Reorganize Business Segments, Inject High-Quality Assets, Gome Retail Prepare Operations & Strategies Adjustments – QNT Press Release

HONG KONG, Aug 22, 2022 – (ACN Newswire) – GOME Retail Holdings Limited (HKEX Code: 493.HK, “GOME” or “the Company”, and together with its subsidiaries, “the Group”) announced the Possible Very Substantial Acquisition and Connected Transaction on 19th, August 2022. The Company conditionally agreed to acquire the entire equity interests in Eagle Delight Properties (Overseas) Limited, aiming to inject high-quality assets at low prices and optimize the asset structure, increasing the level of return to shareholders of the Company. An application has been made by the Company to the Stock Exchange for trading in the Shares to resume from 9:00 am on 22, August 2022.

Affected by the internal and external macro environment, the capital market and the industry face uncertain risks. GOME prudently assesses the market situation, with the objective of improving future operational efficiency, the Company plans to reorganize its business segments and optimize its asset structure, use technological means to facilitate the digital transformation of the enterprise and improve the consumer service experience throughout the process, ultimately improving the profitability of the Group.

Focusing on the core business, Creating a new profit model

Household appliances segment is a traditional area of ​​strength of GOME. In this business segment adjustment, the Company will focus on its core business, with the vertical model that concentrates on retail sales of household appliances and consumer electronic products as its main business. After the adjustment, based on the Company’s years of experience in the retail field, relying on a large number of offline stores throughout the country and its existing supply chain and after-sales and other infrastructure, the Company has formed five main profit models: exhibition (offline boutique experience), marketing (online and offline omni-channel self-management + sharing supply chain), integrated solutions for home electronics products, extension …