General

GOME Retail Enters Agreements with GOME Fun and GOME Preserving to Scurry up Transformation to All-spherical Retail Ecosystem Sharing Platform; Strives to Lead “Residence Living” Alternate




HONG KONG, Nov 26, 2021 – (ACN Newswire) – GOME Retail Holdings Restricted (HKEX stock code: 493, “GOME” or “the Company”, alongside with its subsidiaries, “the Group”) launched at the moment that the Group entered into 11 agreements in barely a few change sectors, via GOME Equipment Company Restricted (“GOME Equipment”), its wholly-owned subsidiary, in admire of the continuing linked transactions of the Company with GOME Fun E-Commerce Co., Ltd. (“GOME Fun”) and GOME Preserving Group Company Restricted (“GOME Preserving”). The 11 agreements encompass renewals and original agreements. All agreements admire a term of three years initiating off from 1 January 2022 as much as and alongside with 31 December 2024 (“Contract Length”). The establishment of the agreements will give a place to the Group’s strategic transformation to an all-spherical retail eco-gadget sharing platform, step by step promote the in-depth implementation of the “Residence Living” scheme, and integrate the provision chains and assets of the Mother or father Group and barely a few contributors of the Mother or father Group to toughen the Group’s operational effectivity.

Moreover, in inform to toughen capital effectivity, completely possess the most of the ambiance pleasant investment alternatives, and facilitate the Group to make an all-spherical retail eco-gadget sharing platform, an indirect wholly-owned subsidiary of the Group entered into a RMB 900million Convertible Bond Funding Agreement with Beijing Pengrun Times Property Administration Company Restricted (“Beijing Pengrun”), which eventually holds 100% fairness interest of Anxun Logistics Co., Ltd. (“Anxun Logistics”). Please talk to the last two paragraphs of the article for more vital parts.

Steal and Provide Services and products Agreement

On bewitch and provide providers, GOME Equipment has entered into 2022 Master Merchandise Steal Agreement and 2022 Master Merchandise Provide Agreement with GOME Fun to renew the old merchandise bewitch and provide agreement. Pursuant to 2022 Master Merchandise Steal Agreement, precise via the Contract Length, GOME Fun will provide general merchandise (alongside with but no longer runt to electrical dwelling equipment and user electronics products) to GOME Equipment upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB28 billion, RMB35 billion and RMB45 billion. Pursuant to 2022 Master Merchandise Provide Agreement, precise via the Contract Length, GOME Equipment will provide general merchandise (alongside with but no longer runt to electrical dwelling equipment and user electronics products) to GOME Fun upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB30 billion, RMB40 billion and RMB50 billion, respectively.

The 2 agreements are anticipated to drastically toughen the effectivity of the Group’s procurement of products, enable both events to provide products from their very admire or the barely a few birthday celebration’s suppliers, expand the scope of procurement to counterpoint product portfolios, therefore realizing a comprehensive integration and complementation of the on-line and offline merchandise and magnificent the quiz of all doubtless clients. Moreover, the two agreements can possess sure the Group to accumulate products at the lowest payment imaginable and on better commercial phrases via GOME Equipment or GOME Fun. The blueprint would possibly perhaps additionally minimise the prevalence of shortage of products and function better payment optimization.

Logistics and Warehousing Services and products Agreement

On logistics providers, GOME Equipment has entered into 2022 Logistics Services and products Agreement with GOME Fun and GOME Preserving to renew the old logistics providers agreement. At some level of the Contract Length, GOME Preserving will provide logistics providers (alongside with provide of general merchandise to cease clients) to GOME Equipment and GOME Fun upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB900 million. On warehousing provider, GOME Equipment has entered into First 2022 Warehouse Services and products Agreement with GOME Fun to renew the old warehouse providers agreement. At some level of the Contract Length, GOME Equipment will provide warehousing providers (alongside with storage of general merchandise) to GOME Fun upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB900 million. Within the period in-between, GOME Equipment has entered into 2nd 2022 Warehouse Services and products Agreement with GOME Fun and GOME Preserving to renew the old warehouse providers agreement. At some level of the Contract Length, GOME Preserving will provide warehousing providers (alongside with storage of general merchandise) to GOME Equipment and GOME Fun upon quiz. The annual caps of the transaction amounts (excluding assign added tax) shall no longer exceed RMB900 million.

The Group’s e-commerce platform has been developed like a flash in recent years. Its gross sales community has spanned across the PRC. Within the period in-between, the Group is also expanding its bodily retailer community to the third to sixth-tier cities. Subsequently, the toughen of logistic and warehousing providers is essential to present a place to clients bewitch abilities. The three agreements will facilitate the integration of the extensive geographical community among three events and enable clients to revel in faster provide provider and better bewitch abilities which possess a obvious competitive merit of the Group. To boot to the provision to cease clients, the logistics and warehousing providers also provide intra-Group logistics retaining deliveries between warehouses, between stores and deliveries, from warehouses to stores, and so forth, providing strategic give a place to to the Group’s e-commerce and bodily retailer agencies.

Property Style Administration Carrier Agreement

On property kind management providers, GOME Equipment has entered into 2022 Property Style Administration Services and products Agreement with GOME Preserving to renew the old property management providers agreement. At some level of the Contract Length, GOME Preserving will provide property kind management providers to GOME Equipment upon quiz. The annual caps of the transaction amounts (excluding assign added tax) shall no longer exceed RMB300 million, RMB400 million and RMB500 million, respectively.

The Group owns properties in more than one areas in China that are supposed to be developed into property advanced comprising place of job structures, stores, warehouses and logistics facilities. Because the Group lacks the technical abilities and data to adjust the enchancment of such property projects whereas GOME Preserving is experienced in managing the enchancment of identical projects, therefore the agreement enables the Group to clutch GOME Preserving to offer property kind management providers to those property projects being developed by the Group.

Linked outdated Carrier Agreement

On general providers, GOME Equipment, GOME Fun and GOME Preserving admire entered into a original First 2022 Services and products Agreement and a original 2nd 2022 Services and products Agreement. Pursuant to First 2022 Services and products Agreement, GOME Preserving and GOME Fun will provide providers alongside with technical providers, platform providers, tool providers, provide chain member providers, assign-added providers, inbound advertising and marketing providers and agent operation providers, to GOME Equipment upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB8 billion, RMB12 billion and RMB15 billion, respectively. Pursuant to 2nd 2022 Services and products Agreement, GOME Equipment and GOME Fun will provide providers alongside with technical providers, platform providers and inbound advertising and marketing providers, to GOME Preserving upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB10 billion, RMB15 billion and RMB20 billion, respectively.

The 2 agreements will toughen the Group’s operational effectivity, expand its change scale, empower itself and promote commodity purchasing and selling by utilising the relevant assets, providers and barely a few give a place to of GOME Fun and barely a few sharing and joint kind platform corporations, in inform to present a place to the Group’s assign influence and toughen its gross sales and profitability. Within the period in-between, the smartly off experiences of GOME Equipment, GOME Fun and the Group in on-line and offline operation and gross sales can provide barely a few supports alongside with retailer opening, advertising and marketing, gadget providers to GOME Preserving in its agencies equivalent to dwelling decoration, dwelling furnishing, logistics and warehousing, wine industry, and so forth.

Offline Conceal Carrier Agreement

On offline inform providers, GOME Equipment, GOME Fun and GOME Preserving admire entered into a original First 2022 Offline Conceal Services and products Agreement and a original 2nd 2022 Offline Conceal Services and products Agreement. Pursuant to First 2022 Offline Conceal Services and products Agreement, precise via the Contract Length, GOME Preserving and GOME Fun will provide offline inform providers to GOME Equipment to showcase and inform its products at the Mother or father Group’s offline platforms upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB800 million, RMB1.5 billion and RMB2.5 billion, respectively. Pursuant to 2nd 2022 Offline Conceal Services and products Agreement, precise via the Contract Length, GOME Equipment and GOME Fun will provide offline inform providers to GOME Preserving to showcase and inform its products at the Group’s offline platforms upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB1 billion, RMB2 billion and RMB3 billion, respectively.

The 2 agreements provide strategic give a place to to Group’s transformation into an all-spherical retail eco-gadget sharing platform, enhance the integration of on-line and offline platform whereby all on-line products can be displayed on offline platforms in inform to offer users an on-line and offline paunchy-scene browsing abilities.

After Sale Carrier Agreement

On after gross sales providers, GOME Equipment and GOME Fun admire entered into a original 2022 After Sale Services and products Agreement. At some level of the Contract Length, GOME Equipment will provide after sale and set up providers to GOME Fun upon quiz. The annual caps of the transaction amounts (excluding assign-added tax) shall no longer exceed RMB300 million, RMB400 million and RMB500 million, respectively.

The agreement will complement GOME Fun’s after sale providers and facilitate GOME Fun to make omni-linkage retail servicing capabilities, to continuously lift excessive-quality and helpful provider abilities to users.

Convertible Bond Funding Agreement

On 26 November 2021, Ningbo Pengxin Xingyu Recordsdata Technology Co., Ltd. (the “Subscriber”), an indirect wholly owned subsidiary of the Group, entered into a Convertible Bond Funding Agreement (the “Agreement”) with Beijing Pengrun (the “Issuer”) which eventually holds 100% fairness interest of Anxun Logistics. For the time being Mr. Wong Kwong Yu, the controlling shareholder of the Company, eventually owns approximately 80.5% fairness pursuits of the Issuer via Rocket Create Investments Restricted and Beijing Wanshengyuan Property Administration Co., Ltd that are wholly-owned by him and 19.5% fairness pursuits held by the Subscriber. Pursuant to the Agreement, the Subscriber agreed to subscribe for an RMB900 million convertible bond at an charge of interest of 5% each year for a term of 5 years (the “Bond”) from the Issuer, with an possibility to expand for an additional period of two years field to mutual agreement between both events. At some level of the term of the Bond, the Subscriber has the discretion to exercise the Likelihood. Upon completion of the exercise of the Likelihood, the Subscriber will retain 30.0% of the Issuer’s fairness pursuits and the Issuer can be accounted as an associated company of the Company. The Issuer shall admire the factual to early redeem the outstanding steadiness of the Bond alongside with the pursuits accumulated at any time after the third anniversary of the wretchedness date field to the Likelihood no longer having been exercised.

The transaction will generate regular interest incomes to the Group, that can well simply expand its profitability. To boot, the Likelihood would enable the Subscriber to execute further fairness pursuits in the Issuer smartly timed in future, which in flip owns Anxun Logistics which is anticipated to function rapidly increase in some unspecified time in the future. Anxun Logistics is a nationwide built-in logistics provider provider retaining 31 provincial-level administrative areas, areas, higher than 700 prefecture-level cities and bigger than 2,800 districts and counties. It has done distribution community for higher than 42,000 fourth-tier townships across the country. Acquiring Anxun Logistics’s fairness pursuits will further enhance Group’s logistic capability, bustle up the Group’s strategic transformation in direction of all-spherical retail eco-gadget sharing platform and the implementation of the “Residence Living” scheme, which is extremely accordant with the Group’s kind route.

About GOME Retail Holdings Restricted

Founded in China in 1987, GOME Retail Holdings Restricted has been listed on the Hong Kong Inventory Alternate since July 2004 (stock code: 493) and is a leading know-how driven, abilities-essentially essentially based, entertainment-oriented and socialized “Residence Living” know-how retail provider provider. Below the guidance of the 2nd allotment of its “Residence Living” scheme, GOME promotes on-line and offline integration with Net know-how, supports novel change increase with a sturdy provide chain, introduces original change with original scenarios, develops a post-provider market with Net of Issues know-how, drives the refined operation of stores with big data, enhances market competitiveness via community optimization, and raises the retail competitive barrier with strong provider functionality, and makes all-spherical efforts to remodel from an equipment retailer to a provider of comprehensive “Residence Living” solutions. GOME will proceed to possess use of know-how and wisdom to execute “authenticity”, “bustle” and “pleasure”, and establish one in every of the most in kind platform for entertainment-oriented selling and looking out out for to gain with sharing.

Please talk to our internet voice for more data: www.gome.com.hk


Topic: Press initiating summary

Sectors: Retail & eCommerce


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