GOME Retail Holdings, once one of China’s leading electronics retailers, continues to reduce its holdings. 

Securities Times, citing a filing to the Hong Kong Stock Exchange, reported that its founder Huang Guangyu sold 500 million shares of Gome Retail at HK $0.1381 per share on November 14, cashing in about $8.8 million (HK $69.05 million).

On November 11, Huang disposed of 405 million shares at HK $0.1259 per share, cashing out around $6.5 million (HK $51 million).

In September, Huang and his wife, Du Juan , reduced their holdings in Gome by 1.439 billion shares. Moreover, Huang also sold a total of 2.737 billion shares in Henghai Investment and Gome Management, cashing in about $68 million (HK $531 million).

The outlet noted that since the beginning of this year, Huang has sold his stakes in the company more than ten times, with the shareholding ratio dropping from 59.94% to 37.79%.

As of November 19, Gome’s share prices have tumbled from HK$0.66 at the beginning of the year to HK $0.122, with a current market value of about $562 million (HK $4.4 billion).

According to Da Ji Yuan , Gome Retail was founded by Huang in 1987 and engaged in offline retail, internet, finance, smart home or home appliances manufacturing, real estate, financial investment, and many others. In 2004, the company was listed on the Hong Kong Stock Exchange.

Data from the interim report released in September shows that Gome Retail shut down 562 stores and opened 192 new stores in the year’s first half. The firm has also closed its business in 60 cities and towns.

Earlier this month, Gome suspended staff payments due to running out of cash. The topic “Gome stopped paying employees salaries” became the most searched on the popular Chinese social media platform Weibo .

The companies required employees to sign letters of commitment in which they acknowledge the delayed payment, “Since October 2022, I understand the company may suspend salary payment in the following six months to a year, and I am ready to go through [this] difficult time with the company.”

According to Daily Economic News, Huang Xiuhong , chair of Gome Retail Holdings, told staff during an internal meeting that the firm would not pay their wages until the end of December.

Yicai, citing a filing to the Hong Kong Stock Exchange, reported that Gome’s sales revenue in the first three quarters plunged by 55%-60% year-on-year. Moreover, the company forecasts this year’s net loss to surge by 35%-65% from last year.

Data from the interim report shows that Gome Retail owes a total of $8.1 billion (58.6 billion yuan) while it has only $332 million cash on account, of which nearly $3.2 billion are loans due this year.

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