“The bulk is under great pressure, but it has not collapsed and is relatively weak; the retail lines are good. Although the pressure is great, the order receiving is good and the increment is good; the volume of foreign trade is small, but there is a future. These are the things we can make a difference.” At the 2021 performance presentation of Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) . SH) held on April 26, chairman Yao Liangsong combed all business lines.
When it comes to the external environment, Yao Liangsong has bluntly said for many times that “the mountain of pressure is great”. In his view, the situation of enterprises from 2020 to 2021 has been relatively difficult. This year, China’s shape is unprecedentedly complex. The repeated epidemic has made it difficult for many places to produce and circulate normally, resulting in the situation of “old diseases have not been solved and new diseases have been added”. As the downstream of real estate, the furniture industry itself is in the center of the storm. “We are in the same river with real estate, the upstream is frozen, and it will be cold below us.”
As we all know, the thunderstorm of real estate enterprises has triggered a series of large bad debt provision, and the hidden dangers buried in downstream links are far from eliminated. According to Wang Huan, the person in charge of finance of the company, Oppein Home Group Inc(603833) 2021, the balance of accounts receivable of bulk business was about 1.1 billion yuan, and the provision for impairment was about 100 million yuan.
For the current situation of bulk business, Yao Liangsong summarized as: “it’s not about collapse. It’s going down. It’s a difficult business line.” He further said that the bulk business of the industry must face at least periodic adjustment. Fortunately, this part of the business accounts for a small proportion. He hopes to take more business on the premise of stability this year.
According to the annual report of 2021, bulk business contributed about 18% of Oppein Home Group Inc(603833) revenue, with a volume of about 3.7 billion yuan. The financial Associated Press reporter learned that under the background of the storm of real estate enterprises, a small number of customers of state-owned enterprises and central enterprises have become the target of downstream manufacturers, and the possibility of further compression of the business profits has increased.
Compared with the bulk business, the retail business performed steadily, but it also faced the impact of weak consumption, and the downward pressure on gross profit was difficult to solve.
\u3000\u3000 “The cabinet line was pleasantly surprised and performed well; the wardrobe was also OK. All kinds of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) made innovations, and at least it was good to receive orders. However, due to the epidemic and weak consumption, orders were delayed and the scale of orders shrank; the bathroom line was small in size. The foundation was weak, so it was a little difficult under such a storm; foreign trade was a bright spot. Many overseas work stoppages were stopped last year, and work was started one after another this year, so foreign trade will gradually improve, but unfortunately this is not the case Part of the volume is relatively small and has great potential, but the short-term impact on the company as a whole is relatively small. ” Yao Liangsong commented on the splitting of each business line.
Oppein Home Group Inc(603833) performance maintained growth in 2021, but the gross profit of products was obviously under pressure, reaching a new low in recent five years. In this regard, Wang Huan said that in the face of heavy pressure, the company changed the pricing model last year, and some costs were digested internally. In addition, in order to help dealers, the settlement price was reduced to varying degrees, superimposed with a sharp rise in raw materials, resulting in a decline in gross profit.
In response to external concerns about the company’s gross profit this year, Wang Huan said that the overall pricing strategy is consistent with that of last year, and some costs are internally digested. The company hopes that the gross profit will remain relatively stable. If the fluctuation intensifies, it is expected to start adjustment in July.
