EQS-News / 12/08/2020 / 10:33 UTC+8
GOME's Super Live Streaming Events Recorded New High
Empowering and Accelerating the Future Development of Local Digital Retail
Industry
GOME (493.HK) has completed its third super live streaming events "Super
Shopping Across China For a Better Life" with CCTV News last
week, and then joined hands with JD.com to announce their strategic
cooperation on annual RMB30,000 million procurement. It will make good use
of mutual advantages on various resources, enable both companies further
expand their business.
Since the record-breaking live streaming event "Fighting For a Better Life"
co-organized with CCTV News has completed on 1 May 2020 and
achieved sales revenue of approximately RMB500 million within 3 hours,
GOME's live streaming events co-operated with its business partners had
become a "hot" topic in China. According to market sources, these super live
streaming events have recorded sales revenue of approximately RMB4,000
million in recent two months.
Although as stated in the announcement that GOME's sales revenue for the six
months ended 30 June 2020 (the "Reporting Period") is expected to be
impacted by the outbreak of novel coronavirus ("COVID-19"). However, GOME
withstood this stress test and its affected bulk home appliance business has
improved in the second quarter this year following the gradual alleviation
of the epidemic, achieved 103% sales growth quarter on quarter. Especially
in June 2020, sales revenue was basically flat as compared with the
corresponding period last year. The consolidated gross profit margin has
shown a trend of month-on-month recovery in the second quarter and reached
approximately 15% in June.
During the Reporting Period, GMV of the Group is expected to be flat as
compared with the corresponding period last year. Among which, GMV of online
community + GOME APP is expected to grow by over 70% and daily GMV exceeded
RMB 1 billion. In the meanwhile, the number of online communities of the
Group grew over 40% year on year to over 200,000 with more than 66 million
users, which demonstrated 65% increase year on year. With regard to capital,
the Group maintained sufficient capital after the full repayment of overseas
bonds with a principal amount of US$500 million in total during the
Reporting Period. As of 30 June 2020, the Group's cash and cash equivalents
are expected to exceed RMB10,000 million. In generally, the impact of the
epidemic on the Group's business was transient and temporary. Leveraging the
competitive advantages gained over the years in respect of nationwide
chain-store network, new technologies, online-offline integration, supply
chain, logistics and professional services, the Group will continue to
explore opportunities of the retail industry, grasp the development
potentials arising from consumption upgrade, 5G and IoT, leading and further
probing the new development of retail industry.
Further enhances full-fledged retail business by grasping market trend
In the first half of 2020, leveraging the advanced local networking layout
and the consumption upgrade of the "Stay Home Economy", the Group actively
expanded its online community by centering on its physical stores and
expanding to the surrounding 3-5 km communities. At the same time, GOME made
good use of the comprehensive upgrade of "Store" channel on GOME APP to grow
the sales conversion rate by more than 150% year on year. Additionally, the
Group fully leveraged its resources and capabilities through the
comprehensive operation on supply chain, online communities, logistics and
services, creating a quality live streaming model with a feature of
"authority + knowledge + scenario". As of now, the Group already hosted over
1,000 live streaming events with various themes and scale, reached over 100
million people. In four of the super live streaming events, the Group's
sales revenue totalled RMB 2,500 million.
In the second half of this year, the Group and the authoritative media CCTV
News will jointly hold the live streaming events across 31 provinces
nationwide, showcasing the "New Store Mode" of GOME to thousands of
households, bringing consumers an upgraded living experience.
In addition, the Company makes great efforts on C2M reverse customization
and enhances the digital engagement of product selection, having created
chart-topping items under different brands. In the first half of this year,
the proportion of the customized and differentiated products increased from
37% to 45%. Together with the Company's advantage of integration solutions,
package sales, solution-based products and services, it will enable the
Company to maintain its gross profit margin at the high-end range of the
industry.
Strategically synergizes with partners to enjoy mutual benefits through
collaboration
The Group reached strategic cooperation agreements with JD.com and
Pinduoduo.com respectively in the first half of the year and already entered
into the in-depth cooperation phase. JD.com has provided non-home appliance
products to the Group, expanding Gome's SKUs to comprehensive product mix.
In the first half of the year, the sales revenue of the Group generated from
JD.com [1], Pinduoduo.com and other e-commerce platforms is expected to grow
more than 100 times year on year and the Group will strive to achieve RMB
20,000 million annual sales goal in the second half of this year. Along with
the in-depth strategic cooperation with these two companies, the Group will
further accelerate its implementation of "Home?Living" strategy.
Completed infrastructure construction and entered into the new development
stage
Since 2017, the Group adopted an unswerving strategy of developing into an
Internet-based enterprise. Leveraging the convergence of online and offline
channels, the Group built a comprehensive platform featuring retail,
services and smart connection. The Group steadily become an integrated
solution, service solution and supply chain provider under the "Home?Living"
strategy, meeting customers' diversified needs and their pursuit of a
wonderful life in the new era. The Group has successfully completed its
infrastructure construction, with the integration of online and offline
operations and the optimization of the store network. In addition, the
business model of "In-store", "In-home" and "In-online" has become
increasingly mature. Starting from this year, the Group enters a remarkable
development stage. GOME will seize the development trend of retail industry,
redefining the home community by meeting households' various material and
spirit requirements. Targeting on different age groups and stages of
families, the Group will create multi-function living communities to meet
their requirements of catering, shopping, culture, entertainment, social
intercourse, family gathering and fitness, by forming a new online and
offline integrated community services platform. GOME strives to become the
leading digital local community retailer and persists on creating a quality
and wonderful life for households in China.
File: GOME's Super Live Streaming Events Recorded New High Empowering and
Accelerating the Future Development of Local Digital Retail Industry [2]
12/08/2020 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com
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(END) Dow Jones Newswires
August 11, 2020 22:33 ET (02:33 GMT)
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