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China’s former richest man, Huang Guangyu, vows comeback by next year after release from prison

  • Huang Guangyu, founder of Gome, completed his parole this week after 12 years behind bars
  • The former retail mogul saw his empire of bricks-and-mortar stores struggle as more consumers turned to e-commerce

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A man walks past a Gome store in Shanghai, China on August 26, 2013. Photo: Reuters
Josh Ye

Huang Guangyu, founder of electronics retail chain Gome Retail Holdings and formerly China’s richest man, has pledged to return his company to its former glory within 18 months after finishing parole this week.

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One of China’s most influential entrepreneurs before the country’s rich list came to be dominated by tech founders and property developers, Huang was arrested in late 2008 on suspicion of “economic crimes”, and convicted in 2010 for insider trading and corporate bribery. He was originally sentenced to 14 years in jail, but his term was shortened for good behaviour. He was released from prison last year.

While Huang’s wife, Du Juan, has been managing Gome’s operation during his imprisonment, China’s retail environment has undergone massive changes. As online shopping replaced bricks-and-mortar stores as the main channel for home appliance purchases, Gome’s business came to be dwarfed by the country’s rising e-commerce giants.

Huang Guangyu speaks during an interview in Beijing, China, on September 7, 2006. Photo: Reuters
Huang Guangyu speaks during an interview in Beijing, China, on September 7, 2006. Photo: Reuters

“We will try to resume our original market position within the next 18 months,” said Huang, 52, in his latest speech to Gome’s management, published by the company on WeChat on Tuesday.

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He said that Gome’s basic strategy is to offer customers “low price for carefully selected products”, along with timely delivery and a happy shopping experience.

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