GOME RETAIL actively resolves debts and will transfer Wuhan properties to JD.com and issue new shares to settle outstanding bonds

According to the announcement from GOME RETAIL (00493), the company issued a 5% convertible bond with a total principal amount of USD 100 million on June 30, 2020. As of the date of this announcement, the outstanding principal amount of the bond is approximately USD 73.7417 million. On March 31, 2025, the company and the seller (an indirect wholly-owned subsidiary of the company, Beijing Pengze Property Co., Ltd.) entered into an agreement with the bondholder Danube Innovation Limited to settle the bond. According to the agreement, the seller will transfer the rights to the property to the buyer (an entity established in China designated by the bondholder). The consideration for the asset transfer has been determined to be RMB 301.5 million. Upon completion of the asset transfer, the company will issue approximately 284 million new shares to the bondholder at an issue price of HKD 1.255 per share to settle the total amount of approximately USD 45.8902 million (equivalent to approximately RMB 329 million) for the remaining outstanding bond principal, accrued interest, and penalty interest. The issue price represents a premium of approximately 7282.35% over the closing price of HKD 0.017 per share on the Stock Exchange on the date of the agreement. It is reported that the property is located at No. 9, Building C, 1-4 Floors, Yinhe Shanglin Garden, 183 Xinhua Lower Road, Jianghan District, Wuhan, and includes the corresponding state-owned land use rights. The total construction area of the property is 13,047.38 square meters and is used for commercial and residential purposes. The construction of the property has been completed, and the property is currently vacant and unoccupied. The bondholder is a limited company registered in the British Virgin Islands, primarily engaged in investment holding business. It is ultimately controlled by JD.com, Inc., which is primarily engaged in e-commerce business, and its shares are listed on the Stock Exchange and NASDAQ