The problem of “uneven performance” in the whole year is highlighted by the pressure of “uneven performance”.
Recently, Dehua Tb New Decoration Material Co.Ltd(002043) (full name ” Dehua Tb New Decoration Material Co.Ltd(002043) “) released the performance express for the fourth quarter and the whole year of 2021. The revenue increased by 21% and 46.98% respectively year-on-year. Thanks to the multi-channel operation and business layout, Dehua Tb New Decoration Material Co.Ltd(002043) realized the adverse rise under the rise of raw material prices and the shock of the real estate industry in 2021.
Dehua Tb New Decoration Material Co.Ltd(002043) securities affairs representative told Huaxia times, “we believe that 2021 is the year with the greatest pressure on the real estate chain, and the cost pressure of raw material price rise is also the largest, but the structure of the real estate chain will develop more reasonably in the future, and the supply chain of hardcover sector will also change greatly.”
net profit increased by more than 70%
Dehua Tb New Decoration Material Co.Ltd(002043) released the performance forecast for the whole year of 2021, which shows that Dehua Tb New Decoration Material Co.Ltd(002043) achieved an operating revenue of 9.503 billion yuan during the reporting period, with a year-on-year increase of 46.98%; The net profit attributable to shareholders of listed companies was 716 million yuan, an increase of 77.82% year-on-year.
And the financial situation is good. The total assets at the end of the year are 5.605 billion yuan, an increase of 325 million yuan or 6.16% over the end of the previous year; The owner’s equity attributable to shareholders of listed companies was 2.141 billion yuan, an increase of 280 million yuan or 15.08% over the end of the previous year.
As for the reasons for the performance growth, Dehua Tb New Decoration Material Co.Ltd(002043) securities affairs representative disclosed to the reporter of Huaxia times that the performance growth is mainly affected by the sinking of channel R & D, intensive distribution and external market expansion. Among them, the engineering business mainly relying on Yufeng Hantang will focus on cooperating with high-quality core customers in 2021, which will also help the steady growth of performance.
Specifically, in 2021, the income of Dehua Tb New Decoration Material Co.Ltd(002043) customized home business was about 2.687 billion yuan, with a year-on-year increase of 35.08%; Among them, the holding subsidiary Qingdao Yufeng Hantang Wood Industry Co., Ltd. (hereinafter referred to as “Yufeng Hantang”) had an operating revenue of about RMB 1.894 billion in 2021, an increase of 31.25% year-on-year.
According to public information, after 30 years of development, Dehua Tb New Decoration Material Co.Ltd(002043) has formed a complete industrial chain from planting and tending of forest resources, global procurement to production and sales of various boards, floors, wooden doors, wardrobe, cabinet and other diversified products. Among them, the baby free strategy acquired Yufeng Hantang in 2019, thus entering the acceleration stage of the engineering project of the real estate group.
diversified “business experience” worries
Judging from the reasons for the pre increase of performance in 2021, the diversified layout is undoubtedly the “business economy” of Dehua Tb New Decoration Material Co.Ltd(002043) rising against the trend, but on the other hand, the Dehua Tb New Decoration Material Co.Ltd(002043) capital side is also gradually tight.
It is reported that Dehua Tb New Decoration Material Co.Ltd(002043) acquired 70% of the equity of Qingdao Yufeng Hantang Wood Industry Co., Ltd. for 700 million yuan in September 2019. In the first half of 2021, the company acquired the remaining 25% equity of Yufeng Hantang, and the shareholding ratio rose to 95%. Through the acquisition of Yufeng Hantang, it became the head enterprise in the fine decoration channel of customized furniture.
However, after the acquisition of Yufeng Hantang, according to the performance in 2020, the accounts receivable and bills of Dehua Tb New Decoration Material Co.Ltd(002043) increased from 114 million yuan to 962 million yuan Dehua Tb New Decoration Material Co.Ltd(002043) securities affairs representative told the reporter of Huaxia times that the company’s accounts receivable and bills mainly come from Yufeng Hantang engineering business.
The annual report of the same period also shows that due to the merger of Yufeng Hantang, Dehua Tb New Decoration Material Co.Ltd(002043) the sales expenses, management expenses and financial expenses have increased to varying degrees. The column of financial expenses also mentions the long collection cycle of engineering business.
It is noteworthy that Dehua Tb New Decoration Material Co.Ltd(002043) also faces great debt pressure. Since 2020, Dehua Tb New Decoration Material Co.Ltd(002043) the asset liability ratio has increased from about 40% in 2019 to more than 55%, and the asset liability ratio in the first three quarters of 2021 was 59.53%, 64.11% and 63.04% respectively. By the third quarter of 2021, the current ratio and quick ratio of Dehua Tb New Decoration Material Co.Ltd(002043) had also decreased from 1.356 and 1.132 at the end of 2019 to 1.002 and 0.667.
Taking the engineering part of the above Dehua Tb New Decoration Material Co.Ltd(002043) business as an example, Yufeng Hantang not only brought revenue to Dehua Tb New Decoration Material Co.Ltd(002043) but also increased its liabilities. As for the contribution of Yufeng Hantang to the annual profit of Dehua Tb New Decoration Material Co.Ltd(002043) in 2021, as the complete annual report has not been disclosed yet, it is not known at present.
Then, in the face of the increasing capital pressure due to acquisition and the turbulent situation in the real estate industry, Dehua Tb New Decoration Material Co.Ltd(002043) has taken corresponding measures at present?
In response, Dehua Tb New Decoration Material Co.Ltd(002043) securities affairs representative said in reply to the interview letter of the reporter of Huaxia times, “We believe that 2021 is the year with the greatest pressure on the real estate chain, and the cost pressure of raw material price rise is also the biggest. However, the structure of the real estate chain will develop more reasonably in the future, the proportion of large real estate enterprises will increase, the real estate enterprises with poor debt ratio will gradually withdraw from the market, and the hardbound panel supply chain will also change greatly. With the demand for product upgrading in the later stage, the company is now finished Shande’s Woodwork supply chain (covering cabinets, closets, floors, wooden doors, etc.) has a very competitive advantage. The company will remain optimistic about the prospect of engineering business in the future. “
According to the representative of Dehua Tb New Decoration Material Co.Ltd(002043) securities affairs, due to the debt risk caused by the deleveraging of the real estate industry and the periodic decline in the rate of fine decoration, Dehua Tb New Decoration Material Co.Ltd(002043) b-end business is consolidating its position in the industry. At the same time, it is also expanding its product system (developing new categories such as flooring and wooden doors), upgrading its product grade and expanding new high-quality customers to achieve growth.
In addition, the reporter is also concerned that due to the impact of the real estate industry shock, the business planning of Qingdao Yufeng, which is responsible for Dehua Tb New Decoration Material Co.Ltd(002043) engineering business, will be adjusted, Dehua Tb New Decoration Material Co.Ltd(002043) said in an interview with investors recently, “At present, considering the risks of the whole real estate and the adjustment at this stage, the planning of the company’s tooling business in 2022 is a steady development.”
brand authorization mode, continuous product complaints
In fact, in the “business economics” of Dehua Tb New Decoration Material Co.Ltd(002043) diversified layout, the brand authorization business model also plays an important role.
The gross profit margin of decoration materials in 2020 is only 1.0023 5.2%, and the gross profit margin of decoration materials is only 1.0023 billion.
However, this proportion is still “at a high level” in 2021. According to the 2021 semi annual report, the proportion of Dehua Tb New Decoration Material Co.Ltd(002043) brand royalties revenue has increased to 4.03%, and the gross profit margin of the business has reached 99.09%, nine times higher than that of the main business “decorative materials”.
Lai Yang, member of the expert committee of the China Federation of Commerce, previously said in an interview with the media, “the way of labeling can enable enterprises to quickly collect profits. Based on the trust of consumers, enterprises will have good performance returns in the short term, but uncontrollable risks are also obvious.”
Indeed, when Dehua Tb New Decoration Material Co.Ltd(002043) enjoys the profits brought by the OEM business, the brand authorization model as the “mainstay” of performance is also full of doubts from consumers. When checking several public platforms, the reporter of Huaxia times found that there were many complaints about the quality of Dehua Tb New Decoration Material Co.Ltd(002043) products since the launch of the brand authorization model.
People.Cn Co.Ltd(603000) government message board shows that the earliest complaint about Dehua Tb New Decoration Material Co.Ltd(002043) is in 2020, and the content is “fake as true” of product quality. The content shows that when consumers order products and carry out the installation process several times, they find that the products are not the sectors signed by themselves, and the products are part true and part falseP align = “center” from People.Cn Co.Ltd(603000) government message board
On the black cat complaint platform, there are many complaints about the quality of Dehua Tb New Decoration Material Co.Ltd(002043) products, including shoddy, size deviation, false publicity, poor service quality, no acceptance of after-sales and other problems. Among them, a complaint Post said that the Dehua Tb New Decoration Material Co.Ltd(002043) whole house customization ordered during decoration was found to have Dehua Tb New Decoration Material Co.Ltd(002043) anti-counterfeiting codes on some cabinets during later identification, but some did not, and the cabinet doors of the whole house were not products of Dehua Tb New Decoration Material Co.Ltd(002043) brand. According to the complainant’s statement, the above customized sector has been purchased for two years, and there is always a pungent smellP align = “center” Dehua Tb New Decoration Material Co.Ltd(002043) product quality, service, after-sales and other complaints. Intercepted from black cat complaint platform
“In the long run, OEM will do more harm than good to the development of enterprises.” Lai Yang believes that the quality control of OEM products is difficult to be controlled by enterprises. When the effect is poor, OEM will have a fatal negative impact on brand reputation. Therefore, enterprises should carefully choose the OEM mode, not just see the current cash flow and profit.
In addition, Lawyer Wang Jiahong, executive director of Beijing jinv law firm, also reminded in an interview with the reporter of Huaxia times that if consumers encounter labeled products when purchasing goods, they can choose to complain to the China Consumer Association, or look at the contract agreement. If it is beneficial to themselves, they can also choose to sue.
