GOME RETAIL has announced that on May 19, 2026, the company, along with its subsidiaries A through H, entered into an agreement with a creditor. Under this agreement, Subsidiary H is required to transfer a property to the creditor, CETC Tali Communication Technology, to settle outstanding debts owed by the debtors. The principal amount of the debt to be settled is RMB 48.04 million, plus accrued interest and related fees.

Subsidiary H is a limited liability company incorporated in China and is an indirect wholly-owned subsidiary of GOME RETAIL. Its primary business is property holding. The property in question, held by Subsidiary H, is located at Floors 1 to 5 (including the mezzanine) of the UnionPay Commercial Building at No. 153 Wenling South Road, Fengze District, Quanzhou City, Fujian Province, People's Republic of China. The total floor area of the property is approximately 6,954.28 square meters, and it is designated for commercial use.

Subsidiaries A through G are also limited liability companies incorporated in China, each being an indirect wholly-owned subsidiary of GOME RETAIL. Their main business activities involve logistics procurement services.

The company has been in negotiations with key suppliers, financial institutions, and other creditors regarding the terms of debt settlement. The creditor involved in this agreement is a creditor of the group arising from its ordinary and daily business operations.

The group anticipates that this agreement will facilitate the settlement of total debts amounting to approximately RMB 54.022 million. The execution of this agreement and the transactions contemplated under it are expected to assist the company in partially addressing its debt risks, thereby supporting the restoration of its overall creditworthiness and the long-term operation of its business.

No cash proceeds will be received by the group from this agreement or the transactions contemplated under it.