GOME RETAIL (ASX: 00493) has announced an agreement to purchase a majority stake in a target company.

On June 5, 2026, the company, acting as the buyer, entered into an agreement with the sellers, Mega Fortune (Hong Kong) Limited and Wing Fu Group Holdings Limited.

Under the terms of the agreement, GOME RETAIL has conditionally agreed to acquire, and the sellers have conditionally agreed to sell, the sales shares, representing 51% of the issued share capital of the target company, Leiwo Asia Pacific Industrial Limited.

The maximum consideration for the acquisition is set at RMB 41.7945 million, which is equivalent to approximately HKD 48.0052 million based on an exchange rate of RMB 1 to HKD 1.1486.

This consideration will be settled by the allotment and issue of consideration shares by GOME RETAIL to the sellers upon completion of the agreement, involving up to approximately 3.429 billion new shares.

Following the completion of the agreement, the target company will become a subsidiary of GOME RETAIL, and its financial performance will be consolidated into the group's financial statements.

The total number of consideration shares to be issued represents approximately 4.70% of the issued share capital as of the announcement date and about 4.49% of the enlarged issued share capital after the allotment and issuance, assuming no downward adjustment to the consideration under the proposed acquisition.

This proposed acquisition aligns with the company's long-term strategy to diversify its business portfolio beyond traditional electronics retail and to strengthen its position in the rapidly growing health products sector and the cross-border e-commerce ecosystem.

The target company's core competencies in cross-border online trade, brand operation services, and integrated supply chain solutions present GOME RETAIL with a unique opportunity to capture new revenue streams and enhance its digital retail capabilities.

The acquisition is viewed as a compelling strategic move to diversify the company's revenue base, bolster its cross-border e-commerce and supply chain capabilities, and tap into the fast-expanding health products category.

By integrating the target company's specialized operational expertise with GOME RETAIL's extensive retail network and brand reputation, the group will be better positioned to drive sustainable growth and create long-term value for shareholders.