Gome Retail Holdings Limited · HKEX:493
Gome Retail — H1 2015 Earnings Presentation
39 slides from Gome Retail's earnings presentation, August 2015
Slide 1: 2015 Interim Results
Slide 2: Content
目录 Content 1 O2O Total Retail Results Highlights 2 GOME O2O Total Retail Strategy 3 Acquisition of the Target Company 4 Appendices
Slide 3: Financial Highlights
Financial Highlights MORE CHOICES BETTER LIVING Sales Revenue Cash & Cash Equivalents RMB31.69 Billion (+8.8%) RMB10.7 Billion Profit Attributable to Owners of Dividend Payout Ratio the Parent (40%) RMB687Million (+15.9%)* * Excluding one-off compensation received of RMB100 million in 2014, the prof
Slide 4: Operation Highlights
Operation Highlights MORE CHOICES BETTER LIVING New Stores: 117 Net store Increase: 81 Online GMV T1 Market: 5 Y-o-Y Growth T2 Market: 76 151% SSSG Overall : 2.3% SSSG T2 Market: 5.3% Members：150 Million Active Members：60 Million Online Orders (including platform) Mobile GMV /Total Orders：20%+ Y-o-Y
Slide 5: Outperformed the Industry in Key Financial Indicators for Consecutive Quarters
Outperformed the Industry in Key Financial Indicators for 10 Consecutive Quarters MORE CHOICES BETTER LIVING Sales Revenue Y-o-Y Growth Operating Profit Margin 10.2% 10.4% 8.8% 2.5% 2.3% 0.3% 2.2% 7.4% 7.0% 1.9% 1.3% 2.2%* 131H 13FY 141H 14FY 151H 131H 132H 141H 142H 151H Consolidated Operating Expe
Slide 6: Online GMV Performance
Online GMV Performance MORE CHOICES BETTER LIVING GOME Online Single Quarter GMV Growth Mobile GMV growth RMB Million 181% ▲ 304% 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 20141H 20151H 6
Slide 7: Services Income Increased
Services Income Increased MORE CHOICES BETTER LIVING Third-party Logistics GMV Financial Services GMV ▲ 337% ▲ 80% 2014 1H 2015 1H 2014 1H 2015 1H After-sales Services Profits ▲ 23.2% 2014 1H 2015 1H 7
Slide 8: Content
目录 Content 1 O2O Total Retail Results Highlights 2 GOME O2O Total Retail Strategy 3 Acquisition of the Target Company 4 Appendices
Slide 9: Total Retail Market Trend
Total Retail Market Trend MORE CHOICES BETTER LIVING • Online and offline integrated O2O operation model would become the future development trend of the industry. Online Offline O2O Trend • In the future, shoppers, especially electrical appliances consumers, would find their shopping experience alt
Slide 10: Blueprint of GOME Total Retail Strategy
Blueprint of GOME Total Retail Strategy MORE CHOICES BETTER LIVING Leveraging its solid, low-cost and highly efficient back-end supply chain, GOME focused on the front end in the interface platform encompassing “online + offline + mobile terminals + other social channels”. The platforms of procureme
Slide 11: Interface Platform - Smart Store Experience
Interface Platform - Smart Store Experience MORE CHOICES BETTER LIVING Developed a series of smart device showrooms to provide a fun and enjoyable shopping experience to customers. We believe that the offline channel will undergo a re-valuation in the future. Kitchen Apple Samsung Gree Siemens and X
Slide 12: Interface Platform - E-commerce Business to Maintain Rapid Growth
Interface Platform- E-commerce Business to Maintain Rapid Growth MORE CHOICES BETTER LIVING To foster the development of e-commerce and downward outreach of channels under the O2O business model through our stores and supply chain. To accelerate the development of community O2O and establish GOME-on
Slide 13: Interface Platform – Enrich Customer Experience
Interface Platform – Enrich Customer Experience MORE CHOICES BETTER LIVING • China’s first online 3D home decoration and interior design platform. • Cover 50 cities in China by the end of 2015. • Customers can enjoy one- stop service from interior design, renovation to home appliances purchase. Home
Slide 14: Interface Platform - O2O Total Retail Ecosystem
Interface Platform - O2O Total Retail Ecosystem MORE CHOICES BETTER LIVING O2O “Services + Products” model to build GOME community Targeted at communities within a 5-km radius of our stores, we created zones with staff as the core component to offer services, Online Offline to enhance customer loy
Slide 15: Value Platforms Provide a Solid Foundation
Value Platforms Provide a Solid Foundation MORE CHOICES BETTER LIVING Logistics Procurement After-sales Financial Services Big Data 15
Slide 16: Value Platform - Smart Products Procurement
Value Platform - Smart Products Procurement MORE CHOICES BETTER LIVING Procurement Platform - Smart Products Procurement: domestic home appliance market will embrace a new bout of upgrade in the consumption structure, while the mass replacement, digitization, personalization of products, coupled wit
Slide 17: Value Platform - Internet TV
Value Platform - Internet TV MORE CHOICES BETTER LIVING To forge an all-round internet ecosystem under the “Content Development + User Terminal Manufacturing + Distribution Channels + Platform Operation” model. To promote the introduction of customer flow from internet and television channels throug
Slide 18: Value Platform - Cross-border Supply Chain
Value Platform - Cross-border Supply Chain MORE CHOICES BETTER LIVING To create a leading global cross-border E-Commerce platform. Japan Korea French Germany shopping shopping shopping shopping channel channel channel channel 18
Slide 19: Value Platform - Financial services
Value Platform - Financial services MORE CHOICES BETTER LIVING 2015 1H Financial Services GMV: RMB700 Million To launch Supply Chain Finance and Consumer Loans in Q3 and Q4 respectively Integration of Cross-industry Financial services Supply Cross - Wealth Insurance Fund Consumer Chain industry/ Mgm
Slide 20: Content
目录 Content 1 O2O Total Retail Results Highlights 2 GOME O2O Total Retail Strategy 3 Acquisition of the Target Company 4 Appendices
Slide 21: Acquisition of the Target Company - To Increase Market Share with Nationwide Stores
Acquisition of the Target Company- To Increase Market Share with Nationwide Stores MORE CHOICES BETTER LIVING The retail network of the Target Company has great potential and is highly complementary to the Listed Company. Upon the completion of Acquisition, the Listed Company expects to upgrade from
Slide 22: Acquisition of the Target Company - Accelerate Coverage of Tier-Two Market
Acquisition of the Target Company- Accelerate Coverage of Tier- Two Market MORE CHOICES BETTER LIVING To expand store network in tier-two market and consolidate local retail companies through integrating the retail network and supply chain assets of the Target Company, so as to enable deeper e-comme
Slide 23: Acquisition of the Target Company - Forming a Nationwide Logistics and Warehousing Network
Acquisition of the Target Company- Forming a Nationwide Logistics and Warehousing Network MORE CHOICES BETTER LIVING To establish a nationwide logistics network with regional warehouses, municipal warehouses and last-mile delivery and become one of the largest home appliance logistics networks in Ch
Slide 24: Acquisition of the Target Company - Logistics Service
Acquisition of the Target Company- Forming a Nationwide Logistics and Warehousing Network MORE CHOICES BETTER LIVING To fully reap the benefits of logistics competitive advantages and meet the needs of GOME + Third Parties. Optimize logistics services to enhance customer experience 1. The highest in
Slide 25: Acquisition of the Target Company - Fully Integrate Cloud Platform with After-sales Service
Acquisition of the Target Company- Fully Integrate Cloud Platform with After-sales Service MORE CHOICES BETTER LIVING Driven by consumer needs and with a focus on solving problems faced by consumers, GOME aims to enhance customer traffic to form a complete product and service cycle and fulfil its mi
Slide 26: Acquisition of the Target Company - GOME Cloud After-sales Service
Acquisition of the Target Company- Fully Integrate Cloud Platform with After-sales Service MORE CHOICES BETTER LIVING To operate over 2,000 after-sales service centers in more than 400 cities nationwide, building the largest cloud platform for after-sales in China, providing professional after-sales
Slide 27: Potential Synergies of The Acquisition
Potential Synergies of The Acquisition MORE CHOICES BETTER LIVING To realise the integration of the Listed and the Non-listed companies’ offline resources, transform the current regional retail network into a nationwide one, support the nationwide coverage of E-Commerce and ensure the effective and
Slide 28: Expanding GOME Total Retail Ecosystem – Move Faster
Expanding GOME Total Retail Ecosystem – Move Faster Toward Goal of Building Another GOME by 2017 MORE CHOICES BETTER LIVING To develop a GOME total retail ecosystem with 150 million members+12,000 suppliers+10,000 merchants+100,000 employees & fans, and continue to grow. 28
Slide 29: Content
目录 Content 1 O2O Total Retail Results Highlights 2 GOME O2O Total Retail Strategy 3 Acquisition of the Target Company 4 Appendices
Slide 30: Income Statement Summary
Income Statement Summary (RMB Million) 2014 1H 2015 1H Change Revenue 29,124 31,692 8.8% Consolidated Gross Profit* 5,384 5,611 4.2% Consolidated Gross Profit Margin* 18.5% 17.7% (0.8)p.p. Operating Profit* 638 694 8.8% Operating Profit Margin* 2.2% 2.2% - Profit Before Tax* 746 801 7.4% Profit Attr
Slide 31: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement * （RMB Million） As of 31 Dec 2014 As of 30 Jun 2015 Change Balance Sheet Cash & Cash Equivalents 8,794 10,716 21.9% Pledged Deposits 6,073 4,083 (32.8)% Pledged Deposit Ratio (excl DGPOL) 30.2% 32.2% 2.0 p.p. Inventories 10,926 9,785 (10.4)% Inventory Turnover D
Slide 32: Consolidated Gross Profit Margin
Consolidated Gross Profit Margin RMB Million Excluded RMB100 million one- off compensation received, the (RMB Million) 2014 1H 2015 1H consolidated gross profit would be 18.5% for 20141H 18.8% Revenue 29,124 31,692 17.7% 5,484 5,611 0.3% Consolidated Gross Profit 3.0% Consolidated Gross Profit Margi
Slide 33: Store Indicators
Store Indicators Period-end Sales Area 1,000 sq.m Store number 3,934 3,758 3,684 3,660 3,732 3,719 3,614 3,592 3,604 3,589 1,081 1,073 1,063 1,075 1,082 1,088 1,117 1,132 1,136 1,213 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 Average Sales Per
Slide 34: Tier-One & Tier-Two Market Revenue
Tier-One* & Tier-Two* Market Revenue 20151H Tier-One market sales ▲ 6.5% Y-o-Y, Tier-Two market sales ▲ 18% Y-o-Y Tier-One & Tier -Two Market Sales Ratio Tier-One & Tier -Two Market Sales RMB Million 79.9% 78.2% 24,769 23,256 20.1% 21.8% 6,923 5,868 Tier 1&2 cities Tier 3&4 cities Tier 1&2 cities Ti
Slide 35: Revenue by Region
Revenue by Region 20151H Revenue：RMB31.69Billion 20141H Revenue：RMB29.12Billion 38%39% 18% 16% 10%10% 8% 9% 8% 8% 7% 7% 6% 6% 5% 5% Beijing Guangzhou Shenzhen Shanghai Chengdu Xi'an Chongqing Others 20141H 20151H 35
Slide 36: Revenue & Gross Profit Margin by Category
Revenue & Gross Profit Margin by Category Revenue by Category Gross Profit Margin by Category 22% 20% 20% 20% 18.8% 18.4% 18% 18% 16.3% 16.5% 16.8% 16.4% 16.2% 16% 15.1% 14% 14% 13% 11.9% 11.7% 11.1% 10.9% 9.4% 9% 9% 8.8% 4% 3% AV Air-con Fridge Tel-com Small Computer Digital AV Air-con Fridge Tel-c
Slide 37: Store Network
Store Network China As of 30 Jun 2015 Group GOME Dazhong Cellstar Paradise Flagship stores 258 194 36 28 - Standard stores 352 294 42 16 - Specialized stores 603 468 80 10 45 Total: 1,213 956 158 54 45 Among： T1 Market 698 508 106 46 38 T2 Market 515 448 52 8 7 Net store increase 81 76 (1) - 6 Numbe
Slide 38: Top Suppliers
Top 5 Suppliers 20151H GOME Top 5 Suppliers 43.3% 9.9% 9.1% 8.5% 8.2% 7.6% Haier Gree Apple Midea Samsung Top Five Suppliers 20141H GOME Top 5 Suppliers 42.3% 11.9% 9.9% 7.7% 6.8% 6.0% Samsung Haier Midea Gree Apple Top Five Suppliers 38
Slide 39: Thank you!
Thank you！