GOME Retail Holdings Limited · HKEX:493
GOME Retail — GOME Electrical Appliances Holding — H1 2004 Earnings Presentation
15 slides from GOME Retail's earnings presentation, Nov 29, 2004
Slide 1: GOME Electrical Appliances Holding Limited 2004 Interim Results Review
GOME Electrical Appliances Holding Limited 2004 Interim Results Review November 29, 2004 HK000IW6
Slide 2: GOME – The No.1 Electrical Appliances Retailer in PRC
GOME Electrical Appliances Holding Limited z Largest retail chain operator of electrical Expansion of Retail Franchise appliances and consumer electronic products in PRC(1) Number of Retail Outlets(3) 140 60% z No. 1 market share in China – 2.5% of total R= 116 120 TD CAG dollar sales volume in 2003
Slide 3: History of GOME
History of GOME Jul 2004 China Eagle Group acquired Ocean 1993 Town International Inc. which holds 65% Nov 29, 2004 Developed chainstore network of GOME Appliance Announced 1st interim under the “GOME Electrical Company name changed to “GOME results since Appliances” brand name Electrical Applia
Slide 4: Corporate Reorganization
Corporate Reorganization z China Eagle acquired 65% shareholding Current Corporate Structure(1) in GOME Appliance in July 2004 Mr. Wong Public z Company name changed from “China Eagle Group Company Limited” to 74.9%(2) 25.1% “GOME Electrical Appliances Holding GOME Electrical Appliances Limited” Hol
Slide 5: Key Financial Highlights
Key Financial Highlights z Remarkable growth in business performance attained: ¾ Revenue increased by 45.1% to HK$6,103 mm ¾ EBITDA increased by 145.7% to HK$447 mm ¾ Operating profit increased by 152.1% to HK$416 mm ¾ Net profit(1) up by 189.4% to HK$246 mm z Gross margin and net margin(1) increase
Slide 6: Summary Financial Results
Summary Financial Results (HKD mm except per share data) Six Months Ended Sep 30(1) % Change 2003 2004 Revenues 45.1% 4,205 6,103 Gross Profit 101.3% 304 612 Other Operating Income 68.9% 151 255 EBITDA 145.7% 182 447 Operating Profit 152.1% 165 416 Net Profit (After MI) 189.4% 85 246 EPS – Basic and
Slide 7: Summary Financial Results (Cont'd)
Summary Financial Results (Cont’d) (HKD mm) As of Sep 30 As of Dec 31, 2003 2003 2004 Net Cash 1,328 1,089 1,406 Return on Average Equity(1) 19.1% 11.0% 26.2% Account Receivable Days 0.2 N/A 0.3 Account Payable Days 94.2 N/A 89.3 Inventory Turnover (Days)(2) 32 N/A 35 z On November 17, 2004, GOME an
Slide 8: Strong Revenue Growth
Strong Revenue Growth Revenue Performance Key Drivers (HKD bn) z Macro economic growth in PRC 10.0 2% +4 8.8 z Continuous retail chain network 8.0 expansion 5% 6.2 +4 6.1 6.0 z Enhanced market penetration through 4.2 strong sales and marketing efforts 4.0 2.0 0.0 2002 2003 6M 6M (1) (1) '03 '04 Favo
Slide 9: Improving Revenue Mix
Improving Revenue Mix Revenue Breakdown by Product 2001 Six Months Ended Sep 30, 2004 Digital Digital 5.3% 7.5% Small Electrical Appliances Small Electrical Appliances Audio Visual 13.6% 9.8% 26.4% Computers 0.1% Computers Telecommunications Audio Visual 3.9% 4.6% 45.6% Telecommunications 15.7% Air
Slide 10: Expanding Gross Profit Margin
Expanding Gross Profit Margin Gross Profit and Margin Key Drivers Gross Profit Gross Margin (HKD mm) (%) z High-quality products and extensive 10.0% 900 10.0% product selection support significant 800 revenue growth 7.2% 7.2% 8.0% 700 6.4% z Continue to leverage significant purchase 600 6.0% volume
Slide 11: Increasing Contribution from Other Operating Income
Increasing Contribution from Other Operating Income Other Operating Income Composition of Other Operating Income Other Operating Other Operating Income/ Six months ended Sep 30, 2004 Income Total Revenue Management Income (HKD mm) (%) from Parent 6.6% 400 4.2% 4.5% Others Promotion 350 3.6% 4.0% 16.
Slide 12: Optimal Operation Management
Optimal Operation Management Inventory Turnover Working Capital (Days) (Days) 40 (1) 110 35 94.2 35 32 100 89.3 90 30 26 80 25 70 60 54.1 20 50 15 40 10 30 20 5 10 0.3 0.2 0.3 0 0 2002 2003 6M '04 2002 2003 6M '04 Accounts Receivable Days Accounts Payable Days z GOME’s operations and working capital
Slide 13: Strong Growth of Net Profit
Strong Growth of Net Profit Net Profit and Margin Key Drivers Net Profit Net Margin(2) (HKD mm) 4.0% (%) z Strong revenue growth and gross margin 300 4.0% expansions 250 z Other operating income is an important 3.0% 200 contributor to the bottom line 1.9% 2.0% 150 2.0% z Effective cost control polic
Slide 14: Growth Strategy
Growth Strategy Strengthen Leading Market Position Superior Products and Professional Customer Service with Competitive Pricing Effective Marketing and Promotional Campaigns Improve Operational Efficiency GOME aims to provide the broadest product range with competitive pricing to customers, enhance
Slide 15: Thank You
Thank You
GOME Electrical Appliances Holding — H1 2004 Earnings Presentation on 6ix