Gome Retail announced that on May 28, 2024, the company will issue 128,640,000 exchange shares to bondholders at a price of HK$1.24 per share to settle bonds with a principal amount of RMB 145,000,000 (approximately US$20,422,000). The share exchange accounts for about 0.27% of the company's current issued share capital. The issue price is a premium of about 3547.06% over the closing price of HK$0.034 on May 28. The issuance of shares for exchange does not require shareholders' approval and is carried out under the general authorization granted to the directors at the shareholders' meeting. After the issuance was completed, the shareholding ratio of Mr. Wong and those acting in concert fell from 10.96% to 10.93%, bondholders' shareholding ratio was 0.27%, and the shareholding ratio of other public shareholders was reduced from 89.04% to 88.80%. The purpose of this issuance is to settle part of the issued bonds. The company will not collect cash proceeds from the issuance, and will continue to negotiate the settlement of the remaining outstanding bonds and accrued interest with bondholders.