GOME Retail Holdings (0493) AI Stock Analysis

• Market Cap: HK$745.74M
• Dividend Yield: N/A
• Average Volume (3M): 71.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: 49.53%
• EPS Growth: 22.07%
• Country: HK
• Employees: 606
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.03
• Shares Outstanding: 47,891,080,000
• 10 Day Avg. Volume: 93,434,121
• 30 Day Avg. Volume: 71,239,335
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.05
• Price to Sales (P/S): 1.87
• P/FCF Ratio: -61.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.02 ▼(-25.00% Downside)

The score is primarily held down by very weak financial performance—persistent losses, negative equity, and negative/zero operating and free cash flow—signaling substantial solvency and liquidity risk. Technical indicators provide some offset with improving momentum above key moving averages, but valuation support is limited because earnings are negative and no dividend yield is provided.

Positive Factors

Omnichannel Retail Presence

GOME's combined brick-and-mortar and online footprint gives broad customer reach across China, diversifying revenue sources and reducing channel concentration risk. Over the medium term this supports stable sales capture, higher inventory turnover and resilience to shifts toward e-commerce.

Logistics & Distribution Network

A wide logistics and distribution network lowers fulfillment times and per-unit costs, supporting margin sustainability and faster store replenishment. Structurally, this operational scale creates durable efficiency advantages versus smaller rivals and aids consistent customer service delivery.

Manufacturer Partnerships

Strategic ties with manufacturers that enable exclusive products and promotions can create differentiated assortments, improve supplier terms, and drive repeat traffic. Over months these relationships support customer loyalty and potential margin improvement on exclusive offerings.

Negative Factors

Negative Shareholders' Equity

Negative equity reflects a weakened capital base and elevated solvency risk, constraining access to debt and equity financing. Over the medium term this reduces strategic flexibility, increases refinancing or covenant pressures, and raises the probability of asset sales or dilution to restore capital.

Weak Cash Generation

The inability to generate positive operating and free cash flow undermines liquidity and forces reliance on external funding. Persistently negative cash flows limit spending on working capital, store upkeep, and digital investment, increasing refinancing risk and reducing capacity to pursue growth initiatives.

Persistent Profitability Decline

Steep multi-year revenue declines coupled with negative EBIT/EBITDA and net margins indicate the core retail model is not generating sustainable profit. Continued losses erode competitive positioning by limiting reinvestment, marketing and price competitiveness, risking further market share decline.

GOME Retail Holdings Business Overview & Revenue Model

Company Description

GOME Retail Holdings Limited (stock code: 0493) is a leading Chinese electronics and home appliance retail chain headquartered in Beijing. The company operates a vast network of retail stores across China, specializing in the sale of consumer electronics, home appliances, and related products. GOME provides a wide range of items, including smartphones, televisions, refrigerators, and other household appliances, catering to both individual consumers and businesses. In addition to its brick-and-mortar stores, GOME has established a strong online presence, allowing it to serve a broader customer base in the rapidly evolving e-commerce landscape.

How the Company Makes Money

GOME Retail Holdings generates revenue primarily through the sale of consumer electronics and home appliances in its retail stores and online platform. The company operates on a retail margin model, purchasing products from manufacturers and wholesalers at wholesale prices and selling them to consumers at marked-up prices. Key revenue streams include in-store sales, online sales, and after-sales services such as installation and maintenance. Additionally, GOME has formed strategic partnerships with various manufacturers and brands, enabling it to offer exclusive products and promotions, which can drive sales and enhance customer loyalty. The company's extensive logistics and distribution network also plays a crucial role in optimizing operational efficiency and reducing costs, further contributing to its profitability.

GOME Retail Holdings Financial Statement Overview

Summary

Income statement reflects steep multi-year revenue decline with negative EBITDA/EBIT and net margins, the balance sheet shows negative equity (elevated solvency risk), and cash flows deteriorated to negative/zero operating and free cash flow in 2024—indicating severe financial distress and liquidity pressure.

Income Statement

GOME Retail Holdings has faced significant challenges in recent years, with a consistent decline in revenue from 2019 to 2024. The company reported negative EBIT, EBITDA, and net income margins across the board, indicating ongoing profitability issues. Particularly concerning is the drastic drop in revenue and increased losses in 2024 compared to previous years.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity in recent years, indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt level is concerning. Overall, the company's financial stability appears weak, with liabilities significantly exceeding assets.

Cash Flow

Cash flow analysis shows a worrying trend, with operating, investing, and free cash flows turning negative or zero in 2024. The inability to generate positive operating cash flow and free cash flow in recent periods highlights severe liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	601.28M	473.82M	646.90M	17.44B	46.48B	44.12B
Gross Profit	76.18M	73.68M	174.24M	1.82B	5.51B	4.55B
EBITDA	891.15M	-906.32M	-5.44B	-4.59B	-3.78B	-1.91B
Net Income	-8.54B	-11.63B	-10.06B	-19.96B	-4.40B	-6.99B
Balance Sheet
Total Assets	20.17B	21.13B	29.98B	42.58B	80.92B	70.49B
Cash, Cash Equivalents and Short-Term Investments	353.19M	293.11M	369.42M	598.06M	5.32B	10.01B
Total Debt	23.38B	23.22B	24.80B	28.24B	36.42B	41.75B
Total Liabilities	42.20B	41.75B	39.24B	42.09B	63.34B	69.23B
Stockholders Equity	-17.64B	-16.24B	-4.96B	4.76B	21.60B	4.92B
Cash Flow
Free Cash Flow	-53.20M	-14.54M	1.07B	211.15M	272.02M	447.64M
Operating Cash Flow	-56.16M	-11.61M	1.11B	820.73M	648.70M	1.85B
Investing Cash Flow	157.28M	252.69M	373.09M	-167.91M	-1.98B	-977.91M
Financing Cash Flow	-80.13M	-257.87M	-1.59B	-4.73B	-3.87B	592.83M

GOME Retail Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0493, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0493.

GOME Retail Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9896	68 Neutral	HK$45.54B	19.49	20.87%	3.18%	13.14%	-19.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	61 Neutral	HK$1.47B	8.39	41.54%	1.89%	55.02%	25.22%
0178	56 Neutral	HK$1.83B	19.34	8.44%	4.75%	-3.18%	-36.46%
9991	46 Neutral	HK$1.29B	-5.65	-5.29%	―	5.91%	9.24%
0493	43 Neutral	HK$745.74M	-0.08	―	―	49.53%	22.07%

GOME Retail Holdings Corporate Events

GOME Retail Advances Debt Restructuring to Tackle Auditor’s Disclaimer and Liquidity Strain

GOME Retail Holdings is pushing ahead with an action plan to address an auditor’s disclaimer of opinion on its 2024 financial statements, centred on alleviating going-concern risks by restructuring its debts and shoring up liquidity. The company has signed subscription agreements to convert roughly RMB336.8 million of debts owed to Shanghai Jinboding and China TaiYue Technology into equity, a move that eases immediate cash flow pressure, optimises its asset–liability profile and helps stabilise relationships with key creditors and technical service partners, though completion remains subject to shareholder approval and other conditions. It has also finalised a repayment agreement with JD.com on outstanding convertible bonds and is progressing with related asset transfers, while Pinduoduo is conducting due diligence on a list of assets proposed for settling its US$200 million of convertible bonds as part of ongoing restructuring talks. Management is using these debt-to-equity swaps as a demonstration case to persuade other financial institutions and suppliers to accept similar solutions or alternative repayment arrangements, but negotiations are still in early stages and the group’s supply chain has not yet been fully restored, underscoring continued operational and financing risks for stakeholders.

The most recent analyst rating on (HK:0493) stock is a Sell with a HK$0.01 price target. To see the full list of analyst forecasts on GOME Retail Holdings stock, see the HK:0493 Stock Forecast page.

GOME Retail Moves to Swap Over RMB336 Million Debt for Equity via Massive Share Issue

GOME Retail Holdings has entered into two conditional subscription agreements to issue a total of 25.1 billion new shares at HK$0.015 per share under a specific mandate, primarily to settle existing indebtedness to two creditors. Under Subscription Agreement A, the company will allot 21.62 billion shares to Subscriber A (via a nominee) in exchange for the discharge of RMB290 million of debt, while under Subscription Agreement B it will issue 3.49 billion shares to Subscriber B to extinguish a further RMB46.8 million of liabilities. The company will seek shareholder approval at a special general meeting, with voting by poll and no shareholders currently required to abstain, and will apply for listing approval of the new shares from the Hong Kong Stock Exchange. The transactions, which remain subject to conditions precedent and may or may not proceed, form part of GOME’s efforts to reduce its debt burden through equity conversion, potentially easing liquidity pressures but also leading to significant share dilution for existing investors.

The most recent analyst rating on (HK:0493) stock is a Sell with a HK$0.01 price target. To see the full list of analyst forecasts on GOME Retail Holdings stock, see the HK:0493 Stock Forecast page.

GOME Retail Announces Key Management Changes

GOME Retail Holdings Limited has announced changes in its leadership, with Mr. Albert Szeto stepping down as Company Secretary, Authorised Representative, and Process Agent, effective January 1, 2026. He will be succeeded by Mr. Philip Cheung, who brings over 20 years of auditing, accounting, and corporate governance experience, enhancing the company’s compliance mechanisms and operational expertise.

The most recent analyst rating on (HK:0493) stock is a Hold with a HK$0.02 price target. To see the full list of analyst forecasts on GOME Retail Holdings stock, see the HK:0493 Stock Forecast page.