- Net profit up 252.6% Key Momentum Stems from Management Focus, Omni Channel Strategy and Supply Chain
- Service Upgrade Achieved in 200 Cities to Provide 3 Deliveries/Day, Precise Delivery & Installation with Delivery
Hong Kong, 2014-5-19 — /EPR Retail News/ — GOME Electrical Appliances Holding Limited (HKSE: 493, “GOME” or “The Company”, together with its subsidiaries, “The Group”) today announced the Group’s unaudited results for the three months ended 31 March 2014 (“the reporting period”).
Initial Success under Management Focus, Omni Channel Strategy and Supply Chain Guided by the GOME “O2M Omni-Channel Retailer” strategy, for the first three months of 2014, the Group continued to focus on China’s home appliances market and recorded sales revenue of RMB 13.351 billion, up 8.2% year-on-year. Riding on its advantage in exclusive differentiated products, consolidated gross profit margin rose to 18.2%, up 0.6 of a percentage point year-on-year. Meanwhile, the cost-efficiency supply chain helped to lower the operating expenses ratio by 0.7 of a percentage points to 16.4%. For the first quarter of 2014, the Group recorded net profit of RMB 268 million, representing a significant increase of 252.6% year-on-year, with a net profit margin of 2.0%, up 1.4 percentage points year-on-year.
During the reporting period, the Group sustained profitability growth. Same store sales, sales revenue per square meter and other indicators all achieved year-on-year increases, including an increase in same store sales of 8.1% year-on-year.
Full Integration of Procurement, Logistics and Online IT Platforms On the e-commerce front, leveraging the full integration of supply chain value platforms that include strong procurement, logistics and IT, etc., the recognition and customer satisfaction of the Group’s online channel continued to improve with GMV and UV growing at 40% and 45% year-on-year, respectively. The consolidated gross profit margin of the e-commerce business rose to 7.2%, up 1.1 percentage points as compared to the end of last year. Moving forward, the Group will rapidly develop its NVNO client base and its cooperation with social network platforms, and will continue to provide a comprehensive customer experience.
Service Upgrade Achieved in 200 Cities to Provide “3 Deliveries/Day, Precise Delivery, and Installation with Delivery”
During the reporting period, riding on its low-cost high-efficiency supply chain advantages, with strengths in procurement, logistics and IT, the Group established three industry service benchmarks that include low prices, logistics and IT. The Group expects to realize the highest standard in logistics service in the industry – “3 Deliveries/Day; Precise Delivery; Installation with Delivery” – in 200 cities in China by the end of 2014 and to gradually expand its presence to more than 400 cities, building nationwide coverage with a personalized service system which will ultimately enhance the customer experience.
GOME’s service updates are supported by four infrastructure facilities – (1) a leading national distribution network with 428 logistics warehouses ; (2) a customer service system supported by comprehensive SAP information technology; (3) a comprehensive assessment system with ample data processing capabilities; (4) a 1,588-store network of distribution points to achieve seamless online and offline logistics, further enhancing the customer experience.
Mr. Wang Junzhou, CEO of GOME, said, “Our open supply chain is a solid foundation that supports the grand blueprint of ‘building another GOME’. The remarkable performance achieved in the first quarter of 2014 has strengthened the Group’s confidence in fully implementing its ‘O2M Omni-Channel Retailer’ strategy. Under the leadership of the Board and the management, we believe that GOME will seize opportunities in the mobile Internet era. GOME will set three benchmarks in the home appliance retail industry, provide customers with comprehensive services of the highest standards. We will gradually become China’s largest and most professional Omni-Channel Retailer, and will generate maximum
returns for shareholders and consumers.”
About GOME Electrical Appliances Holding Limited
GOME Electrical Appliances Holding Limited was listed on The Hong Kong Stock Exchange in July 2004 (HKSE: 00493). The GOME Group was founded in China in 1987 and is engaged in the electrical appliances and consumer electronics retail business in China. It is the largest electrical appliances and consumer electronics retail chain and the largest overall retail chain enterprise in China.
Please visit our website for more information: www.gome.com.hk.
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