(Yicai) Dec. 28 -- Shares of Gome Retail Holdings soared after the cash-strapped Chinese home electronics retailer said it would repay about one-third of its USD100 million convertible bonds that expired in June to Chinese e-commerce giant JD.Com.

Gome [HKG: 0493] was trading up 11.5 percent at 6.8 Hong Kong cents (0.9 US cents) as of 3.00 p.m. in Hong Kong today, after earlier jumping as much as 29.5 percent.

Gome will transfer its 21.7 percent stake in Chinese home appliance service provider Shifendaojia Service Technology worth CNY105 million (USD14.8 million) to JD.Com’s unit JD Bangneng Investment Management, the Beijing-based company announced late yesterday.

Moreover, Danube Innovation, another unit of JD.Com, will convert CNY145 million worth of bonds, equal to 0.3 percent of Gome’s total equity, at a conversion price of HKD1.24 per share.

In May 2020, JD.Com’s subsidiary JD.Com International purchased US100 million convertible bonds issued by Gome, expiring on June 30 this year.

In yesterday’s statement, Gome did not specify how and when it plans to replay the remaining two-thirds of the bonds, but mentioned that JD.Com promised not to file a winding-up petition against Gome during the transaction period and within the six months following the transaction.

Gome’s revenue plunged 96 percent to CNY414.8 million (USD58.4 million) in the first half of the year from a year earlier, according to the company’s latest earnings report. Net profit widened 19 percent to CNY3.5 billion (USD498 million).

Editor: Futura Costaglione