In 2019, the whole household industry will not change significantly, especially for small and medium-sized enterprises. In addition, relevant studies have pointed out that with the emergence of signs of recovery in upstream real estate, there may be a performance inflection point in 2019, and the household industry may recover as a whole.
Recently, home furnishing Import pavilion Enterprises have successively handed over their 2018 "transcripts". According to statistics, as of the evening of March 5, 2019, a total of 25 listed companies in the home furnishing industry had released performance bulletins, of which, 80% of the revenue growth was less than 25%, and 9 companies had a net profit growth of less than 10%.
Relatively speaking, traditional household enterprises face a more severe test. The net profit of Yazhen Home, Qumei Home, Xilinmen and other enterprises in 2018 was negative; The growth rate of net profit of Jintanglang, Fuanna and other enterprises also narrowed to varying degrees compared with the same period last year.
The reasons for these household enterprises' profit setbacks are also different. "Snake Swallows Elephant" M&A is difficult to digest in the short term, and at the same time, it accelerates the opening of direct business stores. In 2018, Qumei Home Appliances suffered its first loss after listing. Coincidentally, Yazhen Home also made a profit loss due to accelerating the opening of direct business stores and other reasons. In addition, although the performance of some household enterprises in 2018 is expected to increase, they still have many hidden dangers. The profit growth of Golden Mantis is slowing down, construction problems occur frequently, and Del's future performance is also affected by the goodwill impairment of its subsidiaries.
Hu Zhongxin, secretary-general of China Home Building Materials and Decoration Association, told the reporter of China Business Daily that the profits of some home furnishing enterprises declined in 2018. On the one hand, it was affected by the overall environment, including the real estate environment; On the other hand, it is affected by the market environment of the whole China. In 2019, the whole household industry will not change significantly, especially for small and medium-sized enterprises. In addition, relevant studies have pointed out that, at present, with the emergence of signs of recovery in upstream real estate, 2019 may be a performance turning point, and the household industry may recover as a whole.
Tragedy of rapid expansion
In 2018, while the competition in the home furnishing industry intensified and the trend of the real estate industry changed, some home furnishing enterprises began to expand their market share to varying degrees. However, the blind expansion also foreshadowed the short-term decline of performance.
In 2018, Qumei Home suffered the first loss after its listing. Qumei Home Appliances' performance forecast released on January 30 shows that the company expects to realize a loss in 2018 compared with the same period of last year in terms of net profits attributable to shareholders of listed companies, and to realize a net profit attributable to shareholders of listed companies?? From 3 million yuan to - 56 million yuan, the net profit attributable to shareholders of the listed company after deducting non recurring profits and losses is from - 90 million yuan to - 60 million yuan.
In fact, Qumei's performance has kept rising since its listing in 2015.
In the opinion of insiders, the main reason for Qumei's losses is related to its overseas M&A case, which was called "snake swallows elephant" last year. In 2018, Qumei Home Furnishings completed the merger and acquisition of Ekornes ASA in Norway, with the cost related to the merger and acquisition of about 313 million to 330 million yuan. At the end of January this year, Qumei Home Appliances announced that up to now, the specific amount of income tax of Ekornes ASA and its subsidiaries could not be determined, which is expected to affect the net profit of 1 million to 27 million yuan.
When explaining the reasons for losses related to mergers and acquisitions in 2018, Qumei said to the reporter of China Business Daily: "Because the capital scale of this M&A case is about 4 billion yuan, and the financial costs and expenses we have paid for it are more than three billion yuan, so this has exceeded the size of our profits. The three billion yuan plus M&A fees do have a great impact on the company's profits, leading to losses in 2018. However, because the main acquisition of Qumei Home Appliances occurred in 2018, the payment behavior is mainly In 2018 and 2019. In 2019, the company will recover from the loss state in 2018. "
In fact, the reporter noticed that in addition to focusing on mergers and acquisitions, Qumei Home also vigorously expanded the number of direct stores. In 2018, the number of Qumei's direct stores in the Beijing market increased by 7 net, and by the end of 2018, the number of Beijing's direct stores had reached 21, leading to rapid growth in store rent, staff salaries and other operating costs. The company cooperated with Jingdong to build Qumei Jingdong Living Hall, which led to the closure of the flagship store in Beijing's North Fifth Ring Road for 135 days during the decoration period, and significantly reduced the revenue.
Similar to Qumei Home, Yazhen Home also suffered losses due to accelerating the opening of its direct business. On January 29, Yazhen Home Appliances announced that it is expected that the net profit attributable to shareholders of the listed company in 2018 will be a loss compared with the same period last year. Net profit attributable to shareholders of the listed company ranges from - 70 million yuan to?? The net profit attributable to shareholders of the listed company after deducting non recurring profits and losses is between - 80 million yuan and - 90 million yuan.
In fact, since its listing in 2016, its net profit has been in a downward trend. In 2016, the net profit attributable to the shareholders of the listed company was 70 million yuan, down 2.18% year on year; In 2017, the index further decreased to 61 million yuan, a year-on-year decrease of 19.16%.
As for the reasons for the performance loss, Yazhen Home Appliances said that in 2018, the company expanded the proportion of direct stores in order to lay out the direct market. The new stores are in the cultivation period and have not yet achieved profits. Selling expenses and administrative expenses increased significantly over the same period. In addition, the competition in the home furnishing industry has intensified, the trend change of the real estate industry, the development of hardbound houses and customized furniture have had a significant impact on the supply chain of the home furnishing industry, and the company's operating income has declined significantly. Due to insufficient capacity utilization and rising production costs, the company's inventory accounts for a large proportion, and the inventory falling price reserves have increased significantly compared with the amount withdrawn in the same period last year.
