GOME RETAIL (00493) announced its interim results for the six months ended June 30, 2025. The group recorded revenue of RMB 297 million, representing a year-on-year increase of 75.74%. Gross profit reached RMB 20 million, up 11.11% year-on-year. The loss attributable to shareholders narrowed by 69.63% year-on-year to RMB 1.346 billion, with a loss per share of 2.8 cents.
In the first half of 2025, China's domestic economic growth met expectations, with continued policy support. Stimulus measures in the consumer sector, including trade-in programs and equipment upgrades, were extended and expanded, promoting accelerated growth in durable goods consumption such as home appliances. The industry is showing initial signs of bottoming out and recovery.
The group capitalized on policy tailwinds, accelerating efforts in transformation projects including franchise model innovation and automotive experience halls, as well as emerging businesses, achieving progress across various initiatives during the reporting period. Debt resolution work progressed in an orderly manner with significant advancement during the period, establishing a solid foundation for sustainable operations going forward.
Despite experiencing extremely challenging periods in recent years, management has remained proactive and never relented in their efforts. Through continuous dedication, the group achieved its first performance recovery during the reporting period and made substantial progress in strategic transformation and new business exploration. In the second half of the year, the company will continue to work with full commitment, striving to emerge from difficulties as soon as possible and create conditions for further recovery.
Looking ahead, the group will steadfastly and continuously advance three core initiatives: actively implementing debt resolution, accelerating the expansion of asset-light models, and focusing on cultivating new growth drivers.
Regarding debt management, management will fully promote consensus-building with major creditors on resolution plans and their implementation, setting a demonstrative effect for other creditors. For asset-light franchise and franchise-like businesses, the group aims to quickly become an industry-leading comprehensive service provider integrating "online and offline franchise networks + supply chain + capital chain + industrial chain + service chain" through three main business lines: online development strategy, offline development strategy, and supply chain development strategy.
In terms of new businesses, the group will continue to advance the GOME Auto Market project and actively explore new ventures that align with national strategies and the company's development path.
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