pre-tax discount rate of 7% for cash flow projections (2024: 7%) and a growth rate of 1.5% for forecasting cash flows of the cash-generating units (2024: 1.6%). The valuation methodology remained unchanged from the prior period. Consequently, the group recognized an impairment of RMB 1.095 billion for these properties.
Net cash used in operating activities during the reporting period was RMB 25 million, compared to net cash used of RMB 12 million in the same period last year. This change was primarily due to fluctuations in inventory, accounts receivable, prepaid expenses, other receivables and assets, accounts and notes payable, and other payables and accrued expenses.
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