2010 was a pitch-dark year for GOME as China’s largest electronics retailer faced 2 major blows: First was the indictment and subsequent jail sentencing of founder Huang Guangyu for insider trading. Secondly, Mr Huang was exerting control from jail and engaging in a board proxy battle.

The situation created near-total chaos as foreign investors – then half of GOME’s shareholders – began selling off in droves and stock tumbled to a bottom-low of HK$2.2 as more questions surfaced about governance and the opaqueness of GOME’s reporting. In early 2011, with new leadership in place, investor relations helped bring GOME out from this dark chapter through rebuilding its reputation by completely embracing and demonstrating a new model of openness and transparency that historically has been associated with Western companies. Could this set an example for other publicly-held Chinese companies as the market develops? Quarterly perception audits provided investors’ feedback that helped shape a communications plan and messaging to address concerns. Investor and media relations strategies shined a bright light on the new leadership team to demonstrate the sharp break from the previous ones while conveying GOME’s messages regularly, consistently and transparently.

In late 2011, the average share price climbed to a 3-year high of HK$3.5. Foreign investment levels increased to 82% in early 2012 from 50% during proxy fight. Investor perceptions scored at 8.8 from 4.4 in a perception audit earlier in the year. GOME was named the only Asian retailer in Forbes’ '2011 Asia’s Fab 50 Companies'.

In March 2011, GOME launched a targeted corporate and investor relations campaign to rebuild confidence in the company.

• Quarterly investor perception audits to keep GOME’s team abreast of current perceptions and concerns and enable communications to create and fine-tune messaging, Q&As and tactics to address these concerns in a timely manner. The audits also provided a way to track changes in perception over time.• 360-degree stakeholder mapping identified 50 key investors, analysts and media for GOME communications outreach.

• Executive visibility through meetings with 150 media, investors and analysts emphasized the leadership and experience of the new chairman all reinforced GOME’s new and unified identity and boosted overseas investors’ confidence.• Quarterly earnings provided opportunities to meet with international press and investors.• Regular updates to the financial community on its alliances with overseas players (e.g. Electrolux, Sanyo), positioning GOME as a strong player for thriving in China.

GOME’s corporate reputation program has been a critical part of the company’s turn-around in less than one year. Media coverage in tier-one outlets including WSJA, FT and Reuters and beyond achieved 80% message pull-through and played a significant role in the company’s triumphant resurgence.

• GOME’s average share price in 2011 rose to a 3-year high of HK$3.5, versus the bottom-low of HK$2.2 in mid-2010.

• In early 2012, overseas institutions held 82% of GOME’s public float, versus 50% during proxy fight and 65% before the crisis.

• Ratings for GOME’s corporate governance rose from 4.4 in the perception audit in early 2011 to 8.8 in late 2011, reflecting that investors’ perception needle has shifted to positive.

• Forbes Magazine named GOME as the only Asian retailer in its '2011 Asia’s Fab 50 Companies' list.

• Kantar Retail ranked GOME as the only Chinese retailer in its 'Top 50 Global Retailers'.