Gome Retail Holdings Limited · HKEX:493

Gome Retail — GOME Electrical Appliances Holding — Q1 2011 Earnings Presentation

15 slides from Gome Retail's earnings presentation, May 26, 2011

  1. Slide 1: First Quarter 2011 Results Announcement

    First Quarter 2011 Results Announcement May 26, 2011

  2. Slide 2: Disclaimer

    Disclaimer  This presentation and the accompanying slides (the “Presentation”) which have been prepared by GOME Electrical Appliances Holding 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

  3. Slide 3: Table of Contents

    Table of Contents  First Quarter 2011 Business Review  First Quarter 2011 Financial Review 2011 Q1 Results Announcement | Page 2

  4. Slide 4: On Course for a Great Year Ahead

    On Course for a Great Year Ahead Revenue and net profit  As a result of successful implementation of the Group’s Five-Year Strategic Plan, revenue and net profit grew by 16.1% and 65.8% respectively, compared with the same period last year Store network expansion and  Opened 37 stores and closed 7

  5. Slide 5: Income Statement Summary and Analysis

    Income Statement Summary and Analysis RMB Million 2010 Q1 2011 Q1 Change % Revenue 11,782 13,677 16.1% Consolidated Gross profit 1,967 2,546 29.4% Profit from Operating Activities 532 685 28.8% Profit before Tax 450 714 58.7% Net Profit Attributable to Owners of the 333 552 65.8% Parent Company Cons

  6. Slide 6: Considerable Year-over-Year Improvement in Consolidated Gross Profit Margin

    Considerable Year-over-Year Improvement in Consolidated Gross Profit Margin % of Revenue RMB million 16.7% 18.6% RMB million 1,967 2,546 Items 2010 Q1 2011 Q1 1.9% Revenue 11,782 13,677 1.7% 3.5% Other Income and gains 796 741 5.1% Include： 13.2% Income from suppliers 606 473 9.9% Management fee fro

  7. Slide 7: Controlled Expenses

    Controlled Expenses As % of Revenue 2010 Q1 2011 Q1 Change % Selling & Distribution 9.5% 11.1% 1.6 Percentage Pts Rent 3.9% 4.5% 0.6Percentage Pts Sales Salaries 2.1% 2.8% 0.7Percentage Pts Other S&D 3.5% 3.8% 0.3Percentage Pts Administrative 2.0% 2.1% 0.1Percentage Pts Other 0.7% 0.4% (0.3) Percent

  8. Slide 8: Operating Financials and Analysis

    Operating Financials and Analysis RMB million 31st Dec 2010 31st Mar 2011 Change % Cash and Cash Equivalents 6,232 6,797 9.1% Pledged Deposit 6,268 6,042 (3.6%) Inventory 8,085 8,228 1.8% Trade Payables 5,758 4,492 (22.0%) Bill Payables 11,142 11,992 7.6% Inventory Turnover Days 59 62 3 Days Trade P

  9. Slide 9: Same Store Sales Continue to Trend Up

    Same Store Sales Continue to Trend Up Same Store Sales Growth Sales(RMB billions) 14 13.6 13.7 26.8% 23.9% 22.6% 13.5 13.1 14.1% 13 7.6% 12.5 12.4 2.8% 12 FY2009 10 Q1 10 Q2 10 Q3 10 Q4 11 Q1 11.8 11.5 11 Comparable stores : 10.5 532 662 651 647 638 680 10 Q1 10 Q2 10 Q3 10 Q4 11 Q1 2011 Q1 Results

  10. Slide 10: Appendix

    Appendix

  11. Slide 11: Improving Category Gross Margins

    Improving Category Gross Margins 20% 15.7% 15% 14.3% 14.0% 13.9% 13.5% 12.4% 10.1% 10.6% 9.8% 9.7% 10% 9.0% 9.0% 7.8% 6.1% 5% 0% AV Air Con Refr&Wash Telecom Small Computer Digital Appliances 2010 Q1 2011 Q1 2011 Q1 Results Announcement | Page 10

  12. Slide 12: Product Mix Analysis

    Product Mix Analysis Digital Digital Computer 7.4% Computer 8.0% AV 7.2% AV AV 7.1% 31.4% 29.4% Aircom Small Appliances 12.3% Small Refr&Wash appliances 12.6% Telecom Small appliances Telecom 13.4% Aircom Computer Telecom Aircom 9.9% 12.4% Refr&Wash 13.7% Digital 18.4% Refr&Wash 16.8% 2010 Q1 2011 Q

  13. Slide 13: Stable Supplier Relationships

    Stable Supplier Relationships Top 5 Supplier’s for 2010 Q1 31.6% 9.6% 8.1% 5.0% 4.9% 4.0% Haier Samsung Sharp Midea Nokia Total Top 5 Top 5 Supplier’s for 2011 Q1 33.7% 9.9% 8.7% 6.3% 4.4% 4.4% Samsung Haier Midea Sony Sharp Total Top 5 2011 Q1 Results Announcement | Page 12

  14. Slide 14: Store Network Coverage

    Store Network Coverage As of March 31, 2011 Group GOME China Paradise CellStar Flagship stores 102 85 17 0 0 718 603 115 Standard stores (incl. supermarket stores) Specialized stores 36 3 1 32 Total: 856 691 133 32 Tier 1 Market 535 407 102 26 Tier 2 Market 321 284 31 6 Net store increase (decrease)

  15. Slide 15: Thank you

    Thank you 2011 Q1 Results Announcement | Page 14

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