目录 - todayir.com · total retail market trend • online and offline integrated o2o operation...

目录

O2O Total Retail Results Highlights 1

3 Acquisition of the Target Company

2 GOME O2O Total Retail Strategy

4 Appendices

Content

MORE CHOICES BETTER LIVING

Sales Revenue

RMB31.69 Billion (+8.8%)

Dividend Payout Ratio

(40%)

Cash & Cash Equivalents

RMB10.7 Billion

Profit Attributable to Owners of

the Parent

RMB687Million (+15.9%)*

3

Financial Highlights

* Excluding one-off compensation received of RMB100 million in 2014, the profit attributable to owners of the parent for 1H2014

would be RMB593 million.


Operation Highlights

Mobile GMV

Y-o-Y Growth

304%

Mobile/Online GMV

42.6%

Online GMV

Y-o-Y Growth

151%

Members：150 Million

Active Members：60 Million

Online Orders (including platform) /Total Orders：20%+

New Stores: 117

Net store Increase: 81 T1 Market: 5

T2 Market: 76

SSSG Overall : 2.3%

SSSG T2 Market: 5.3%

4


Outperformed the Industry in Key Financial Indicators

for 10 Consecutive Quarters

17.1%

16.6%

16.3% 16.3%

15.5%

131H 13FY 141H 14FY 151H

1.3%

2.3% 2.5%

1.9% 2.2%

131H 132H 141H 142H 151H

1.2%

2.0%

2.4%

1.9%

2.2%

131H 132H 141H 142H 151H

10.2% 10.4%

7.4% 7.0%

8.8%

131H 13FY 141H 14FY 151H

18.3% 18.4% 18.5%

17.7%

131H 13FY 141H 14FY 151H

18.8%

0.3%

Sales Revenue Y-o-Y Growth Operating Profit Margin

Consolidated

Gross Profit Margin Operating Expense

Ratio Net Profit Margin

5 * Excluded non-operating factor: RMB100 million one-off compensation received in 2014.

0.3%

2.2%*

0.4%

2.0%* 18.5%*


Online GMV Performance

▲ 304%

181%

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2

Mobile GMV growth GOME Online Single Quarter GMV Growth

RMB Million

20141H 20151H

6


2014 1H 2015 1H

After-sales Services Profits

Financial Services GMV

Services Income Increased

2014 1H 2015 1H

Third-party Logistics GMV

2014 1H 2015 1H

▲ 337%

▲ 23.2%

▲ 80%

7

目录




4 Appendices

Content


Total Retail Market Trend

• Online and offline integrated O2O operation model would become the future

development trend of the industry.

O2O Trend

• In the future, shoppers, especially electrical appliances consumers, would find their

shopping experience alternating between online and offline.

Offline

Online

9


Blueprint of GOME Total Retail Strategy

Store PC

Terminal

Mobile

Terminal … Interface

platform

(Upgrade)

Open

Value Platform

(Upgrade)

GOME Total Retail Ecosystem

TV

Terminal

Fans Economy

Consumers can move freely across all shopping scenarios

Leveraging its solid, low-cost and highly efficient back-end supply chain, GOME focused on the front

end in the interface platform encompassing “online + offline + mobile terminals + other social

channels”. The platforms of procurement, logistics, after-sales, IT and financial services managed to

continuously enhance their value by using mainly the big data infrastructure, which in turn created an

O2O total retail ecosystem serving over 100 million consumers.

Logistics Big Data Financial

Services IT After-sales …

10

Procurement

O2O

Community


Interface Platform - Smart Store Experience

11

Apple Experience

Stores

Samsung Experience

Stores

Gree Lifestyle Stores

Siemens Experience

Stores

Kitchen and

Bathroom Hardware

Stores

Xiaomi Lifestyle Stores

Developed a series of smart device showrooms to provide a fun and enjoyable

shopping experience to customers. We believe that the offline channel will undergo a

re-valuation in the future.


Interface Platform- E-commerce Business

to Maintain Rapid Growth

PC 微店

IT System Financial

Services Procurement

s

Logistics After-Sales Core Advantages

GOME fans economy

T 1

T 2 T 3 T 4

T 5

Online GMV

CAGR of 100+% in 2015-2017

Micro Shops

2015 Target: 100,000 micro-shops

Incremental

markets

Enhance experience

Develop new markets

To foster the development of e-commerce and downward outreach of channels under the

O2O business model through our stores and supply chain.

To accelerate the development of community O2O and establish GOME-on-line as the

mainstream professional e-commerce retailer.

12


Interface Platform – Enrich Customer Experience

• China’s first online 3D home

decoration and interior design

platform.

• Cover 50 cities in China by

the end of 2015.

• Customers can enjoy one-

stop service from interior

design, renovation to home

appliances purchase.

Home Decoration &

Interior Design

Service

3D Technology

Member Gateway

Continue to Add

New Partners

13


GOME Community

O2O

Purchase

Warranty

Extension

Maintenance

Installation

Recycling

Interface Platform - O2O Total Retail Ecosystem

O2O “Services + Products” model to build GOME community

Targeted at communities within a 5-km radius of our stores, we

created zones with staff as the core component to offer services,

to enhance customer loyalty and build a stable customer group. .

Through micro shops, the Group is able to seamlessly engage

customers across an array of online, offline and mobile channels,

further expanding its product selection and completing the

ecosystem.

Online Offline

14


Value Platforms Provide a Solid Foundation

Procurement

Logistics

Big Data

Financial

Services

After-sales

15


Value Platform - Smart Products Procurement

16

Smart Appliances

Smart Home

Wearable Devices

Smart Transportation

Health and Medicare

Others

Smart Products

Procurement

10,000 + Brands

4 Million + SKUs

No. of Brands

Continue to Grow

Differentiated Products

Continue to Grow

2009 2014 20151H

1.2%

35% 33%

Procurement Platform - Smart Products Procurement: domestic home appliance market will embrace a new bout of upgrade in the consumption structure, while the mass replacement, digitization, personalization of products, coupled with diversified consumption habits, will drive the rapid development of emerging home appliances.


Value Platform - Internet TV

To forge an all-round internet ecosystem under the “Content Development + User Terminal

Manufacturing + Distribution Channels + Platform Operation” model.

To promote the introduction of customer flow from internet and television channels through

accessing the television terminal.

Manufacturer Content Development

Sales Channels Investors • By investing in Shenzhen MTC Co., Ltd, GOME will cooperate

with MTC, Oriental Pearl, SMG and Haier to develop Smart TV.

• On the terminals and platform operated by MTC, Oriental Pearl will provide valid licenses and television content, while GOME, with its unparalleled quality offline store channel resources, will be responsible for sales together with Haier.

17


Value Platform - Cross-border Supply Chain

Japan shopping channel

Korea shopping channel

French shopping channel

Germany shopping channel

18

To create a leading global cross-border E-Commerce platform.


Value Platform - Financial services

2015 1H Financial Services GMV: RMB700 Million

To launch Supply Chain Finance and Consumer Loans in Q3 and Q4 respectively

（国美供应链金融产品）

Wealth

Mgmt. Insurance Fund

Cross -

industry/

Innovation

Consumer

Finance

Supply

Chain

Finance

Crowd funding (Lite / Asset /

Charity)

P2P

Financing

Commercial

Notes

Fixed

Income

Mei Ying

Bao

（personal/

corporate）

Integration of Cross-industry Financial services

Fixed-term

Wealth

Mgmt.

Flexible-term

Wealth

Mgmt.

Wealth mgmt. linked

Insurance

Traditional

Insurance

(car insurance)

Travel

/Aviation

Insurance

Mei Tong

Card

Fund

Supermarket

Fund AIP

Investment

Advisory

Service

Cloud

Lending

Factoring

Bank

Acceptance

Bill

Consumer

Credit

Installment

Vehicle

Financing

Mei Tong

Card

19

目录




4 Appendices

Content


21

Areas where both Listed Company and Target Company have stores : Shanghai, Xian, Xiamen, Henan and Wuxi

Listed Company’s store in areas covered by Target Company

Jing-Jin-Ji

Metropolitan

Areas

Northeast -Eastern

Mongolia Economic Area

Yangtze River Economic Belt

Beibu Gulf Economic Zone

Acquisition of the Target Company-

To Increase Market Share with Nationwide Stores

The retail network of the Target Company has great potential and is highly complementary to the

Listed Company. Upon the completion of Acquisition, the Listed Company expects to upgrade

from a regional network to a nationwide Total Retail network.

Market Share

Other

Listed Company

Target Company

3%

5%

The combined market share accounts for approx. 8% of appliances industry

China’s household appliances total retail sales

valued RMB1.3 trillion in 2014. The market

share of Listed Company increased to approx.

8% from approx. 5% after the Acquisition.

Source: China Household Electrical Appliances Association

Target

Company

Overlapping

Areas

Listed

Company

Note: Reference is made to the company`s announcement dated 26 July 2015


To expand store network in tier-two market and consolidate local retail companies through

integrating the retail network and supply chain assets of the Target Company, so as to enable

deeper e-commerce market penetration.

Acquisition of the Target Company-

Accelerate Coverage of Tier- Two Market

22

To Integrate the Retail Network of the Target

Company

To Consolidate Local Retail Companies

To Set Up New Logistics and After-sales Service Centers

To Enable Deeper E-commerce Market

Penetration

Tier-One

Tier-Two

Tier-Three

Tier-Four

Tier-Five


Acquisition of the Target Company- Forming a Nationwide

Logistics and Warehousing Network

23 Note：Figures of Listed Co. as at 30 June 2015; while figures of Target Co. as at 31 March 2015

Regional Supply Chain and

Retail Business Coverage

Nationwide and

Unified Planning

and Management

GOME (Listed Co.)

Target Company Potential Synergies

To fully upgrade warehouse capacity

To accelerate inventory turnover and lower storage cost

To form a nationwide logistics and warehousing network

To enhance logistics service efficiency & reduce distribution cost

Geographic Coverage*

600+

County

2,500+

Village

45,000+

Town

To increase flexibility in handling orders and reduce fulfillment cost

21

Regional

DC

407

Municipal

DC

3.02M Sqm

Warehouse

Areas

Nationwide Infrastructure*

County Covered

Village Covered

Regional DC

Municipal DC

Warehousing area

200

1100

6

107

1.09

400

1400

15

300

1.93

To establish a nationwide logistics network with regional warehouses, municipal warehouses

and last-mile delivery and become one of the largest home appliance logistics networks in

China.


Optimize logistics services to enhance customer experience

2. To fully pledge for on-time delivery service to customers

1. The highest industry service standard

Service Benchmark：--“Three deliveries/day, precise delivery

and installation with delivery”

One-day delivery：178 cities

Half day delivery：400 cities

Second day delivery：915 cities

To fully reap the benefits of logistics competitive advantages and meet the needs of GOME +

Third Parties.

Xiaomi

Juhuixing

Gold Mantis

RT-MART

JINlLING

Midea

Samsung

3. 78 new merchants engaged GOME logistics services in 2015 Q2 and a total of 261

merchants signed up for GOME logistics services.

24

Huitongda

Acquisition of the Target Company- Forming a Nationwide

Logistics and Warehousing Network


Acquisition of the Target Company- Fully Integrate

Cloud Platform with After-sales Service

Driven by consumer needs and with a focus on solving problems faced by consumers,

GOME aims to enhance customer traffic to form a complete product and service cycle

and fulfil its mission to build long lasting customer relationships.

Low Customer

Traffic

High Customer

Traffic

Professional

Installation

Extended Warranty

Recycling Repair & Maintenance

Purchase

Returned

customer

25

Loyal Customers

Multiple Purchases

First-time Purchase

Second-time Purchase

Non-returning customers

Non- loyal customers

Relationship transformation


Acquisition of the Target Company- Fully

Integrate Cloud Platform with After-sales Service

Store Gome-

on-line

Key E-

commerce

enterprise

Taobao

GOME Cloud Platform for

After-sales Service

Installation Repair &

Maintenance Warranty

E Courier Recycling Service

Providers Mgmt.

Accessories Sales ┄

GOME Service Team Third Parties

Service Team

Housekeeper for Home Appliances

To operate over 2,000 after-sales service centers in more than 400 cities nationwide, building the

largest cloud platform for after-sales in China, providing professional after-sales service to GOME

and third parties.

26

176 234 410

795

1,327

2,122

Target Company

Listed Co. After Acquisition

Cities accessed

After-sales service centers

Cities accessed :

Listed Co. : 234

Target Co. : 176

After-sales service

centers:

Listed Co. : 1,327

Target Co. : 795


To realise the integration of the Listed and the Non-listed companies’ offline resources, transform the current regional retail network into a nationwide one, support the nationwide coverage of E-Commerce and ensure the effective and efficient implementation of the O2O “Total Retail” strategy.

27

Potential Synergies of The Acquisition

Sales

and Market

Share Growth

Cost Saving,

Improve Gross

Profit and

Optimize Cash

Flow

Corporate

Governance Enhancement

1

2

3

Through integration of highly complementary store networks to accelerate penetration

into fast-growing second- and third-tier cities

E-commerce to achieve nationwide coverage and promote rapid sales growth

Multi-brand strategy, with brands including GOME, Dazhong, China Paradise and

Black Swan, to better serve specific market segments

To enhance the consumer experience (with its integrated procurement system and

multi-brand strategy, the Group can provide more differentiated products to customers

at competitive prices; meanwhile, customers can enjoy faster, more convenient

logistics and better after-sales service with the nationwide logistics network)

To improve gross profit margin with stronger bargaining power due to combined and

larger scale of procurement

To further increase scale of procurement orders

To improve the Group’s cash flow and financial health by reducing buffer stock

To integrate storage resources and reduce rental costs

To enhance efficiency of distribution and reduce order fulfilment cost

Further consolidation of after-sales resources to facilitate cost control

To improve financial transparency and benefit from more favourable financing terms

To remove limitations on connected transactions to unleash business potential

To optimize management structure and enhance efficiency of corporate governance


28

Expanding GOME Total Retail Ecosystem – Move Faster

Toward Goal of Building Another GOME by 2017

To develop a GOME total retail ecosystem with 150 million

members+12,000 suppliers+10,000 merchants+100,000 employees &

fans, and continue to grow.

目录




4 Appendices

Content

Note: Discrepancy due to rounding error

Income Statement Summary

(RMB Million) 2014 1H 2015 1H Change

Revenue 29,124 31,692 8.8%

Consolidated Gross Profit* 5,384 5,611 4.2%

Consolidated Gross Profit Margin* 18.5% 17.7% (0.8)p.p.

Operating Profit* 638 694 8.8%

Operating Profit Margin* 2.2% 2.2% -

Profit Before Tax* 746 801 7.4%

Profit Attributable to Owners of the

Parent * 593 687 15.9%

Net Profit Margin* (attributable to owners of the parent)

2.0% 2.2% 0.2p.p.

30

* Excluded non-operating factor: RMB100 million one-off compensation received in 2014.

（RMB Million） As of 31 Dec 2014 As of 30 Jun 2015 Change

Balance Sheet

Cash & Cash Equivalents 8,794 10,716 21.9%

Pledged Deposits 6,073 4,083 (32.8)%

Pledged Deposit Ratio (excl DGPOL) 30.2% 32.2% 2.0 p.p.

Inventories 10,926 9,785 (10.4)%

Inventory Turnover Days 68 69 1Day

Trade Payables 7,221 7,680 6.4%

Trade Payables Turnover Days 47 50 3Days

Bills Payable 13,660 12,695 (7.1)%

Bills Payable Turnover Days 91 88 (3)Days


Balance Sheet and Cash Flow Statement *

* For the six-month period ended 30 Jun.2015, key performance indicators for cash flow: net

operating cash flow reached RMB1.76billion; investment cash flow reached RMB 150 million,

financing cash flow reached RMB 9million.

31


RMB Million

(RMB Million) 2014 1H 2015 1H

Revenue 29,124 31,692

Consolidated Gross Profit 5,484 5,611

Consolidated Gross Profit Margin 18.8% 17.7%

Gross Profit Margin from

Suppliers 15.2% 14.9%

Other Income 3.6% 2.8%

Income from suppliers, net 0.6% 0.6%

Mgmt & purchasing services

fees from the Non-listed

GOME Group 0.5% 0.5%

Income from products

installation 0.2% 0.2%

Gross rental income 0.5% 0.5%

Income from

telcommunication service

providers 0.5% 0.3%

Income from extended

warranties 0.3% 0.4%

Compensation received 0.3% -

Others 0.7% 0.3%

Consolidated Gross Profit Margin

Excluded RMB100 million one-

off compensation received, the

consolidated gross profit would

be 18.5% for 20141H

32

15.2% 14.9%

0.6% 0.6%

3.0% 2.2%

2014 1H 2015 1H

Other income

Other net income from suppliers

Gross margin from suppliers

5,484 5,611

0.3%

18.8%

17.7%

3,758 3,684 3,614 3,592 3,604 3,589 3,660 3,732 3,719 3,934

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2

Period-end Sales Area

Average Quarterly Sales Per Store

1,000 sq.m

RMB Yuan RMB Million

Average Sales Per Sq.m.

Store Indicators

10.7 12.9 12.7 13.1

11.7 13.5 12.9 13.1

11.7 13.1

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2

3,086 3,748 3,721 3,511 3,943

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2

4,074 3,588 3,873 3,908 3,977

1,081 1,073 1,063 1,075 1,082 1,088 1,117 1,132 1,136 1,213

13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2

Store number

33

Tier-One* & Tier-Two* Market Revenue

**Tier-one market: tier-one & two cities

*Tier-two market: tier-three & four cities

20151H Tier-One market sales ▲ 6.5% Y-o-Y, Tier-Two market sales ▲ 18% Y-o-Y

RMB Million

79.9%

20.1%

78.2%

21.8%

Tier 1&2 cities Tier 3&4 cities

20141H 20151H

23,256

5,868

24,769

6,923

Tier 1&2 cities Tier 3&4 cities

20141H 20151H

Tier-One & Tier -Two Market Sales Ratio Tier-One & Tier -Two Market Sales

34

18%

10% 8% 8% 7% 6% 5%

38%

16%

10% 9% 8% 7% 6% 5%

39%

Beijing Guangzhou Shenzhen Shanghai Chengdu Xi'an Chongqing Others

20141H 20151H

20151H Revenue：RMB31.69Billion

20141H Revenue：RMB29.12Billion

Revenue by Region

35

16.3% 16.2% 16.8%

11.7%

18.8%

9.4%

11.1%

15.1%

16.5% 16.4%

11.9%

18.4%

8.8%

10.9%

AV Air-con Fridge

Washing Machine

Tel-com Small

appliances

Computer Digital

20141H 20151H

Gross Profit Margin by Category Revenue by Category

Revenue & Gross Profit Margin by Category

36

22%

18%

20%

14%

13%

9%

4%

20%

18%

20%

16%

14%

9%

3%

AV Air-con Fridge

Washing Machine

Tel-com Small

appliances

Computer Digital

20141H 20151H

Store Network

As of 30 Jun 2015 Group GOME China

Paradise Dazhong Cellstar

Flagship stores 258 194 36 28 -

Standard stores 352 294 42 16 -

Specialized stores 603 468 80 10 45

Total: 1,213 956 158 54 45

Among： T1 Market 698 508 106 46 38

T2 Market 515 448 52 8 7

Net store increase 81 76 (1) - 6

Number of stores newly

opened: 117 102 6 3 6

Among： T1 Market 33 24 5 - 4

T2 Market 84 78 1 3 2

Stores closed 36 26 7 3 -

Among： T1 Market 28 18 7 3 -

T2 Market 8 8 - - -

Number of cities newly

accessed 310 274 60 1 6

Among： T1 Cities 27 21 9 1 1

T2 Cities 283 253 51 - 5

Cities newly accessed 41 41 - - -

37

9.9% 9.1% 8.5% 8.2% 7.6%

43.3%

Haier Gree Apple Midea Samsung Top FiveSuppliers

11.9% 9.9% 7.7% 6.8% 6.0%

42.3%

Samsung Haier Midea Gree Apple Top Five Suppliers

20141H GOME Top 5 Suppliers

20151H GOME Top 5 Suppliers

Top 5 Suppliers

38

Thank you！

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