Main Business Maintains Profit Growth
E-Commerce GMV Records Significant Growth
HONG KONG, March 1, 2018 /PRNewswire/ -- GOME Retail Holdings Limited ("GOME" or "the Company", HKEX stock code: 493) today announced the preview of the Company's results for the financial year ended 31 December 2017 ("the reporting period"). The preliminary preview shows that the earnings of main business of GOME continues to grow in 2017 as the net profit is expected to improve year-on-year if excluding non-operating factors. Both total gross merchandise volume ("GMV") and e-commerce GMV recorded decent growth, indicating the "Home · Living" transformation strategy is well on the right track to yield excellent operating results.
The Company launched its "Home · Living" strategy in 2017. This new blueprint follows the Company's plans to evolve into a one-stop home solution provider, going beyond the traditional home appliance retailer field. Guiding by the strategy, the business performance of GOME has kept growing and achieved outstanding results in 2017. Based on the preliminary review of the latest management accounts of the Company, GOME's GMV for both online and offline businesses is expected to grow by more than 20% compared to the corresponding period last year. GMV from the marketplace of the e-commerce is expected to grow by over 100%. The consolidated gross profit margin is expected to exceed 18%, which places the Company at the forefront of the industry. The Group now has over 200 million members and is speeding up its expansion on the services regime and expanding into 4th and 5th tier cities to enhance its new competitive advantage.
Based on applicable accounting standards, GOME impaired the goodwill for some businesses and recorded impairment provision for the long-term assets in 2017. By excluding non-operating items such as financial cost inflation after an increase in debts, goodwill impairment and long term asset impairment, the net profit of the Company is expected to improve compared with the corresponding period last year.
GOME says the Company will continue to execute its "Home · Living" strategy, strengthen the "shared retail", the innovative business model of GOME, and push toward the goal of serving more than 100 million families in China. GOME believes its strategic transformation will drive a more efficient, innovative and quality growth of its business performance.
The data mentioned above is only based on the preliminary review by the Company's management and is being reviewed. The information is subject to finalization by the auditor and the audit committee of the Company. Shareholders and potential investors are advised to read carefully the Company's 2017 annual results announcement, which is expected to be published by the end of March 2018.
About GOME Retail Holdings Limited
GOME Retail Holdings Limited has been listed on The Hong Kong Stock Exchange since July 2004 (HKEX: 00493). The GOME Group was founded in China in 1987 and is engaged in the retail business of electrical appliances and consumer electronics in China. It is the largest electrical appliances and consumer electronics retail chain enterprise in China.
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