news

"the company will continue to focus on its existing main business and actively seek and capture investment opportunities. if there are suitable investment targets or directions, it will adhere to the concept of coordinated development to participate in or lead related new businesses and strictly fulfill its information disclosure obligations in accordance with relevant regulations."

at the online performance meeting for the first half of 2024 of yazhen home furnishing (sh603389, stock price 5.89 yuan, market value 1.55 billion yuan) held on the afternoon of september 5, gao wei, chairman of yazhen home furnishing, said this in response to a question from a reporter from the "daily economic news" about "whether the company has plans to expand its business scale in the future."

the interim report shows that yazhen home furnishing achieved revenue of 103 million yuan in the first half of the year, a year-on-year decrease of 2.98%; the net profit attributable to the parent was a loss of 28.0891 million yuan, a year-on-year increase of 40.36%, and the loss margin has narrowed for two consecutive years.

as a well-established home furnishing company established more than 30 years ago, yazhen home furnishing's revenue scale is at the tail end of the industry. from the perspective of net profit attributable to the parent company, since the first quarter of 2018, yazhen home furnishing has only achieved positive net profit attributable to the parent company in the first quarter of 2020 and the whole year of 2020, and the rest are in a loss state.

"due to the downgrade of furniture consumption and changes in consumption habits, the customer base of high-end furniture has decreased, the expansion of distribution channels has been slower than expected, and there has been no significant improvement in the scale and quality of channels, resulting in a slight decrease in operating income compared with the same period last year." yazhen home furnishing said in its interim report.

although the net profit is still negative, there are some positive signs from the performance in the first half of the year. the interim report shows that yazhen home furnishing achieved a net profit of 177,500 yuan attributable to the parent company in the second quarter of this year, a year-on-year increase of 100.88%. the loss of 28.09 million yuan in the first half of this year was also narrowed by more than 40% compared with the same period last year.

the interim report shows that yazhen home furnishing had inventory of 132 million yuan at the end of the reporting period, accounting for 20.61% of total assets.

gao wei said at the performance meeting: "in the second half of the year, the company will continue to strengthen inventory management, continue to optimize the marketability and replacement adjustment of store samples, scientifically organize production scheduling, manage the delivery cycle, and increase sales efforts for long-aged inventory. on the other hand, we will strictly implement order-based production on the manufacturing side to effectively control the increase in inventory, so as to ensure that inventory is controlled at a reasonable level."

from the perspective of yazhen home's business lines, it mainly includes high-end customization, cabinets, bed sets, tables and other products. among them, high-end customized products contributed 53.6701 million yuan in revenue in the first half of the year, accounting for 52.33% of the total revenue, a year-on-year increase of 19.86%.

the reporter found that the 44.84% comprehensive gross profit margin of yazhen home furnishing in the first half of the year is still at a relatively high level in the industry. for reference, in the first half of this year, the comprehensive gross profit margin of suofeiya was 35.76%, the comprehensive gross profit margin of oppein home furnishing was 32.57%, the comprehensive gross profit margin of gujia home furnishing was 33.03%, and the comprehensive gross profit margin of shangpin home furnishing was 30.58%.

it is worth noting that in the first half of the year, the revenue of yazhen home furnishing's direct sales stores and dealerships both declined, while the revenue from bulk business increased by 30.80%.

gao wei said: "the growth of revenue and gross profit of bulk business mainly comes from the shanghai jinqiao phase ii project, which was undertaken based on the perfect delivery of the shanghai jinqiao phase i project last year. based on the recognition of yazhen's product quality, the customer signed a jinqiao phase ii supply contract with our company this year with a total amount of more than 40 million yuan."

daily economic news