Operating Performance Bottoms Out and Rebounds, Debt Resolution Achieves Breakthroughs

In 2025, the Group's overall operating performance bottomed out andrebounded, recording a total revenue of RMB 538 million, representing anincrease of 13.50% year-on-year. The loss attributable to owners of the parentwas RMB 5,944 million, a substantial narrowing of 48.89% compared with thesame period in 2024. During the period, the Group optimized resourceallocation by focusing on core operations and strengthening strategictransformation. Both selling and distribution expenses and administrativeexpenses decreased substantially, while operational efficiency improvedsimultaneously. In terms of debt resolution, the Group reached convertiblebond repayment agreements and advanced diversified arrangements such asdebt-to-equity swaps with major creditors and partners. It optimized theasset-liability structure without increasing cash flow pressure, effectivelymitigated risks at the subsidiary level, stabilized cooperative relationships withcore creditors and the supply chain, provided a replicable demonstration pathfor subsequent risk disposal, and gradually restored corporate credit.

Asset-light Transformation Gathers Pace, Regional Operations Fully Recover

The Group firmly implemented the strategic principle of Asset-light,Operation-focused, Strong Governance and Replicable, centered on the coreobjectives of Sales, Revenue and Positive Cash Flow, and built a synergisticstructure of Online Sales-oriented, Offline Exhibition-assisted under the threemain lines of Online, Offline and Supply Chain + Marketing. Throughstandardized training, supply chain empowerment and a digital managementplatform, the Group rapidly promoted the large-scale development of franchisebusiness; it innovated quasi-franchise models such as City Agency + ExternalPromoter Commission + Franchise Sub-franchise, and successfully restoredoperations in key regions including Beijing, Shenyang and Harbin. As at theend of 2025, the Group's offline stores focused on efficient operations in corecities, with resources concentrated in first-tier markets, and operating qualityimproved steadily.

New Businesses Driven by Dual Engines to Cultivate New GrowthDrivers

Based on industry trends and policy guidance, the Group actively cultivatednew growth drivers, with a key focus on the layout of instant retail and AI retail.In the instant retail sector, in response to the national policies on innovationand upgrading of the retail industry, the Group plans to launch the pilot ofGOME Instant Warehouse in first-tier cities, prime business districts andsecondary locations through an asset-light cooperation model, build acommunity instant retail network with the synergy of In-store + Home Delivery,and tap into the trillion-yuan instant retail market. In the AI retail sector, theGroup introduced an AI intelligent engine to empower the full-chain operation,and meanwhile planned to introduce AI home appliance products, buildintelligent robot experience stores, and promote the digital and intelligenttransformation of the retail business.

OUTLOOK AND PROSPECTS

The management of GOME Retail stated: Despite the hard-won progressachieved in 2025, the Company still faces challenges in fully emerging fromdifficulties and returning to steady growth. Looking ahead to 2026,management maintains a cautiously optimistic outlook and will continue to:

1. Prioritise risk resolution: Debt resolution remains a top priority formanagement. We will maintain open communication with creditors, pursuediversified solutions, and strive to fundamentally reduce financial burdens andrestore a healthy balance sheet.

2. Drive strategy execution with focus: We will steadfastly implement ourasset-light development strategy. Online, we will build a closed-loopomni-channel matrix integrating internal and external platforms, driven byblockbuster products and comprehensive traffic aggregation. Offline, we willcontinue to optimise and rapidly replicate our franchise network, with anemphasis on expanding community stores and city experience centres.

3. Actively capture policy and market opportunities: 2026 marks the first yearof the nation ’ s 15th Five-Year Plan. We will closely align with and leveragenational policies aimed at expanding domestic demand and boostingconsumption, deepening the recovery of our core retail business. At the same time, we will strategically invest resources to explore and scale newbusinesses, cultivating medium – to long-term growth momentum.

4. Strengthen lean management and synergy across the Group: We willdeepen lean management practices, optimise our cost structure, and enhancesynergies between online and offline operations and across businesssegments to improve overall operational efficiency and risk resilience.Management is confident that, with a clear strategy, disciplined execution, andthe dedication of all employees, GOME can seize the historic opportunitiespresented by the recovery and upgrading of the consumer market, overcomecurrent challenges, and steadily fulfill its commitment to creating long-termvalue for shareholders and society.

About GOME Retail Holdings Limited

GOME Retail Holdings Limited was listed on the Stock Exchange of HongKong Limited in July 2004 (Stock Code: 493). Founded in China in 1987, theGOME Group is committed to building a leading technology-driven,experience-oriented, entertainment-style and socialized home life technologyretail service provider in China. Upholding the Home · Life strategy, theGroup takes the retail of electrical appliances and consumer electronicproducts as its core business and builds a full-category closed-loop ecosystem.

For more details, please visit the Company's website: www.gome.com.hk

This press release is issued by EVER BLOOM (HK) COMMUNICATIONS CONSULTANTS GROUP LIMITED on behalf of GOME Retail Holdings Limited. For enquiries, please contact:

EVER BLOOM (HK) COMMUNICATIONS CONSULTANTS GROUP LIMITED

Ms. Julia Liang / Mr. Adonis Liang

Tel: (852) 3468 8944 Fax: (852) 2111 1103

Email: julia.liang@everbloom.com.cn / adonis.liang@everbloom.com.cn