GOME Electrical Appliances : INSIDE INFORMATION PROPOSED ISSUE OF DOMESTIC CORPORATE BONDS BY GOME APPLIANCE COMPANY LIMITED A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

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GOME ELECTRICAL APPLIANCES HOLDING LIMITED

國 美 電 器 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 493)

INSIDE INFORMATION PROPOSED ISSUE OF DOMESTIC CORPORATE BONDS BY GOME APPLIANCE COMPANY LIMITED A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

This announcement is made pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of GOME Electrical Appliances Holding Limited (the "Company", together with its subsidiaries, the "Group") announces that China Securities Regulatory Commission (中國證券監督管理委員會) ("CSRC") has approved the application of GOME Appliance Company Limited (國美電器有限公司), a company established in the People's Republic of China (the "PRC") and a wholly-owned subsidiary of the Company (the "Issuer") for the proposed issue of domestic corporate bonds of up to RMB5,000,000,000 (the ''Domestic Bonds'') to qualified investors in tranches.

The Domestic Bonds will be issued in tranches. Issue of the first tranche of the Domestic Bonds shall be completed within 12 months from the date of the approval and the issue of other tranches of the Domestic Bonds shall be completed within 24 months from the date of the approval. The total issuance amount is RMB5,000,000,000. The Issuer plans to issue the first tranche of the Domestic Bonds ("The First Tranche of Domestic Bonds ") of the principal amount not less than RMB2,000,000,000 in January 2016 (the "Proposed Issuance"). Dongxing Securities Co., Limited* (東興證券股份有限公司) has been appointed as the lead underwriter of the Proposed Issuance. With the consideration of the current market position, the Company will determine whether it will further issue the Domestic Bonds. And detailed arrangements (if applicable) with respect to the actual issue of the Domestic Bonds will be announced by the Company as and when appropriate.

The proceeds from the issue of the Domestic Bonds are expected to be used for the general working capital of the Issuer, including but not limited to expansion of store network and e-commerce business of the Issuer, development of the Issuer's logistic and after-sales service platforms, optimization of internal management system and the upgrade of ERP system.

In accordance with the relevant rules and regulations in the PRC, relevant documents in relation to the Issuer and the Domestic Bonds have been published on the website of Shanghai Stock Exchange (上海證券交易所) (http://www.sse.com.cn). Shareholders and investors are reminded that such documents were prepared in accordance with the requirements in the PRC and would be updated constantly, besides, they are limited solely to the Issuer which only form a part of the operation of the Group and the information contained therein does not provide a full picture of the operation or status of the Group.

As the issue of the Domestic Bonds may or may not proceed, holders of shares or other securities of the Company and potential investors should exercise caution when dealing in the shares or other securities of the Company.

By order of the Board

GOME Electrical Appliances Holding Limited Zhang Da Zhong

Chairman

Hong Kong, 6 January 2016

As at the date of this announcement, the Board of the Company 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, Mr. Ng Wai Hung, Ms. Liu Hong Yu and Mr. Wang Gao as independent non-executive directors.

* For identification purpose only