Gome Retail Holdings Limited · HKEX:493
Gome Retail — H1 2019 Earnings Presentation
39 slides from Gome Retail's earnings presentation, August 2019
Slide 1: 2019 Interim Results Announcement
2019 Interim Results Announcement August 2019
Slide 2: 免责声明 Disclaimer
免责声明 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 on in
Slide 3: To Become a One-stop Home Solution, a Service Solution and a Supply Chain Provider
To Become a One-stop Home Solution, a Service Solution and a Supply Chain Provider “Home·Living” Online and Offline Integration One-stop Integrated Solution for the Entire Home Home Solution Provider Smart Home Solution “Home·Living” Service Scale/Socialization “Home·Living”Strategy Service Solution
Slide 4: Middle-end Data Platform
Integration of ME Shop, GOME APP and Offline Stores: Establishing ONE GOME Traffic Pool GOME APP ic Tr a f f aff Tr Business ic Middle-end data platform GOME GOME OFFLINE STORE Big Data ME SHOP Middle-end Data Platform Middle-end Data Platform Middle-end data platform · Internet technology empower t
Slide 5: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 6: 2019H1 Financial Highlights
2019H1 Financial Highlights Steady Development of New Businesses under “Home · Living” Strategy County-level stores （Self-operated store + New retail stores）GMV YoY Growth 339 % GMV of Smart Products YoY Growth 62 % One-stop Home Solution Integration of Kitchen Cabinets and Electrical Appliances GMV
Slide 7: 2019H1 Financial Highlights–Key Operating Indicators
2019H1 Financial Highlights–Key Operating Indicators Total GMV RMB YoY Increase Sales Revenue RMB Basically Remained 72.19 billion 1.8 % 34.33 billion Stable Consolidated Gross YoY Increase Loss attribute to owners of the YoY narrowed parent company RMB about Profit Margin 17.9 % 0.6 percentage poin
Slide 8: Inventories and Cash Position
Inventories and Cash Position Consistent enhancement of inventory turnover efficiency Cash and cash equivalents at approximately turnover days reduced by 12 days YOY RMB10.1 billion Inventory turnover days Cash and cash equivalents (RMB billion) 66 54 10.1 10.1 1H2018 1H2019 As of 31 Dec 2018 As of
Slide 9: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 10: One-stop Home Solution
One-stop Home Solution Positioning front-end customers Covering full life cycle of home decoration, home furnishing and home appliances Central Air-con Smart Fresh Air Home System Integrated Kitchen Cabinets and Electrical Appliances Home Security Floor Heating Furnishing System System Solutions Air
Slide 11: One-stop Home Solution: Cozy Home
One-stop Home Solution: Cozy Home Smart energy saving syste Central dedusting system Smart Over 360+ showcases all over the country centralized control system Central air ventilation sales revenue 42% Smart appliances Central water purification system Integrated kitchen Central floor heating Central
Slide 12: One-stop Home Solution: Integrated Kitchen Cabinets and Electrical Appliances
One-stop Home Solution: Integrated Kitchen Cabinets and Electrical Appliances Self-operating kitchen cabinets 1 Integration of online and offline Beijing and Shanghai stores open 2 German kitchen cabinets + worldwide high quality appliances for business Wuxi, Nanjing, etc will be opened 3 Standard c
Slide 13: One-stop Home Solution: Kitchen Products Showcases
One-stop Home Solution: Kitchen Products Showcases Explore aesthetics of kitchen life Online + Offline Combining Content + Community + Scenario 20000+SKU 360+Brands through diversified channels enhances customers’attraction 11
Slide 14: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 15: New Retail Stores Becoming Development Momentum
New Retail Stores Becoming Development Momentum Expand network rapidly through new retail stores and franchise business models Horizontal integration accelerates growth and vitality 218 stores newly opened in 1H2019 Full empowerment of Integration of local chain High store output Approximately 500 s
Slide 16: Large-scale Integrated Flagship Stores: Intelligence, Technology and Youth Oriented
Large-scale Integrated Flagship Stores: Intelligence, Technology and Youth Oriented Home appliance High Frequency Intelligent Scenario Service Scenario Scenario Business Scenario High Frequency Industry Low Frequency Industry Supermarket Entertainment Children Kitchen Electric appliance IXINA GOME (
Slide 17: Establish Diversified Stores
Establish Diversified Stores Cross-industry coopeartion creates multiple access portals Supermarket in-store-shops Decoration materials + Home furnishing in-store shops Newly-opened 205 in-store-shops in the first half year Explore collaboration with nationwide and regional Established cross-industr
Slide 18: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 19: ME Shop Becomes the Social Retail Traffic Driver
ME Shop Becomes the Social Retail Traffic Driver Traffic expansion based on physical stores Over 580,000 ME shop owners in 1H2019; targeting 900,000 in 2H2019 physical stores ME shop owners Transformation We Chat group Extended group by ME shop owners Reached group Reached group Gome staff + Externa
Slide 20: ME Shop Strong Operation Capability
ME Shop Strong Operation Capability GMV Brands TOPShops SPU Orders growth YoY 560+ 270+ 5100+ 100,00+ 123% Transaction Basic Information Information High product Behavior turnover Targeting Information Marketing Information Precise products push rate with new users based on needs analysis Attributes
Slide 21: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 22: Smart Home Solution
Smart Home Solution 5G+loT, Establish Open Ecosystem for Smart Home Upgrade strategic partnership with Huawei, sharing the benefits of 5G Smart AC Smart home AV system Smart washer Smart refrigerator Smart water heater Smart lighting Smart curtain Smart gas detection Smart socket Monitoring “Xiaomei
Slide 23: Smart Home Solution
Smart Home Solution GOME Smart proprietary products: all categories covered, 1 Y.o.Y GMV growth 62% IoT platform access to : 60 brands,70 categories, 100+ manufacturers, 2 6 scenario mode development 3 Smart experience hall: 15 in 1H2019, 5G signal covered by telecommunication operators 4 Patents：68
Slide 24: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 25: Service Improve Customer Stickiness, Boost repurchase
Service Improve Customer Stickiness, Boost repurchase Service enhances customer interaction, forming new momentum within differentiated competition Experience service smarter, simpler, more adaptable family scenarios Installation with delivery Intelligent manufacture Consumable replacement Bulk deli
Slide 26: Commoditization, Intelligentization and Socialization of Service
Commoditization, Intelligentization and Socialization of Service Full life-cycle & intelligent after-sales services Realizing long-term high-frequency connection Consumable Dropped connection Cleaning Inquiry service replacement maintenance service 3 Parties Connection Maintenance service Repair ser
Slide 27: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 28: Building High-frequency Supply Chain System Empowered by Technology
Building High-frequency Supply Chain System Empowered by Technology Strong infrastructure and rich national warehouse network Cloud warehouse fullfilled by Technology Cloud Warehouse Model local purchase storage local purchase storage TOP centralized purchase TOP centralized purchase RDC Storage of
Slide 29: Integrating Store, Storage and Delivery
Integrating Store, Storage and Delivery 3-5 km 2-hour delivery Improve user experience and stickiness Service Enquiry View Product Purchase Order Shopping District Physical GOME APP Shopping District Users Stores Users 2-hour Delivery for Next-day Delivery for Self Store Storage Online Products Pick
Slide 30: “Home · Living” Strategy Build O2O New Retail Ecology
“Home · Living” Strategy Build O2O New Retail Ecology Traffic/Products Integration of GOME APP, Service/Experience ME shop and physical stores Physical stores natural traffic Installation ME shop + community traffic Cleaning and maintenance Online natural traffic Repaire and inquiry Traffic Service
Slide 31: Content
Content 1.Financial Highlights 2.Establishing a New Retail Pathway with GOME’ s Iconic Characteristics: ·One-stop Home Solution Achieveing the Integrated Coverage of Family Needs ·Expanding Network, New Retail Stores Becoming Development Momentum ·Unbonded Social Retail ME Shop Generating Low Cost T
Slide 32: Income Statement Summary
Income Statement Summary (RMB million) 1H2018 1H2019 YoY change Revenue 34,706 34,333 (1.1)% Consolidated Gross Profit 6,009 6,151 2.4% Consolidated Gross Profit Margin 17.3% 17.9% 0.6 percentage point Profit/（Loss）Before Finance (Cost)/Income and Tax (435) 366 184.0% EBIT Margin (1.3)% 1.1% 2.4 per
Slide 33: Financial Position
Financial Position (RMB million) As of 31 December 2018 As of 30 June 2019 Change Financial Position Cash and Cash Equivalents 10,143 10,106 (0.4)% Pledged Deposits 10,780 12,420 15.2% Pledged Deposits Ratio 32.8% 36.8% 4 percentage points (excl. Loan Deposit and Interest Reserve) Inventories 8,221
Slide 34: Consolidated Gross Profit Margin
Consolidated Gross Profit Margin （RMB million） 1H2018 1H2019 Revenue 34,706 34,333 1.7% 3.3% Consolidated Gross Profit 6,009 6,151 Consolidated Gross Profit Margin 17.3% 17.9% 6,009 6,151 Gross Profit Margin from Suppliers 15.6% 14.6% 15.6% 14.6% Other Income and Gains 1.7% 3.3% -Income from Platfor
Slide 35: Revenue Breakdown by Tiers of Cities
Revenue Breakdown by Tiers of Cities Sales Revenue (RMB million) Sales Ratio 25,710 74.1% 24,372 71.0% 8,566 8,076 24.7% 23.5% 1,885 5.5% 430 1.2% 1H2018 1H2019 1H2018 1H2019 Tier 1-2 cities Tier 3-4 cities county-level cities Tier 1-2 cities Tier 3-4 cities county-level cities 33
Slide 36: Nationwide Store Network
Nationwide Store Network As of 30 June 2019 Group Total GOME China Paradise Dazhong Cell Star Flagship Stores 287 236 29 21 1 Standard Stores 1219 1065 84 22 48 Decoration Materials + Home Furnishing In-store 40 38 2 - - Shops County-level Stores 647 607 25 14 1 Among them： New Retail Stores 258 244
Slide 37: Revenue and Gross Profit Margin by Category
Revenue and Gross Profit Margin by Category Revenue by Category 20.3% 19.4% 19.2% 19.5% 19.4% 18.3% 16.9% 15.6% 15.2% 14.7% 8.3% 8.0% 5.2% 0.03% AV Air con Fridge Telecom Smal Computer Integrated Smart & Appliances &Digital Home Furnishing Washing Machines Solution Gross Profit Margin by Category 21
Slide 38: Top 5 Suppliers
Top 5 Suppliers GOME Top 5 Suppliers (1H2019) 46.2% 9.6% 9.4% 9.3% 9.0% 8.9% Haier Huawei Midea Apple Gree Top 5 suppliers in Total GOME Top 5 Suppliers (1H2018) 47.1% 9.9% 9.6% 9.4 % 9.4 % 8.8% Haier Apple Midea Huawei Gree Top 5 suppliers in Total 36
Slide 39: Thanks!
Thanks!