Gome Retail (00493) announced interim results, with a loss of 314 million yuan to the mother, a year-on-year decrease of 76.67%

According to the Zhitong Finance App, Gome Retail (00493) announced interim results for the six months ended June 30, 2026. The group obtained revenue of RMB 176 million (same unit), a year-on-year decrease of 40.74%; owners belonging to the parent company should account for losses of 314 million yuan, a year-on-year decrease of 76.67%; a loss of 0.5 points per share.

According to the announcement, during the reporting period, due to reduced supply from several suppliers and a sluggish sales market environment, the Group's sales revenue was 176 million yuan, a decrease of 40.74% compared with 297 million yuan in the same period last year.

For the six months ended June 30, 2026 (reporting period), Gome Retail Holdings Co., Ltd. and its subsidiaries (Group or Gome), in a complex environment where challenges and opportunities coexist, adhere to the mission vision of “Gome, Family Beauty, and Life Beauty”, focus on the main business, continue to push forward reforms and self-help around the three main strategic lines of “debt resolution, asset-light transformation, and new business cultivation”, and have made significant progress in various fields.

During the reporting period, the external economic environment was affected by international geopolitics and faced a more complex situation. Domestic economic growth was under pressure, and consumer market performance was weak. In particular, the home appliance industry faced significant downward pressure. Despite this, the group did not shrink, but continued to aggressively dispose of debt. During the reporting period, some major debts were successfully resolved through debt-for-equity swaps and asset disposal, creating favorable conditions for repairing the relationship between corporate credit and supply chain. At the same time, the Group is firmly promoting the transformation of asset-light operations centered on the franchise and franchise-like model, and is actively deploying new businesses. During the reporting period, the Group completed the acquisition of 51% of the shares of Revo Asia Pacific Industrial Co., Ltd. by issuing new shares, which is an important step in cultivating new growth momentum. The company believes that the existing infrastructure of Revo Asia Pacific Industrial Co., Ltd. will help strengthen the Group's cross-border e-commerce and supply chain capabilities, achieve efficient cross-border procurement, logistics and distribution of health products, and promote the company's sustainable growth. The move further supports the Group's strategic goal of building a resilient and diversified revenue base that reduces reliance on traditional retail categories. The company believes that the acquisition of Revo Asia Pacific Industrial Co., Ltd. has significant strategic value.

In the first half of 2026, the domestic economy started steadily, but economic growth momentum has slowed since the second quarter, the consumer market recovery fell short of expectations, and the total retail sales rate of social consumer goods fluctuated, and the durable consumer goods industry such as home appliances faced major challenges and showed an overall downward trend. The company's operations continued to be under pressure in this context. During the reporting period, the Group recorded sales revenue of 176 million yuan, a decrease of 40.74% from 297 million yuan in the same period last year. The gross profit margin was 11.74%, up 4.84 percentage points from 6.90% in the same period last year. The Group's operating expenses (including marketing expenses and management expenses) were $359 million compared to $512 million in the same period last year. Other expenses and losses were approximately $268 million compared to $622 million in the same period last year. Net financial costs were approximately $698 million compared to $968 million for the same period last year. Combining the above factors, during the reporting period, the loss attributable to the owners of the parent company of the Group was 314 million yuan, a significant improvement over the loss of 1,346 million yuan in the same period last year.

After the economic slowdown in the second quarter of 2026, the Politburo meeting of the Central Committee held at the end of July 2026 clearly proposed the need to “step up countercyclical adjustment efforts, increase efforts to expand domestic demand, optimize supply, effectively guarantee and improve people's livelihood, enhance development momentum, stimulate social vitality, promote continued economic development in a positive direction, and strive to achieve a good start to the “15th Five-Year Plan”. Group management believes that if relevant specific policies are introduced and implemented in a timely manner, it will provide confidence and impetus for the recovery of the domestic consumer market in the second half of the year, but the actual situation and recovery time remain to be seen, and the short-term operating pressure of the Group still exists.