Gome Retail's performance in 2025 shows significant improvement, light-asset transformation takes effect, new businesses are poised for growth
Gome Retail's 2025 Performance Shows Significant Improvement, Light-Asset Transformation Takes Effect, New Businesses Poised for Growth
Gome Retail Holdings Limited (Hong Kong Stock Exchange code: $GOME RETAIL(493.HK), "Gome Retail" or the "Company", together with its subsidiaries, collectively the "Group") today officially announced its full-year results for the year ended December 31, 2025. In 2025, facing a complex external operating environment, the Group adhered to its mission and vision of "Gome, Home, Life Beauty", and precisely focused on the three strategic pillars of "debt resolution, light-asset transformation, and new business cultivation". With the support of national policies to "expand domestic demand and promote consumption", the Group's operational quality significantly improved, the effectiveness of its strategic transformation accelerated, laying a solid foundation for moving towards a recovery track.
Operating Performance Bottomed Out and Rebounded, Debt Resolution Achieved Breakthrough
In 2025, the Group's overall operating performance bottomed out and rebounded, achieving annual revenue of RMB 538 million, a 13.50% increase compared to the same period in 2024. The net loss attributable to owners of the parent company was RMB 5.944 billion, significantly narrowing by 48.89% compared to the same period in 2024. During the period, the Group optimized resource allocation around "focusing on core operations and strengthening strategic transformation", with both marketing and administrative expenses achieving substantial reductions, and operational efficiency improving simultaneously. Regarding debt resolution, the Group reached convertible bond repayment agreements with major creditors and partners, and promoted diversified arrangements such as debt-to-equity swaps, optimizing the asset-liability structure without increasing cash flow pressure. This effectively resolved risks at the subsidiary level, stabilized relationships with core creditors and the supply chain, provided a replicable demonstration path for subsequent risk disposal, and gradually restored corporate credit.
Light-Asset Transformation Accelerates, Key Regional Operations Resume
The Group firmly implemented the strategic principle of "light-asset, heavy-operation, strong-control, replicable", focusing on the core goals of "sales, revenue, and positive cash flow", and built a synergistic pattern under the three main lines of "online, offline, supply chain + marketing", characterized by "online focusing on sales, offline focusing on display". Through standardized training, supply chain empowerment, and digital management platforms, the Group rapidly scaled up its franchise business. It innovated with quasi-franchise models such as "city agency + external promoter commission + sub-franchising", successfully resuming operations in key regions including Beijing, Shenyang, and Harbin. As of the end of 2025, the Group's offline stores focused on efficient operations in core cities, with resources concentrated in first-tier markets, steadily improving operational quality.
New Businesses Driven by Dual Engines, Cultivating New Growth Momentum
Relying on industry trends and policy guidance, the Group actively cultivated new growth momentum, focusing on instant retail and AI retail. In the instant retail field, responding to national policies for retail innovation and upgrading, the Group plans to launch a "Gome Instant Warehouse" pilot in first-tier cities, prime commercial districts, and secondary locations using a light-asset cooperation model. It aims to build a community instant retail network synergizing "store-to-store + home delivery", tapping into the trillion-yuan instant retail market. In the AI retail field, the Group introduced intelligent engines to empower full-chain operations, while planning to introduce AI home appliance products, create smart robot experience stores, and promote the digital and intelligent transformation of retail business.
Outlook and Prospects
Gome Retail's management stated: "The operational improvements and transformation achievements made by the Company in 2025 were hard-won. Although we made hard-won progress in 2025, the Company still faces challenges in completely overcoming difficulties and returning to a stable growth track. Looking ahead to 2026, management maintains a cautiously optimistic attitude and will continue to:
1. Fully tackle risk resolution: Debt disposal remains one of management's top priorities. We will continue to communicate frankly with creditors, seek diversified solutions, and strive to fundamentally reduce the financial burden and reshape a healthy balance sheet;
2. Firmly advance strategy implementation: Unwaveringly execute the light-asset development strategy. Online, accelerate the construction of an "inner-domain + outer-domain" omni-channel marketing matrix, driving sales with hit products and achieving closed-loop conversion through omni-channel traffic. Offline, continuously optimize and rapidly replicate the franchise network model, focusing on expanding community stores and city experience centers;
3. Actively seize policy and market opportunities: 2026 is the first year of the national "15th Five-Year Plan". We will closely follow and utilize various national policies to expand domestic demand and promote consumption, deepen the recovery of our core retail business, while strategically investing resources to explore and expand new businesses, cultivating medium-to-long-term growth momentum;
4. Deepen lean management and synergy: Deepen lean management across the entire Group, optimize the cost structure, and strengthen the synergistic effects between online and offline channels and various business segments to enhance overall operational efficiency and risk resistance. Management believes that with a clear strategy, firm execution, and the efforts of all employees, Gome can seize the historical opportunity of consumer market recovery and upgrade, overcome current difficulties, and gradually fulfill its commitment to creating long-term value for shareholders and society."
About Gome Retail Holdings Limited
Gome Retail Holdings Limited was listed on the Hong Kong Stock Exchange in July 2004 (stock code: 493). The Gome Group was founded in China in 1987 and is committed to becoming China's leading technology-driven, experiential, entertainment-oriented, and socialized home-life technology retail service provider. Adhering to the "Home·Life" strategy, with electrical appliances and consumer electronics retail as its main business, it builds a full-category closed-loop ecosystem.
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