GOME Retail Holdings (0493) AI Stock Analysis

• Market Cap: HK$838.95M
• Dividend Yield: N/A
• Average Volume (3M): 45.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• 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: 42,152,616
• 30 Day Avg. Volume: 45,206,357
• 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

• Rating: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

GOME Retail Holdings faces significant financial challenges, with declining revenues, persistent losses, and a precarious balance sheet. The technical analysis suggests a lack of clear momentum, and the negative P/E ratio highlights valuation concerns. These factors contribute to a low overall stock score, indicating substantial risks for investors.

GOME Retail Holdings Business Overview & Revenue Model

Company Description

GOME Retail Holdings Limited, together with its subsidiaries, engages in the retail of electrical appliances, consumer electronic products, and general merchandise in the People's Republic of China. The company also sells its products online through self-operated and platform models. In addition, it is involved in the provision of logistics and procurement, storage and delivery, IT development, and business management services; retailing of mobile phones and accessories; and property holding activities. As of December 31, 2021, it operated 4,195 stores in 1,439 cities. The company was formerly known as GOME Electrical Appliances Holding Limited and changed its name to GOME Retail Holdings Limited in 2017. GOME Retail Holdings Limited was founded in 1987 and is headquartered in Central, Hong Kong.

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

GOME Retail Holdings is experiencing significant financial distress with declining revenues, persistent losses, and a deteriorating balance sheet. Negative equity and severe liquidity challenges pose substantial risks to its financial health and ability to sustain operations.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0493, the sentiment is Negative. 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	HK$53.07B	20.43	22.80%	2.82%	10.53%	-11.23%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	―	HK$2.09B	11.91	41.54%	1.50%	55.02%	25.22%
0178	―	HK$1.92B	25.00	6.39%	3.95%	-9.75%	-64.87%
9991	―	HK$1.61B	-7.97	-4.71%	―	7.51%	30.41%
0493	―	HK$838.95M	―	―	―	49.53%	22.07%

GOME Retail Holdings Corporate Events

GOME Retail Holdings Reports Improved Interim Financial Results for 2025

GOME Retail Holdings Limited reported its unaudited interim financial results for the first half of 2025, showing a significant reduction in losses compared to the same period in 2024. The company’s revenue increased from RMB 169 million to RMB 297 million, while the loss attributable to owners of the parent decreased from RMB 4,432 million to RMB 1,346 million, indicating an improvement in financial performance despite ongoing challenges.

GOME Retail Holdings Announces Upcoming Board Meeting to Review Financial Results

GOME Retail Holdings Limited has announced a board meeting scheduled for August 29, 2025, to review the company’s financial results for the first half of 2025 and discuss other business matters. This meeting indicates the company’s ongoing efforts to assess its financial health and operational strategies, which could have implications for its market positioning and stakeholder interests.

GOME Retail Implements Action Plan to Address Auditor’s Disclaimer

GOME Retail Holdings Limited has provided an update on its action plan to address the auditor’s disclaimer of opinion on its FY2024 financial statements. The company is implementing debt-to-equity swaps with major suppliers and a financial institution, negotiating restructuring agreements with convertible bond holders like JD.com and Pinduoduo, and working on renewing and extending repayment dates for secured borrowings. These efforts aim to improve the company’s financial stability, restore supply chain operations, and enhance cash flow, which are crucial for its operational recovery and market positioning.