GOME Retail Holdings Limited reported a 76.67% year-on-year reduction in loss attributable to owners, narrowing to RMB0.31 billion for the six months ended 30 June 2026 (H1 2026) from RMB1.35 billion in H1 2025. The improvement stemmed chiefly from RMB1.22 billion of gains on the disposal of liquidated and deregistered subsidiaries, lower impairment charges, and reduced provisions for financial guarantees and penalty interest.

Revenue fell 40.74% to RMB0.18 billion, reflecting supplier constraints and weak demand in China’s home-appliance market. Nevertheless, gross margin widened to 11.74% from 6.90%, while selling and distribution expenses dropped 34.62% to RMB0.09 billion and administrative expenses decreased 28.46% to RMB0.27 billion.

Net finance costs remained heavy at RMB0.70 billion, down from RMB0.97 billion a year earlier, largely driven by lower penalty interest on overdue borrowings. The company recorded a pre-tax loss of RMB0.31 billion versus RMB1.37 billion a year ago.

Cash and cash equivalents contracted to RMB0.04 billion from RMB0.06 billion at end-2025. Inventories rose 27.42% to RMB0.08 billion, extending turnover to 82 days. Trade and bills payables declined 13.71% to RMB3.91 billion, though days payable lengthened to 4,934. Total interest-bearing bank and other borrowings stood at RMB22.59 billion, with the debt-to-deficit ratio at 83.56%. Negative equity widened slightly to RMB27.04 billion.

During the period GOME completed debt-to-equity swaps, issuing 21.62 billion shares to Shanghai Jinboding Enterprise Services and 3.49 billion shares to China TaiYue Technology to settle RMB0.34 billion of liabilities. The group also transferred a Quanzhou property to clear RMB0.05 billion of debt and signed a sale agreement for a Chengdu property to fund repayments. In June it issued 3.43 billion shares to acquire 51% of Revoblue (Asia) Enterprise Limited, an online health-products trader expected to diversify revenue and bolster cash flow.

Management is pursuing further creditor negotiations, asset disposals and an asset-light expansion focused on franchising and e-commerce. While expecting macro support measures to aid consumption in the second half, the company flagged continued short-term pressure from subdued domestic demand and outstanding debt challenges.