GOME Retail Holdings Limited (GOME Retail) has released supplementary details on its previously announced plan (5 June 2026) to buy 51% of Revoblue (Asia) Enterprise Limited, a Hong Kong-incorporated trader of health products and provider of e-commerce store-management services.
Transaction Structure • Consideration: up to RMB 41.79 million (approximately HK$48.01 million) to be settled entirely via the issuance of up to 3.43 billion new GOME Retail shares under the company’s general mandate. • Adjustment Mechanism: The consideration may be reduced if any vendor warranties prove untrue or are breached; the downward adjustment equals the recoverable damages. • Valuation Basis: An independent valuer, Mr Wu Jian of ZhongLi International Real Estate Land Assets Evaluation, appraised 100% of Revoblue at RMB 81.95 million (market approach, adjusted P/E method). The acquisition price represents 51% of this valuation. A 28.55% liquidity discount was applied to reflect the target’s unlisted status.
Target Company Profile • Core activities: (1) direct-to-consumer sales of health products via self-owned stores on TMall, JD, Douyin, Kuaishou and BabyTree; (2) wholesale supply to platform operators, complemented by third-party store-operation services covering logistics, marketing, finance and risk control. • Experience & Scale: Management team holds over 15 years’ industry experience, 10 years in cross-border trade, and services multiple overseas brands through a mature supply-chain network with bonded and regular warehouses. • FY2025 performance: Revenue of RMB 109.71 million; net profit of RMB 8.37 million; net assets of RMB 14.22 million.
Valuation Methodology • Market-based P/E multiples from four Hong Kong-listed e-commerce peers (UNQ Holdings, YesAsia Holdings, Yoho Group, Zibuyu Group) were selected. • Adjusted P/E range: 6.98 – 19.83 after normalising for profitability, asset quality, leverage and growth. • Average multiple, post-liquidity discount, underpinned the RMB 81.95 million equity valuation.
Strategic Rationale GOME Retail, whose core business centres on electrical appliances and department-store merchandise, views health products as a high-growth, high-margin category amid China’s ageing demographics. By integrating Revoblue’s cross-border sourcing, logistics and online-store management capabilities, the group aims to diversify revenue streams, boost gross margins and enhance resilience beyond traditional retail lines.
Board View After reviewing the valuation assumptions, peer selection and applied discounts, GOME Retail’s board considers the purchase price fair and in the best interests of shareholders. Completion remains subject to customary closing conditions, including confirmation of vendor warranties.