GOME Retail Releases Unaudited Interim Results, Parent Company Experiences Net Loss of 2.6B Yuan

(Source: Sohu)

GOME Retail on Monday released its unaudited interim results for the six-month period ended Jun. 30, 2020, showing its parent company experienced a loss of 2.623 billion yuan for the period while net loss was 380 million yuan in the same period last year.

The financial report revealed that GOME’s revenue in the first half of 2020 was 19.075 billion yuan, a decrease of 44.44% from 34.333 billion yuan in the same period last year.

GOME stated that COVID-19 was the major cause of the company’s distinctive decline in revenue and profit. In the first quarter of 2020 when the pandemic first hit China, its sales revenue fell by approximately 61.48% year-on-year. In the second quarter, however, it recovered rapidly through live streaming sales and the year-on-year decline narrowed significantly to about 26.32%.

Additionally, during the pandemic, GOME vigorously expanded its community as well as cultivated a dynamic digital retail environment on GOME App, which together boosted the GMV of GOME’s community and app to surge by around 70% compared to the same period last year.

The number of its community increased by more than 40% to over 200,000 and the group reached users increased by over 65% year-on-year to surpass 66 million.

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Due to strategic partnerships with Chinese e-commerce giants Pinduoduo and JD.com respectively in April and May this year, GOME’s GMV on these leading social commerce platforms soared by more than 100 times.