GOME RETAIL (00493) achieves a key breakthrough in market-oriented debt-to-equity conversion, helping to restore overall reputation and long-term business operations.

GMTEight announcement, on January 16, 2026, GOME RETAIL Holdings Limited (Hong Kong Stock Exchange code: 00493) announced that the company will issue new shares through specific authorization, issuing a total of 25,108,352,513 common shares to Shanghai Jinbo Ding Enterprise Service Co., Ltd. and Zhongke Taiyue Technology Co., Ltd. to resolve approximately 337 million RMB debt through debt-to-equity conversion. The issue price is HK$0.015 per share, with the new shares accounting for 34.40% of the expanded share capital. The proceeds from the issuance will be used to fully offset the corresponding debts to creditors. This transaction is subject to approval by the company's shareholders' meeting and the Hong Kong Stock Exchange. The announcement stated that this transaction will help the company partially resolve debt risks and "support the restoration of the company's overall reputation and long-term business operations." The board of directors believes that the subscription terms have been fairly negotiated and are in the overall interest of the company and shareholders, and the issuance price of the subscribed shares is fair and reasonable. By resolving debts through this market-oriented approach, GOME RETAIL's financial structure will be optimized, financial stability will be enhanced, laying a solid foundation for the company's long-term business operations.