As 2024 drew to a close, *ST Meixun was delisted due to its market capitalization, yet this development barely dented Huang Guangyu's spirits. Recently, he made a high-profile announcement of his entry into the automotive market, aiming to establish Guomei Auto as a formidable player in car sales.

Guomei Auto's future strategy will encompass comprehensive auto malls, offline used car export services, and automotive battery recycling. Huang Guangyu's ambition to venture into this new domain is evident. After failing to fulfill his pledge to revive Guomei Retail within 18 months, Huang Guangyu maintained a low profile for an extended period. Last year, he visited discount supermarkets in Hunan and Guizhou, but now he has set his sights on the automotive sales sector.

As early as 2017, automobiles had briefly entered Guomei's retail system. However, given the significant differences between automobiles and household appliances, the venture was discontinued after eight months. Huang Guangyu's latest endeavor is not a solo mission. At the strategic conference, navigation platforms, e-commerce sites, and MCN agencies were also present to sign partnership agreements. Guomei Auto aims to become a prominent automotive brand, though opinions on this venture are mixed. While there is potential to disrupt the established 4S shop model, considerable challenges also lie ahead. This marks Huang Guangyu's ultimate battle, a testament to his era-defining spirit.

Car Sales

*ST Meixun (600898.SH) was recently delisted due to its market capitalization, leaving nearly 14,000 shareholders disheartened. However, this development appears to have little impact on Huang Guangyu. In videos, he still appears with a slicked-back hairstyle and suit, exuding an aura akin to his days as China's richest man. Nevertheless, the video comments are overwhelmingly negative, with suspected former Guomei employees and suppliers demanding unpaid wages and dues. Amidst his myriad tasks, Huang Guangyu may not notice these grievances. He is steering Guomei, this colossal ship, towards a new course, transitioning from household appliance retail to automotive sales.

Driven by his innate Chaoshan business acumen, Huang Guangyu has decided to take another risk. Automobiles are not new territory for him. In 2017, Guomei Retail introduced cars into its stores. At the time, Huang Guangyu was incarcerated, and his wife, Du Juan, was in charge. Despite the industry's burgeoning popularity, Du Juan, as the company's gatekeeper, promptly cut losses, and the project was terminated after eight months. Nonetheless, Huang Guangyu's aspirations to expand into automotive retail persist.

Last May, Beijing Meiban Technology (ultimately controlled by Guomei Retail's Executive Director, Ding Jiangning, via Tianjin Guomei Automobile) established Guomei Auto Experience Centers in Beijing, positioning them as one-stop platforms for car selection, purchase, and usage. These centers served as a test run in the current automotive sales landscape. Recently, the Guomei Auto Strategy and Ecological Partner Conference was held in Beijing, with Huang Guangyu's personal attendance. From available information, Guomei Auto adheres to Huang Guangyu's familiar retail model, simply substituting automobiles for electrical appliances. It integrates display, experience, sales, and delivery functions, uniting various automaker brands and offering services such as offline used car exports and automotive battery recycling, akin to an enhanced version of a traditional 4S shop.

Self-Rescue

Transforming a household appliance store into an auto mall represents another significant commercial gamble for Huang Guangyu. He is highly confident in this venture and has boldly claimed that "a single region should become profitable within approximately 18 months." This statement echoes his previous pledge. In early 2021, upon regaining his freedom, Huang Guangyu reassumed control of the company and publicly vowed to restore Guomei Retail's (00493.HK) market position within 18 months. Under his leadership, Guomei Retail launched the Zhenkuaile APP, aiming to pull the company out of its rut with this engaging social shopping platform.

To this end, the company invested substantial resources and energy. According to Guomei Retail's financial reports, advertising expenses in 2021 totaled 962 million yuan, a 211.33% year-on-year increase. Unfortunately, timing was not on their side, and the undifferentiated Zhenkuaile struggled to compete with platforms like Taobao, Pinduoduo, and JD.com. Subsequent company financial reports barely mentioned the APP. Nonetheless, Guomei did not abandon online experiments, launching live streams on short video platforms like Kuaishou and Douyin last year. However, these accounts ceased updating after just a few months. Huang Guangyu's ambitions fell short, and Guomei Retail has since been in decline. From 2021 to the first half of 2024, operating revenues were 46.48 billion yuan, 17.44 billion yuan, 647 million yuan, and 169 million yuan, respectively. During the same period, net profits attributable to shareholders were losses of 4.402 billion yuan, 19.96 billion yuan, 10.06 billion yuan, and 4.432 billion yuan, respectively. The company's offline store count declined from 4,195 in 2021 to 565 in the first half of 2024.

As of June 2024, the company's total liabilities amounted to 41.34 billion yuan, with a debt-to-asset ratio of 148.02%. Huang Guangyu once again found himself in a dire situation. In an attempt to rescue the company, he continuously explored new avenues. Since last year, rumors persisted about plans to create tens of thousands of Guomei supermarkets and venture into the instant retail sector. In late April of last year, Huang Guangyu visited the discount brand Lele Le at night and finalized a framework cooperation agreement. However, there has been no public news of the cooperation plan's implementation to date. Following the Lele Le visit, Huang Guangyu quietly inspected the Guizhou Yunjucang discount supermarket. Despite Huang Guangyu's frenetic activity, the company continued to incur losses, and its share price declined, reducing it to a penny stock. On December 31, 2024, it closed at HK$0.02, with a total market capitalization of HK$958 million.

Former Richest Man in China

At 56, Huang Guangyu remains in his prime and aspires to make a retail comeback. However, the current market environment's complexity far surpasses that of his entrepreneurial heyday. From the late 1980s to 2008, with his keen business acumen and the entrepreneurial spirit of the Chaoshan people, he led GOME Electrical Appliances to create China's golden age of domestic chain operations. The media summarized his success keys as follows: first, leveraging a well-established chain network for small profits but quick turnover; second, employing a tenacious team to expand territory; third, utilizing capital markets for financing and expansion; and fourth, maintaining strong distribution channel control. With capital support and a robust channel network, GOME Electrical Appliances soared, and Huang Guangyu personally amassed a vast fortune. In 2004, when Guomei Retail listed on the Hong Kong Stock Exchange, the 35-year-old Huang Guangyu topped the Hurun China Rich List with a fortune of 10.5 billion yuan. He reclaimed the title of China's richest man in 2005 and 2008, peaking at 45 billion yuan, making him a prominent figure of the time.

In 2008, GOME Electrical Appliances held over 50% of the domestic market share, making it an industry leader. The company could have built on this momentum, but Huang Guangyu's involvement in economic crimes forced him to slow down. In 2010, he was sentenced to 14 years in prison, and the GOME empire was temporarily led by his wife, Du Juan. Under her guidance, Guomei Retail maintained growth, with revenue peaking at 78.254 billion yuan in 2016, its highest since listing. However, as the e-commerce era dawned, Guomei Retail struggled to keep pace. After Huang Guangyu regained his freedom in 2021, he worked to revitalize the company, while he and Du Juan frequently reduced their shareholdings. According to the Daily Economic News, from late 2021 to February 2024, Huang and Du reduced their shareholdings to cash out over HK$2.3 billion, decreasing their shareholding ratio from 60.98% to 10.96%. Alongside their share reductions, the company faced internal turmoil, rife with rumors of unpaid wages and overdue payments. Now, Huang Guangyu embarks on a new chapter of grand adventures. Whether this venture will succeed or fail may become apparent within the next 18 months.