GOME Retail Holdings Limited (493) issued a quarterly progress update regarding its Action Plan aimed at resolving an auditor’s Disclaimer of Opinion for the 2024 financial year. The auditor raised concerns about multiple uncertainties relating to the Group’s ability to continue as a going concern.

According to the announcement, the Company remains in negotiations with major suppliers for potential debt-to-equity swaps, with no conclusive agreement reached so far. A technical service provider has agreed to convert debt into equity, and a preliminary agreement has been formed with two financial institutions involving RMB1,290 million in similar arrangements.

The Group has also reached a repayment agreement with JD.com for outstanding convertible bonds, while discussions with Pinduoduo continue for a US$200 million bond arrangement. Meanwhile, the Company is in talks with various lenders to renew existing secured borrowings, revise related covenants, and explore repayment solutions.

In terms of asset disposals, commercial properties and logistics bases in Shanghai, Xi’an, and Chengdu remain available for sale, with two potential buyers expressing interest in the Chengdu property. The Company is actively seeking additional funding, including from potential state-owned investors, although no definitive agreement has been reached.

The Board reiterates its commitment to implementing the Action Plan and intends to issue further announcements on material developments in due course.