GOME Retail : UNAUDITED RESULTS FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

GOME RETAIL HOLDINGS LIMITED

國 美 零 售 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 493)

UNAUDITED RESULTS FOR THE THREE-MONTH PERIOD

ENDED 31 MARCH 2019

The Three-Month Period Ended 31 March 2019 Financial Highlights

• During the reporting period, sales revenue of the Group was approximately RMB17,700 million, up 1.33% as compared with RMB17,468 million for the corresponding period last year
• Total gross merchandise volume ("GMV") grew by approximately 4.63% as compared with the corresponding period last year, among which GMV from ME Shop grew by approximately 205.81%, service GMV grew by approximately 32.33%, GMV from smart products grew by approximately 50.54% and GMV from new businesses such as home solution and integration of kitchen cabinets with electrical appliances grew by approximately 109.63%
• Consolidated gross profit margin (gross profit margin plus other income and gains margin) was approximately 17.26%, relatively stable as compared with 17.46% in the corresponding period last year
• Loss attributable to owners of the parent was approximately RMB87 million, as compared with a profit of RMB113 million for the corresponding period last year
• As of 31 March 2019, the Group had sufficient capital with cash and cash equivalents of approximately RMB10,526 million

In order to provide better disclosure to the financial markets and to the existing and potential shareholders of GOME Retail Holdings Limited ("GOME" or the "Company") so that they can better assess the most recent financial performance of GOME and its subsidiaries (the "Group"), the board of directors of the Company (the "Board") announces the unaudited consolidated results of the Group for the three-month period ended 31 March 2019 together with comparative figures for the corresponding period of last year. This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules").

1

CONSOLIDATED STATEMENT of profit or loss (UNAUDITED) For the three-month period ended 31 March 2019

		Three-month	Three-month
		period ended	period ended
		31 March 2019	31 March 2018
		RMB'000	RMB'000
REVENUE	17,699,961			17,468,302
Cost of sales	(15,350,579)	(14,993,189)
Gross profit	2,349,382			2,475,113
Other income and gains	706,473			575,309
Selling and distribution expenses	(2,107,019)	(2,167,732)
Administrative expenses	(603,429)	(526,217)
Other expenses	(187,246)	(142,431)
Share of losses of associates	(20,572)	(19,931)
Profit before finance (costs)/income and tax	137,589			194,111
Finance costs	(423,624)	(189,665)
Finance income	98,471			56,056
(LOSS)/PROFIT BEFORE TAX	(187,564)	60,502
Income tax expense	(18,267)	(72,808)
LOSS FOR THE PERIOD	(205,831)	(12,306)
Attributable to:
Owners of the parent	(86,740)	113,286
Non-controlling interests	(119,091)	(125,592)
		(205,831)	(12,306)

2

The Group's unaudited consolidated results for the three-month period ended 31 March 2019 have been prepared in accordance with the same accounting policies adopted by the Group as disclosed in the 2018 Annual Report and the new applicable International Financial Reporting Standards issued by the International Accounting Standards Board.

Shareholders and potential shareholders of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

GOME Retail Holdings Limited

Zhang Da Zhong

Chairman

Hong Kong, 24 May 2019

As at the date of this announcement, the Board comprises Mr. Zou Xiao Chun as executive director; Mr. Zhang Da Zhong, Ms. Huang Xiu Hong and Mr. Yu Sing Wong as non-executive directors; and Mr. Lee Kong Wai, Conway, Ms. Liu Hong Yu and Mr. Wang Gao as independent non-executive directors.

*  For identification purpose only

3