Gome Retail Holdings Limited · HKEX:493
Gome Retail — H1 2020 Earnings Presentation
39 slides from Gome Retail's earnings presentation, August 2020
Slide 1: 2020 Interim Results Announcement
2020 Interim Results Announcement August 2020
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides ( the “ Presentation ”) which have been prepared by GOME Retail Holdings Limited (“ GOME ” or the “ Company ”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied
Slide 3: Content
Content 1、Financial Highlights 2、Accelerating Transformation and Upgrade with Opportunities and Challenges Ahead 3、·Taking Proactive Measures to Pursue Innovation and Upgrades ·Constructing a Brand New GOME Driven by Online and Offline Dual Platform 4、Appendix 3
Slide 4: Financial Highlights
Financial Highlights
Slide 5: 2020H1 Financial Highlights
2020H1 Financial Highlights Actively embrace the new era of retail through innovative development Pinduoduo.com + JD.com Community + GOME APP e-commerce platform GMV up over 70% YoY GMV YoY growth by 100 times No. of online communities Accumulated 2000+ up more than 40% live streaming events No. of
Slide 6: 2020H1 Financial Highlights – Key Operating Indicators
2020H1 Financial Highlights – Key Operating Indicators Sales Revenue 19.08 billion Consolidated Gross Profit Margin 11.6% 8billion 20% 6billion 15% 4billion 10% 2billion 5% 0% 2020.1 2020.2 2020.3 2020.4 2020.5 2020.6 2020.1 2020.2 2020.3 2020.4 2020.5 2020.6 Loss Attributable to Owners of the Paren
Slide 7: Inventories Turnover and Cash Position
Inventories Turnover and Cash Position Inventory turnover days of June 2020 Cash and cash equivalents YoY decreased by 17 days Increased to approximately RMB11.4 billion 11.4 60 8.2 43 June 2019 June 2020 As of 31 December 2019 As of 30 June 2020 Remarks: Restricted cash is not included in cash and
Slide 8: Accelerating Transformation and Upgrade with Opportunities and Challenges Ahead
Accelerating Transformation and Upgrade with Opportunities and Challenges Ahead
Slide 9: Challenges and Opportunities Brought by Changes in the Macro Environment & Industry
Challenges and Opportunities Brought by Changes in the Macro Environment & Industry 6.8 % 11.4% 35.8% 29.3% Q1 H1 Q1 H1 National GDP National retail sales National retail sales of home National offline retail sales of decreased decreased appliance market decreased home appliances decreased Opportuni
Slide 10: Macro Environment & Industry Driving Consumption with a Multiplier Effect
Macro Environment & Industry Driving Consumption with a Multiplier Effect On 13 March 2020, 23 departments including the On June 18, 2020, Vice Premier LIU He delivered a National Development and Reform Commission speech at the Lujiazui Forum, pointing out that “a Favorable Policy jointly issued the
Slide 11: Taking Proactive Measures to Pursue Innovation and Upgrades
Taking Proactive Measures to Pursue Innovation and Upgrades
Slide 12: “Home · Living” Strategy: One-stop Home Solution, Service Solution and Supply Chain Provider
“Home · Living” Strategy: To Become a One-stop Home Solution, Service Solution and Supply Chain Provider Integrated Solution for the Entire Home Home Solution for Package Purchase One-stop Home Solution Smart Home Solution Providing Technical Product Solutions to B-end Merchants Delivery/Installatio
Slide 13: In-community: Create GOME’s Private Domain Traffic Channel
In-community: Create GOME’s Private Domain Traffic Channel No. of online community growth rate >50% No. of users reached by FY2020 Expected online community growth rate >50% Online community Maintain the leading Order conversion rate level among industry Actively interacts with consumers through com
Slide 14: In-online: New Engine of GOME’s Development
In-online: New Engine of GOME’s Development 央视新闻 2000+ 100 million+ Cumulative 2.5 billion+ Cumulative Live Streaming viewers Events Sales* Rich content + Top traffic IP + Real scenario By virtue of joint forces from different video platforms, e-commerce platforms, supply chain Professional host: Cr
Slide 15: In-online: Create “GOME Model” in New Retail Era
In-online: Create “GOME Model” in New Retail Era Life Style Sharing: Enhance users’ satisfaction through products promotion in way of life style sharing. Brand endorsement: Cover all top brands nationwide and quality foreign brand. Live Streaming + Offline scenario-based experience: 人人都爱中国造 720 mill
Slide 16: In-store: Create an integrated, experiential and scenario-based flagship store
In-store: Create an integrated, experiential and scenario-based flagship store “Cozy Home” Integrated Kitchen Solution Smart Home Home Appliances Solution “Kitchen Space” Home Service 16
Slide 17: In-home: Provide Caring Service for Consumers
In-home: Provide Caring Service for Consumers Service Team: Service items: 30,000 self-operated service Installation, maintenance, cleaning, recycle, managers and third-party home cleaning, air treatment, etc. employees Over 40% of 5-star engineers Service Area: Online service platform + Cover 2,000
Slide 18: In-home: Become a Leading Integrated Logistics Service Provider
In-home: Become a Leading Integrated Logistics Service Provider of “Warehouse, Transport, Delivery, Assembly” for Medium to Large-sized Products 1600+ Transport routes 530 All-in-one service providers 32 Regional central warehouses Ha'erbin Network coverage: Changchun Cities 95.5% Counties: 91.0% Wu
Slide 19: In-home: “Store” Channel & “Instant Delivery” Focusing on Local Retail
In-home：“Store” Channel &“Instant Delivery” Focusing on Local Retail Implemented “one store one webpage” model Deeply connect users and become the closest and most and turn offline store to online platform. Each store trusted “family advisor” to them. serves community users within 3-5 km to form an
Slide 20: Carry out Corporate Social Responsibilities, Fully Support the Frontline to Fight Against Epidemic
Carry out Corporate Social Responsibilities, Fully Support the Frontline to Flight Against Epidemic Chinese CCTV news reported that GOME assisted the construction of cabin hospitals which shows the advantage of nationwide chain-store network with high efficiency, showcasing the "China speed" Partici
Slide 21: Constructing a Brand New GOME Driven by Online and Offline Dual Platform
Constructing a Brand New GOME Driven by Online and Offline Dual Platform ——Focus on “socializing + business + sharing” to build a localized technology-based retail enterprise
Slide 22: Operation Potential of Dual Platform Leverages Broader Development
Operation Potential of Dual Platform Leverages Broader Development E-commerce platform Social media platform Online Community Local OperationCapabilities Online ·Integrated retail platform of home appliances ·A leading, quality e-commerce Over 1 million ME shop owners to drive the growth and distrib
Slide 23: Established GOME Ecosystem Centering on “Social + Business + Sharing”
Driven by Two Axes of Online / Offline + Self operation / Platform, Four Rounds of Interaction, and Centering on “Social + Business + Sharing", Established GOME ecosystem APP store terminal + Online community terminal + Customer terminal one store One online Fully open up the supply chain and multip
Slide 24: Online Platform: Empowerment by Traffic, Local Retail Operation and Decision Capability
Online Platform：Empowerment by Traffic，Local Retail Operation and Decision Capability Accelerating the Growth of Merchant Empower third-party merchants Empower third-party merchants with local Smart Help enterprise management to Traffic through the accumulated private retail operations’ capabilities
Slide 25: Offline Platform: Omni-industry Deployment, Achieving Win-Win Situation with Merchants
Offline Platform: Omni-industry Deployment, Achieving Win-Win Situation with Merchants Focus on the entertainment marketing theme and provide customers with services such as catering, entertainment, shopping, leisure and etc. to meet the differentiated service needs of all age and income groups of f
Slide 26: Self-operated: Stringent Selection Standards, Diverse Self-operated Vertical System
Self-operated: Using Stringent Selection Standards, Establishing a Diverse, Self-operated Vertical System Benefiting from the accumulated resources and advantages in the home appliances industry to actively develop non-home appliances business and establish a diverse, self-operated vertical system t
Slide 27: Self-operated: Stringent Selection System, Achieving to Be A Quality Leader
Self-operated: Stringent Selection System, Achieving to Be A Quality Leader Online Consumer Manufacturing Supply chain Channels Experience Procurement and Circulation and production consumption Cost control Upstream Direct Online channels Door to door procurement delivery Supplier Factory User Quali
Slide 28: Self-operated: Open up Supply Chain – Cooperation with PDD
Self-operated：Open up Supply Chain–Strong Cooperation Between the Traditional Home Appliances Retailer & Founder of New E-commerce ·Launch 30,000 SKUs covering all categories products on PDD. GOME：Strong Retail Based com flagship store ·Cover all top brand of electrical appliances, offering high-qua
Slide 29: Self-operated: Open up Supply Chain – GOME vs JD.com Win-Win Strategies
Self-operated：Open up Supply Chain– GOME vs JD.com Develop Win-Win Strategies and Rebulid Industry Framework GOME connects its “Retail infrastructure” such as supply chain, large-sized product logistics services, services system and around 2,800 offline stores nationwide into JD.com, and introduces
Slide 30: Focus on Local Retail and Create A New Gome Oriented by User, Platform and Technology
Focus on Local Retail and Create A New Gome Oriented by User, Platform and Technology Online and offline dual platform centering on “socializing + business + sharing” Focus on local retail, to create a new technology-based, intelligent and user-oriented GOME. Strict customization of non-home applian
Slide 31: Appendix
Appendix
Slide 32: Income Statement Summary
Income Statement Summary (RMB million) 2019H1 2020H1 YoY Change Revenue 34,333 19,075 (44.4)% Consolidated Gross Profit 6,151 2,222 (63.9)% Consolidated Gross Profit Margin 17.9% 11.6% (6.3)percentage points Profit/(Loss) Before Finance Cost and Tax 366 (2,005) _ EBIT Margin 1.1% (10.5)% (11.6) perc
Slide 33: Financial Position
Financial Position (RMB million) As of 31 December 2019 As of 30 June 2020 Change Cash and Cash Equivalents 8,187 11,437 39.7% Restricted Cash 13,036 13,800 5.9% Restricted Cash Ratio (excl. Loan Deposit and Interest Reserve) 36.6% 33.6% (3.0)% Inventories 7,688 6,624 (13.8)% Inventory Turnover Days
Slide 34: Consolidated Gross Profit Margin
Consolidated Gross Profit Margin (RMB million) 2019H1 2020H1 Revenue 34,333 19,075 3.3% Consolidated Gross Profit 6,151 2,222 Consolidated Gross Profit Margin 17.9% 11.6% 2.6 % Gross Profit Margin from Suppliers 14.6% 9.0% 14.6% 9.0% Other Income and Gains 3.3% 2.6% -Income from Platforms * 0.4% 0.2
Slide 35: Revenue Breakdown by Tiers of Cities
Revenue Breakdown by Tiers of Cities 2019H1 2020H1 5.5% 8.3% 23.5% 22.4% 71.0% 69.3% Tier 1-2 cities Tier 3-4 cities county-level cities 35
Slide 36: Nationwide Store Network
Nationwide Store Network As of 30 June 2020 Group Total GOME China Paradise Dazhong Cell Star Flagship Stores 279 229 29 21 - Standard Stores 991 854 67 20 50 Decoration Materials + Home Furnishing In-store Shops 29 27 2 - - County-level Stores 1423 1302 88 32 1 Supermarket Stores 101 91 4 1 5 Total
Slide 37: Revenue and Gross Profit Margin by Category
Revenue and Gross Profit Margin by Category Revenue by Category 27.5% 18.3% 19.2% 19.3% 17.3% 14.7% 12.6% 15.2% 10.8% 10.8% 14.0% 8.0% 5.2% 7.0% AV Air-con Fridge&Washing Telecom Small Computer Integrated Smart Machines Appliances &Digital Home Furnishing Solution* Gross Profit Margin by Category 18
Slide 38: Top 5 Suppliers
Top 5 Suppliers Top 5 Suppliers (2020H1) 50.2% 15.1% 14.2% 7.5% 7.2% 6.2% Apple Huawei Haier Midea Gree Top 5 suppliers in Total Top 5 Suppliers (2019H1) 46.2% 9.6% 9.4% 9.3% 9.0% 8.9% Haier Huawei Midea Apple Gree Top 5 suppliers in Total 38
Slide 39: Thanks!
Thanks！