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GOME ELECTRICAL APPLIANCES HOLDING LIMITED

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(Incorporated in Bermuda with limited liability)

(Stock Code: 493) PROFIT WARNING ANNOUNCEMENT

The board of directors (the "Board") of GOME Electrical Appliances Holding Limited (the "Company", together with its subsidiaries, the "Group") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group, the Group expects to record a net loss for the year ended 31 December 2012, which is mainly attributable to a drop in the Group's sales revenue, an increase in the Group's rental expenses as well as loss incurred by the Group's e-commerce business during the year. These factors are closely linked with the negative impact on the Group's business brought about by the consumption overdrafts as well as poor consumer sentiments and confidence as a result of the China's macro economic growth slowdown and economic stimulus policies termination, coupled with the fact that the Group's e-commerce business is still at its integration and initial investment stage.
The Board wishes to remind the Shareholders and investors that, the above-mentioned information is only a preliminary estimation made by the Company, therefore it is unaudited and pending further verification. If future estimation differs materially from that set out in this profit warning announcement, the Company will provide updates on a timely basis. Investors are advised to read carefully the announcement on the Group's audited results for the year ended 31 December 2012, which is expected to be published no later than 31 March 2013.

Potential investors and the Shareholders should exercise caution when dealing in the Company's shares.

By Order of the Board

GOME Electrical Appliances Holding Limited Zhang Da Zhong

Chairman

Hong Kong, 28 January 2013

As at the date of this announcement, the Board comprises Mr. Ng Kin Wah and Mr. Zou Xiao Chun as executive directors; Mr. Zhang Da Zhong, Mr. Zhu Jia, Ms. Wang Li Hong and Mr. Cheung Leong as non-executive directors; and Mr. Sze Tsai Ping, Michael, Mr. Chan Yuk Sang, Mr. Lee Kong Wai, Conway and Mr. Ng Wai Hung as independent non-executive directors.

* For identification purpose only

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