While Gome Electrical Appliances Holding expects last year’s group profit to decline, it predicts its eCommerce business will more than double.
Also, the second-half profit is expected to be significantly higher than that of the first half, and the net profit ratio is also expected to be better in the second half, says the appliance retailer.
Based on a preliminary review of accounts of the group – including the data of acquired appliance retailer Artway Development and its subsidiaries from April 1 – the total gross merchandise volume (GMV) for both online and offline is expected to grow by more than 30 per cent, with the GMV of eCommerce business expected to more than double.
Sales revenue is expected to grow by more than 18 per cent.
As some of the group’s major stores were being renovated in the first half of the year, sales revenue from the comparable stores is expected to decrease by 9 to 9.5 per cent, while the fourth-quarter decrease is expected to narrow.
As a result of the continuing high-speed growth of the eCommerce business and the transformation of stores in the first-tier market, the group’s consolidated gross profit margin is expected to lower to about 16 per cent.
Expenses are expected to increase, and the profit attributable to the owners of the parent company is expected to fall by 65 to 75 per cent.
The group expects its results will improve upon completion of its “Omni-Channel, New Scenario, Strong Linkage” strategic transformation.