Gome Retail Holdings Limited · HKEX:493
Gome Retail — H1 2018 Earnings Presentation
38 slides from Gome Retail's earnings presentation, 2018
Slide 1: melt -, BSS. TRA HHA
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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 on in
Slide 3: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 4: 1H 2018 Financial Highlights - Key Operating Indicators
1H 2018 Financial Highlights - Key Operating Indicators Shared Retail GMV* RMB 2.6 billion Self-support GMV: GMV from Platform: Total GMV: RMB 44 billion RMB 26.9 billion RMB 70.9 billion YoY Decrease: 4% YoY Growth: 67% YoY growth: 15% Mobile GMV YoY Growth: 53% *Shared Retail GMV： GMV achieved by
Slide 5: 1H 2018 Financial Highlights - Key Financial Indicators
1H 2018 Financial Highlights – Key Financial Indicators Sales revenue: RMB 34.71 billion YoY decrease 8.8% Comparable store sales: RMB 28.74 billion YoY decrease 6.6% Consolidated gross profit margin: 17.3% YoY decrease 0.5 percentage point Loss attributable to the owners of the parent company: RMB
Slide 6: 1H 2018 Financial Highlights – Key Financial Indicators
1H 2018 Financial Highlights – Key Financial Indicators 6
Slide 7: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Driving Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of
Slide 8: New Retail Direction – Shared Retail
New Retail Direction – Shared Retail Technology reshaping the dynamics of consumers, products and stores; transforming GOME to a service provider Big data analytics for Sales with more service Covering the complete life-cycle of continuous customization responsibilities products and services Custo
Slide 9: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 10: Home • Living Scenario Zoning - Sizable Experience Stores
Home • Living Scenario Zoning - Sizable Experience Stores Core business Platform business Electrical Home Supermarket Xiaomei Household Appliances Furnishing in Net Cafe Systems scenario- setting VR Cinemas GOME e-sports Evolving from an Others A one-stop HVAC, water purification Supermarkets, elect
Slide 11: "Home ∙ Living" Strategy Provides New Growth Opportunities
"Home ∙ Living" Strategy Provides New Growth Opportunities uHome furnishing/kitchen cabinet: uConstruction material/ household products stores: Home furnishing services launched in 106 stores; Establish standalone stores in household/construction the same service will be launched in 105 more stores
Slide 12: "Home ∙ Living" Strategy Provides New Growth Opportunities
"Home ∙ Living" Strategy Provides New Growth Opportunities u HVAC u Kitchen interior design HVAC sales growth exceeded 40% YoY; established Offer kitchen interior design services, set up independent HVAC showcases in over 100 stores. kitchenware halls & household halls. Established an HVAC Company K
Slide 13: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 14: Key Network Development by Store Category
Key Network Development by Store Category Sizable experience stores in T1-T2 cities; county-level stores in T3-T6 cities; construction material/household product stores in specialty markets Sizable experience stores: T1-T2 cities T3-T6 cities “Home∙Living” experience scenario setting County-level st
Slide 15: Continue to Expand Store Network
Continue to Expand Store下Network 283 county-level stores opened as of 1H 2018; expects to open 800 stores in 2018; 2,000 county-level stores to be opened in the next 3 years. u Introduced core brands to stores to u Professional sales complete product offering Staff + LCD screen + Renowned brands + v
Slide 16: ME Shop under “Shared Retail”
ME Shop under “Shared Retail” Leverage the sharing functions of social media to tap into exponential growth opportunities • Cooperate with county-level High awareness Differentiation stores, forming a multi- & & dimensional sales network, low price high profit margin expanding to lower-tier markets
Slide 17: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 18: Enhance Product Selection Capability of Supply Chain
Enhance Product Selection Capability of Supply Chain Big data facilitates product selection, a prime factor to drive inventory turnover Continue to introduce popular + new & special products Popular products online High-volume products Enhance Dyson hairdryers Product selection New & special product
Slide 19: Technology Stimulates Online Retail System Evolution
Technology Stimulates Online Retail System Evolution In-depth application of technology throughout the retail system Service Consumption Technology Upgrade Improvements Offering one-stop service through shared cloud storage for online & Feedback offline businesses 01 visualization Cloud Big Data Com
Slide 20: Application of New Retail Technology
Application of New Retail Technology Connecting online and offline shopping procedures by digital technology, in-depth integration backed by customer data on cloud Beijing Xining Chengdu Xi’an Hangzhou Guangzhou 20
Slide 21: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 22: Develop a Reputable Logistics Services
Develop a Reputable Logistics Services Offering customers with one-stop logistics services with the “Home ∙ Living” concept; Door-to-door delivery with professional and efficient installation services to drive customer satisfaction Delivery and installation Delivery and installation On-time delivery
Slide 23: Continue to Develop self-operating Logistics System
Continue to Develop self-operating Logistics System Expediting warehouses construction for an extensive logistics network Ø Logistics Base ü To be in operation: Xi’an ü Under construction: Shenyang, Ningbo, Tianjin (Wuqing), Shanghai (Jiading) ü In project development stage: Changsha, Chengdu, Jinan
Slide 24: Expand the Core Competence of Logistics Services
Expand the Core Competence of Logistics Services “Installations upon delivery”: Transform from a household appliances retailer to a “Home∙Living” service provider Transform into a “Home∙Living “ provider TV delivery & installation: already covers 608 cities Air-conditioner delivery & installation: a
Slide 25: Develop High-reputation GOME House Manager Service
Develop High-reputation GOME House Manager Service Providing “VIP Service Package” for multiple product categories to build reputation Introducing “VIP Service Package” Brand reputation building during sales Cleaning One-touch Transparent Air-con One-on-one & Trade-in Price installation Service retu
Slide 26: Standardized Service Quality
Standardized Service Quality Standardized service quality to provide end-user needs: safety, professionalism, pricing GOME House Manager GMV ▲125% Standardized uniforms and tool kits Daily cleaning of cars and uniforms High YoY growth for comparable average monthly orders ▲287% 300+ service training
Slide 27: Service Availability of “GOME House Manager”
Service Availability of “GOME House Manager” One-stop service driving new business development; creating an extensive service coverage network Expanding the overall Xi’an Station coverage for access points Chongqing Station Increasing the number of regional access points GOME House Manager Shenyang
Slide 28: Service Goals of the “GOME House Manager”
Service Goals of the “GOME House Manager” Using GOME's IoT technology to offer customers with one-stop solutions for smart homes under the "Home∙Living" concept Central air-conditioning Filter renewal system Installation Services Water quality Heat Business IoT monitoring Cleaning Services Services
Slide 29: Agenda
1. Financial Highlights 2. Shared Retail Powered by “New Business, New Markets, New Technology” • "Home ∙ Living" Strategy Provides New Growth Opportunities • Store Network Penetration Drives Business in New Markets • Technology Stimulates Online Retail System Evolution • Being the First Choice of C
Slide 30: Income Statement Summary
Income Statement Summary (RMB million) 1H2017 1H2018 YoY change Revenue 38,073 34,706 (8.8)% Consolidated gross profit* 6,788 6,009 (11.5)% Consolidated gross profit margin 17.8% 17.3% (0.5) percentage point Profit/(loss) before finance 256 (435) (269.9)% cost/income and tax Profit margin 0.7% (1.3)
Slide 31: Financial Position
Financial Position Remarks：Discrepancies are caused by rounding off the figures. （RMB million） As of 31 December 2017 As of 30 June 2018 Change Financial Position Cash and cash equivalents 9,244 9,512 2.9% Pledged deposits 6,735 8,429 25.2% Pledged deposits ratio 0.5 percentage (excl. outbound guara
Slide 32: Consolidated Gross Profit Margin
Consolidated Gross Profit Margin (RMB million) 1H2017 1H2018 RMB million Revenue 38,073 34,706 17.8% Consolidated gross profit 6,788 6,009 17.3% Consolidated gross profit margin 17.8% 17.3% Gross profit margin from suppliers 14.9% 15.2% Other income and gains 2.9% 2.1% 6,788 6,009 Income from suppli
Slide 33: Store Indicator Analysis
Store Indicator Analysis Period End Sales Area Average Quarterly Sales per Store ‘000 sq. m. RMB million Quarterly Sales per sq.m. Same Store Sales Growth with RMB Comparable Number of Stores 1,000 990 978 1,484 1,448 33
Slide 34: T1 & 2 Markets Revenue Breakdown
T1 & 2 Markets* Revenue Breakdown In 1H 2018, Sales Revenue in T1 Market Decreased by 10.3% YoY, Sales Revenue in T2 Market Decreased by 8.9% YoY RMB million Sales Ratio of T1 & 2 Markets* Sales Revenue of T1 & 2 Markets* *T1 Market: Tier 1-2 Cities; T2 Market: Tier 3-4 Cities 34
Slide 35: Revenue and Gross Profit Margin by Category
Revenue and Gross Profit Margin by Category Revenue by Category 3.0% Gross Profit Margin by Category 20.4% * Digital & Others include Home furnishing and household, etc. Remarks：Discrepancies are caused by rounding off the figures. 35
Slide 36: Nationwide Store Network
Nationwide Store Network Group China As at 30 June 2018 GOME Dazhong CellStar Total Paradise Flagship stores 280 229 28 22 1 Standard stores 421 376 30 14 1 Specialized stores 883 757 69 8 49 County-level stores 283 266 14 3 - Total 1,867 1,628 141 47 51 Among them ：T1 Market (Tier 1-2 cities) 863 6
Slide 37: Top Suppliers
Top 5 Suppliers GOME Top 5 Suppliers (1H 2018) GOME Top 5 Suppliers (1H 2017) Remarks：Discrepancies are caused by rounding off the figures. 37
Slide 38: Thank you!
Thank you!