GOME Retail In 1H 2022 consolidated gross profit margin significantly increased to 19.8%, Cash flows from operating activities improved significantly and positively – QNT Press Release

Focused on the core business and creating a new profit model
Technology empowered business transformation

HONG KONG, Sept 1, 2022 – (ACN Newswire) – GOME Retail Holdings Limited (HKEX Code: 493. HK, “GOME” or “the Company”, and together with its subsidiaries, “the Group”) announced its unaudited interim results during the six months ended 30 June 2022 (the “Reporting Period”).

The consolidated gross profit margin and operating cash flow improved significantly, and construction of the full retail ecological sharing platform has been completed

In 1H 2022, GOME continues to promote the implementation of the “Home . Living” Strategy, and based on the development philosophy from the platform perspective, users’ perspective, and technology perspective, the Company created a “full retail ecosystem sharing platform” by establishing and integrating its six business platforms, namely “online platform, offline platform, supply chain platform, logistics platform, big data & cloud platform and sharing and joint development platform”. The Group further promoted the grid-based model of “Home Living and Home Services” by implementing the core business strategies of entertainment-oriented marketing, low price, quality service, and technology, striving to meet the all-around consumption and service needs of family users.

In the first half of the year, there are various lockdown and control measures in most regions affected by the recurring outbreaks of the pandemic in China, the momentum of economic recovery slowed down, and offline entities were disrupted significantly. And online business was also hit hard since the outbreak of the pandemic because of the disruption to the logistics service. However, with the gradual introduction of the national stimulus package, such as the stimulus to automobile consumption in June, or in July 13 departments including the Ministry of Commerce issued the “Several Measures on Promoting Green and Smart Appliance Consumption” to comprehensively promote the domestic green and smart household appliance consumption, would greatly benefit the company’s business recovery and significant growth in future. In 1H of 2022, the sales revenue of the Group was approximately RMB12 ,109 million, and the consolidated gross profit margin was approximately 19.81%, increasing substant ially by 5.56 percentage points as compared to the corresponding period last year. The Group’s operating expenses were approximately RMB4,839 million, which decreased by 3.10% as compared to the corresponding period last year. The Group’s loss attributable to the owners of the parent was approximately RMB2,966 million. During the Reporting Period, the Group’s cash flows generated from operating activities had significant improvement over the corresponding period last year, achieving a positive net inflow of RMB55 million.

Focusing on the main business with a vertical model, reduce the burden in the second half year

The field of household appliances is the traditional strength of GOME Retail, the Group’s strategic focus in the coming period will focus on the main business with the vertical model. GOME will focus on retail sales of household appliances and consumer electronic products, based on the Company’s years of experience in the retail field, relying on a large number of offline stores throughout the country and its existing supply chain and after-sales and other infrastructure, to form five main profit models: exhibition (offline boutique experience), marketing (online and offline omni-channel self-management + sharing supply chain), integrated solutions for home electronics products, extension products for wide scope home appliances and value-added services (delivery, after-sales, extended warranty, paid membership operation, etc.), in which the separation of exhibition and sales and adding the new offline display service charging model would benefit our revenue structure optimized. The eff ect of the…

Full story available on Benzinga.com

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