Gome Retail Holdings Limited · HKEX:493
Gome Retail — H1 2021 Earnings Presentation
47 slides from Gome Retail's earnings presentation, August 2021
Slide 1: 2021 Interim Results Announcement
2021 Interim Results� Announcement August 2021
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: Contents
Contents 01、 Macro Economy with Increasing Reliance on Domestic Demand Driven by More Favorable National Policies 02、 Following National Strategies and Policy Trends Closely and Accelerating the Second Phase of “Home·Living” Strategy 03、 Appendix 3
Slide 4: Macro Environment and Policies Provide Further Upsides
Macro Environment and Policies Provide Further Upsides Continuous tightening of anti-monopoly policy and other measures portrays a fairer competitive environment for GOME's development ·China has implemented successively anti-monopoly measures so far this year against internet platform enterprises i
Slide 5: Contents
Contents 01、 Macro Economy with Increasing Reliance on Domestic Demand Driven by More Favorable National Policies 02、 Following National Strategies and Policy Trends Closely and Accelerating the Second Phase of “Home·Living” Strategy 03、 Appendix 5
Slide 6: Strategic Position: Local Retailer with Cross-category, Cross-market, Cross-channel Ecosystem
Strategic Position: Local Retailer with Cross-category, Cross-market, Cross- channel Consumption Ecosystem to Advocate Sharing and Co-development GOME ecosystem Mission： Promote efficiency through technology Build better life through wisdom Extra Home discount Anxun decoration Logistics GOME After-s
Slide 7: Create technology-driven retailing, enhance service capabilities
Southern China Headquarters of GOME Recent Policy： The Ministry of Commerce indicated that in the second half of the year, China would “promote the development of new forms of consumption by supporting and encouraging traditional commercial enterprises to accelerate digitalization and artificial int
Slide 8: Respond to National Policies by Developing Technology-driven Retailing
Respond to National Policies by Developing Technology-driven Retailing to Promote the Development of New Forms of Consumption GOME Retail actively responded to the national policies by accelerating the establishment of an integrated online and offline multi-format comprehensive retail service system
Slide 9: Retailing Service Capabilities Improved Significantly
Retailing Service Capabilities Improved Significantly Revenue Growth YoY ：36.5% Consolidated Gross Profit Margin Growth YoY ：2.7 percentage points Registered members：228 million Supply chain customization ratio: 42% Active users：: average daily active users of nearly 2 million Total number of offlin
Slide 10: Leverage supply chain advantages to boost physical economy
Southern China Headquarters of GOME Recent policy： The Politburo meeting proposed to promote the quantity and quality of“small giant enterprises”, facilitating the real economy, especially the manufacturing industry, to become stronger and better, and stabilized and strengthen industrial supply chai
Slide 11: Supply Chain with High Efficiency and Low-cost
Supply Chain with High Efficiency and Low-cost Supply Chain Platform Entertainment Technology Affordability Services Merchants Invitation + Self-operation + Customization ·Further develop the home appliance supply chain, optimize the procurement processes, operation County-level stores 600,000+ and
Slide 12: Establish a Delicate Supply Chain System Based on Intelligent Customization
Establish a Delicate Supply Chain System Based on Intelligent Customization and Authentic Products Authentic Affordability Technology Services Implement reverse customization Select products with high cost- Shorten supply chain cycle through through big data analysis, and Punctual and fast delivery
Slide 13: Cross-category: Diversified Supply Chain System
Cross-category: Diversified Supply Chain System Sound GOME Jixun GOME Hotpot Enlightenment Electronics Telecomm Wine food GOME GOME Community Home Aiyowei Customized cellar Store decoration Customization Products GOME Paitu Entertaining Kitchenware general Customization shopping merchandise 13
Slide 14: Cross-channel Output
Cross-channel：“Self-Operation + Third Party + Agency” Model to Achieve Cross-channel Output On channel operation, in addition to achieving sales through self-operated offline platforms, online “FUN” APP platform and third-party platforms (JD, PDD, TikTok, etc.), GOME’s supply chain continues to coop
Slide 15: Cross-market: Empowering County-level Stores in Low-tier Markets
Cross-market: Empowering County-level Stores to Jointly Explore Blue Ocean Opportunities in Low-tier Markets In addition to the first and second tier cities, Gome's supply chain continues to extend to low-tier markets, covering all counties and towns in the third to sixth tier cities. Prioritize lar
Slide 16: Cross-market: Cross-border Supply Chain and Overseas Markets
Cross-market: Establish Cross-border Supply Chain System and Expand Overseas Markets to Support the“Belt and Road” Initiative In addition to serving domestic markets at all levels, GOME plans to implement the “Belt and Road”initiative and export its quality supply chain to overseas markets to litera
Slide 17: Online: leverage entertainment, tournaments and social networking
Southern China Headquarters of GOME Recent policy： The Ministry of Commerce stated its encouragement for "the creation of a strong consumption atmosphere. Under the premise of ensuring effective control and prevention of pandemic, it plans to motivate local enterprises in organizing and staging vari
Slide 18: Entertainment oriented: Bidding, Group Buying and Entertainment
Entertainment oriented: Combination of Special Promotions Consisting of Bidding, Group Buying and Entertainment Special promotion consisting of bidding, group buying and entertainment Entertainment-oriented marketing Group Bidding Entertainment Bidding, group buying Livestreaming Talent show buying
Slide 19: Use Livestreaming, Short video to Arouse Consumption Appetite
Use Livestreaming, Short video and Other Entertainment Means to Arouse Consumption Appetite ·Number of orders: 43,000 ·Dual channels of ·617 Debut celebrity ·Livestreaming : 32 shows “store + live streaming” livestreaming ·Total product exposure: 19 million+ Livestreaming by TikTok KOL Livestreaming
Slide 20: Tournament oriented: Leverage Special Festivals
Tournament oriented : Tournaments are also Festivals, Leverage Special Festivals for Prospering Sales and Market Development July 24-25: “FUN” APP co-hosted Euro Cup “Football & FUN” showcased the "2021 Super Music Festival" with iQiyi crossover between sports and retail As a continuation of the “FU
Slide 21: Social Networking: Accelerating Fission and Conversion
Social Networking: Accelerating Fission, Speeding Up Conversion and Enhancing Efficiency Employees of GOME stores acted as seed users to establish grid-based communities, and rapidly expanded the membership scale through social-networking User C2C Cumulative number of Number of product sharing ·Soci
Slide 22: Offline: in-depth integration with online operations
Southern China Headquarters of GOME Recent policies： “Guidance on Construction of Urban 15-Minute Convenient Living Circle” proposed to build “100 cities and 1,000 circles” by focusing on development of branded chain stores and encouraging “one store with multiple functions”.It also recommended to e
Slide 23: Innovative Consumption Experience: Multi-formats, Cross-channel, Full-scenario
Provide an Innovative Consumption Experience with Features of Multi-formats, Cross-channel and Full-scenario Driven by the integration of offline platforms and online “FUN” APP with focus on new retailing and new services, GOME stores provide shopping experiences with features of multi-formats, cros
Slide 24: Create Social Living Room with One Store with Multiple Functions
Create “Social Living Room” in Urban with the Concept of “One Store with Multiple Functions” One store with multiple functions Social living room Reuse of space：Sharing less frequently used space to enhance the utilization rate of space and resources Reuse based on time slots：Sharing economy, in ter
Slide 25: Video Shopping Guide Enables Cross-channel Reuse of Scenarios
Video Shopping Guide Enables Cross-channel Reuse of Scenarios for Sharing, Interaction and Sense of Technology ·Full-scenarios: in-store experience, cloud-based self-service, premium home services; Sharing ·Full-process: convenient and dedicated cloud-based and offline services before, during and af
Slide 26: Building an Urban 15-minute Convenient Living Circle
Integrating Commercial and Social Attributes to Build an Urban 15-minute Convenient Living Circle Phone repair Manicure Mini convenience Convenient, Hairdressing Newspapers and store magazines standardized, intelligent, high-quality Vegetable and fruit retailing Self pick-up locker Semi-finished dis
Slide 27: Extending and Widening Service Model
Extending and Widening Service Model to Provide Convenience and Benefits to the Public Promote the integration of offline and online operations, integration of store and home delivery, combined delivery for end users and integrated operation of store and warehouse delivery delivery Installation Repa
Slide 28: Implementing rural revitalization and improving logistics service capabilities
国美华南总部 Recent policy： The Politburo meeting emphasized "rural revitalization" and requested to accelerate the penetration of e-commerce system and delivery and distribution system in counties and villages. The Ministry of Commerce proposed to increase the efforts of rural market development, and acc
Slide 29: Logistics Services with Direct Access to Counties
Logistics Services with Direct Access to Counties to Deeply Explore Demand Potential and Driving Rural Consumption Upgrade Home delivery and installation: covering 2,334 areas with a coverage rate of 84.2% Home repairing: covering 2,277 areas with a coverage rate of 82.1% Home cleaning: covering 2,2
Slide 30: High Standard Service Experience: Timely and Fast Delivery
High Standard Service Experience: Timely Delivery, Fast Delivery and Quality Experience ·On-time delivery service, providing customers with 4 types of on-time delivery service based on date, morning or afternoon, two-hour interval, night time and weekend. Timely delivery ·Providing customers with cu
Slide 31: Provide Supply Chain Solutions for Various Industries
Provide Supply Chain Solutions for Various Industries During 2021H1, GOME Anxun Logistics has actively explored potential clients and provided supply chain solutions for various industries One stop standard large cargo warehouse distribution service Whole network Punctual Professional Whole network
Slide 32: Open and Sharing At-home Service System
Open and Sharing At-home Service System Service and product Service chain solution Service empowerment Open service platform For customers For brand merchants For service outlets Provide services for the whole Provide comprehensive Provide empowerment life cycle of home appliances service solutions
Slide 33: Advocate fair competition and sharing and co-development
Southern China Headquarters of GOME Recent policies： Strengthen regulation, improve market discipline, promote fair competition, tackle monopoly, and prevent disorderly expansion of capital. GOME’s action： Advocate fair competition and establish itself as a retailing service provider with the philos
Slide 34: Establish an Open Platform for Sharing and Co-development
Establish an Open Platform for Sharing and Co-development “FUN”APP Sharing and co- GOME’s Operation Traffic alliance development platform platform capabilities efficiency Intelligent CEO Suppliers（S） Business（B） Customer（C） ·Obtain more quality merchants through the platform ·Provide dedicated and c
Slide 35: Establish an Efficient Retail Sharing Ecosystem
Establish an Efficient Retail Sharing Ecosystem Decentralized retailing infrastructure: driven by GOME's retailing capabilities, it empowers industrial partners to integrate more retailing resources and build a more efficient retail industry sharing ecosystem. Mutual recognition Supply chain Managem
Slide 36: Establish a Buddy Circle for Sharing and Co-development
Establish a " Buddy Circle" for Sharing and Co-development Through cooperation in capital, supply chain, channels and industry chain, three parties will join hands to build a large consumption ecological strategic platform underpinned by flat, sharing and decentralization Extensive development of bi
Slide 37: Closely Follow National Strategies and Accelerate Second Phase of Home Living Strategy
We will Closely Follow National Strategies and Policy Trends and Accelerate the Second Phase of “Home Living”Strategy We are glad to see what GOME has been doing in recent years is highly in line with the policy guidance. In the future, we will continue to persist in implementing national strategies
Slide 38: Contents
目录 01、 Macro Economy with Increasing Reliance on Domestic Demand Driven by More Favorable National Policies 02、 Following National Strategies and Policy Trends Closely and Accelerating the Second Phase of “Home·Living” Strategy 03、 Appendix 38
Slide 39: Income Statement Summary
Income Statement Summary （RMB million） 2020H1 2021H1 YoY Change Revenue 19,075 26,040 36.5% Consolidated Gross Profit 2,222 3,711 67.0% Consolidated Gross Profit Margin 11.6% 14.3% 2.7 percentage points Loss Before Finance Cost and Tax (2,005) (1,265) (36.9)% EBIT Margin (10.5)% (4.9)% 5.6 percentag
Slide 40: Financial Position
Financial Position （RMB million） As of 31 December 2020 As of 30 June 2021 Change Financial Position Cash and Cash Equivalents 9,597 6,079 (36.7)% Pledged Deposits 14,545 14,144 (2.8)% Pledged Deposits Ratio 10.0 percentage 28.9% 38.9% (excl. Loan Deposit and Interest Reserve) points Inventories 8,3
Slide 41: Consolidated Gross Profit Margin
Consolidated Gross Profit Margin （RMB million） 2020H1 2021H1 2.6 % 2.3% Revenue 19,075 26,040 Consolidated Gross Profit 2,222 3,711 2.6% Consolidated Gross Profit Margin 11.6% 14.3% 12.0% Gross Profit Margin from Suppliers 9.0% 12.0% 9.0% Other Income and Gains 2.6% 2.3% -Income from Platforms* 0.2%
Slide 42: Revenue Breakdown by Tiers of Cities
Revenue Breakdown by Tiers of Cities 2020H1 2021H1 8.3% 12.9% 22.4% 18.5% 69.3% 68.6% Tier 1-2 cities Tier 3-4 cities County-level cities 42
Slide 43: Nationwide Store Network
Nationwide Store Network China As of 30 June 2021 Group Total GOME Dazhong Cell Star Paradise Flagship Stores 267 220 27 20 - Standard Stores 945 859 60 22 4 Decoration Materials +Home 25 24 1 - - Furnishing In-store Shops County-level Stores 2556 2326 159 71 - Supermarket Stores 102 87 7 1 7 Total
Slide 44: 2021H1 FUN APP Business Highlights
2021H1“FUN”APP Business Highlights Achieved breakthrough in total number of buyers, purchased products and orders The total number of buyers increased The total number of purchased products and about 10 times YoY orders increased nearly 4 times YoY 25,000,000 18,000,000 12,000,000 16,000,000 10,000,
Slide 45: 2021H1 FUN APP Business Highlights
2021H1 “FUN”APP Business Highlights Significant increased in platform activation and awareness, accelerated growth in active users and registered members Number of active users Number of new visitors and registered Increased by 3 times YoY members increased significantly 40,000,000 1,800,000 35,000,
Slide 46: 2021H1 FUN APP Business Highlights
2021H1 “FUN”APP Business Highlights The number of SKU exceeded 600,000, continuous enrichment of products portfolio promotes rapid growth of user repurchase Products portfolio continuously expand Average monthly repurchase number 700,000 450,000 600,000 400,000 ~10X 500,000 350,000 400,000 300,000 2
Slide 47: Thanks!
Southern China Headquarters of GOME Thanks！