(Yicai Global) Dec. 7 -- Fang Wei, the chairman of the board of supervisors of Gome Telecom Equipment, a unit of cash-strapped electronics retail giant Gome Holdings Group, has resigned from his post, citing personal reasons.

Fang nominated Wang Na, financial director of sister firm Gome Retail Holdings, as his successor, Shanghai-listed Gome Telecom announced yesterday.

Fang will remain as a senior vice president of Gome Retail, a source close to the parent company told Yicai Global. He was previously its chief financial officer and is now vice chair of its investment and financing committee.

Wang joined Gome in 2014. She was the financial director and manager of Gome Electric Appliance until last year and the deputy financial director of Gome Retail between 2021 and this year, Gome Telecom added, noting that it will hold a shareholders' meeting on Dec. 21 to review her nomination as chair of the board of supervisors.

Gome Retail's operational revenue shrank 54 percent to CNY12.1 billion (USD1.7 billion) in the six months ended June 30 from a year earlier, while its net loss widened 50 percent to CNY3 billion (USD429.7 million).

Rumors claiming Gome would be liquidated because of debts recently circulated online. None of Gome Group’s subsidiaries have received any legal documents or inquiries from judicial authorities regarding a bankruptcy filing, Gome Retail said in a statement on its Weibo account on Dec 1. 

Beijing-based Gome Group will deal with its operational difficulties through negotiations under the premise of fully protecting the rights and interests of all parties, Gome Retail added then. The white goods retailer will follow legal provisions and ask relevant parties to abide by laws and regulations to solve the problems, it said.

Gome Telecom [SHA: 600898] fell 2 percent today to close at CNY5.91 (85 US cents), bringing the decline in its share price to 8.7 percent so far this month. Gome Retail [HKG: 0493] sank 5.6 percent, finishing at 16 Hong Kong cents (2 US cents).

Gome Electric Appliance has yet to take action to pay off debts, the head of a home appliance company told Yicai Global yesterday, adding that the firm will do its best to get back the money it is owed to protect its rights and interests.

Gome Retail gave up on expansion plans and remains focused on its existing businesses.

Yesterday, Gome Electric Appliance initiated the Gome Cup sales promotion nationwide. Between today and Dec. 11, Gome's units will invite 10 outstanding salespersons to join a competition by taking part in livestreaming sales.

Gome's big investments in new ventures have hardly paid off, as the company still relies on its offline businesses because of a tight budget, a former mid-level manager told Yicai Global at the end of September.

Editors: Shi Yi, Martin Kadiev