On August 31, Gome retail released its financial report for the first half of 2020, showing that its sales revenue was about 19.075 billion yuan, down 44.44% year on year. In the same period of last year, the loss attributable to the parent company was about RMB 280 million.
For Gome, the first half of 2020 is an important period, with many left-handed and right-hand Jingdong to create a new pattern of retail era. In addition, the parole of Huang Guangyu, a major shareholder, is also good for Gome and its development strategy has shifted from conservative to expanding.
Sales revenue fell 61.48% in the first quarter and 26.32% in the second quarter
According to the report on Chinas home appliance market in the first half of 2020 released by the China Institute of electronic information industry development, the retail sales of Chinas home appliance market in the first half of this year was 369 billion yuan, down 14.13% from the same period last year. From the product point of view, in the first half of this year, the vast majority of household electrical appliances showed different degrees of market shrinkage, and suffered from both volume and volume decline.
As a home appliance retailer, Gome is also affected. In the first quarter of the severe epidemic, Gomes sales revenue fell by 61.48% year-on-year, while in the second quarter, with the help of online broadcast and other means, the same year-on-year decline in sales revenue narrowed to about 26.32%. Among them, the total sales volume of four super live broadcasting events was about 2.5 billion yuan.
Specifically, the revenue from offline sales of electrical appliances and consumer electronics was 18.842 billion yuan, compared with 32.739 billion yuan in the same period of last year; the revenue of online sales of electrical appliances and consumer electronic products was 233 million yuan, which was 1.594 billion yuan in the same period of last year.
During the reporting period, the cost of sales was about 17.362 billion yuan, accounting for 91.02% of the total sales revenue, and 85.45% in the same period last year. The gross profit was about 1.713 billion yuan, which was 4.997 billion yuan in the same period last year, and the gross profit rate was about 8.98%, with a year-on-year decrease of 5.57 percentage points. The comprehensive gross margin is about 11.65%.
The main reason for the decrease of gross profit margin is that during the epidemic period, the sales of communication, computer and digital products with low gross profit rate accounted for a large proportion, and the sales proportion of these categories increased from 27.34% in the same period of last year to 41.56% in the reporting period. However, the sales share of the high gross profit margin of the household electricity has declined.
The total transaction volume Gmv of group community + Gome app increased by about 70% year-on-year. The number of communities increased by more than 40% to more than 200000, and the number of touch users increased by more than 65% year-on-year to more than 66 million.
During the reporting period, 1360 stores were used as comparable stores, with sales revenue of about 16.201 billion yuan, a year-on-year decrease of 38.58%. In addition, the proportion of revenue from County stores has increased to 8.23% of the total revenue, up from 5.49% in the same period last year, while the proportion of revenue from new businesses (including cabinet power integration, home decoration and home furnishings) has increased to 7.02% of the total revenue, up from 5.20% in the same period last year.
In the first half of the year, we obtained comprehensive credit of 6.5 billion, issued bonds of over 200 million and convertible bonds of US $300 million
On June 24, Beijing No.1 Intermediate Peoples court ruled to release Huang Guangyu, the largest shareholder of Gome, on parole. The probation period of parole is from the date of parole to February 16, 2021. Gome also started a series of capital operation and strategic adjustment in the first half of the year. According to the financial report, cash and cash equivalents at the end of the reporting period were about 11.437 billion yuan.
On March 10, Gome retail announced that the company had fully paid the principal of US $466 million and related interest of US $11.65 million due in 2020, totaling US $478 million.
In April this year, it invested $200 million in convertible bonds in Gome. On the evening of May 28, Gome issued $100 million convertible bonds to Jingdong, and the two sides will carry out in-depth cooperation in joint procurement, joint marketing and logistics services.
Gome also continues to issue bonds. Financial reports show that in April this year, the group renewed and resold the corporate bonds issued in 2016 in China, with a total principal of 86.5 million yuan and a coupon rate of 7.6% per year. In June, domestic bonds with a total principal of 200 million yuan were issued with a coupon rate of 7.00% per year.
In addition, from the end of April to the beginning of June, Gome successively reached strategic cooperation with three financial institutions, namely, Hana Bank (China) Co., Ltd., Guangfa Kunming Branch and Dalian Bank Beijing Branch, and obtained 1.5 billion, 3 billion and 2 billion comprehensive credit lines respectively, totaling 6.5 billion.
The cooperation between Gome, pinduoduo and Jingdong has continued. At the beginning of July, Jingdongs self operated department stores began to be put on Gome app, and will be promoted to consumers through community and live broadcast. Gome introduced that since the store channel was launched in Gome app in early July, the sales revenue generated through the channel has accounted for more than 50% of the overall sales revenue.
Gome also continues to speed up the degree of Internet. On August 13, it was reported that Xiang Hailong, the former senior vice president of Baidu, joined Gome. In this regard, Gome said that according to the companys business development, Gome established an online platform company to further accelerate the companys Internet process and realize the companys digital transformation and upgrading. Xiang Hailong is the CEO of online platform company.
According to Gomes internal letter, in order to further accelerate the process of the companys Internet, make better use of product technology tools, and realize the companys digital transformation and upgrading, the company has decided to establish Gome online platform company through product and technology empowerment, enabling business modules such as electrical appliances, home decoration, fresh food and hot pot ingredients, so as to improve business efficiency.
Shell finance reporter Chen Weicheng, editor Wang Jinyu proofread Liu Baoqing
Source: Wang Fengzhi, editor in charge of Beijing News_ NT2541