In the second half of 2018, many industry insiders speculated that the data of home-listed companies in 2018 will not look good, especially the revenue growth will not reach expectations. It has also been mentioned that listed companies will increase their efforts to increase profit margins when they know that revenue growth is not as good as expected.

According to the 2018 performance announcement issued by the above 14 listed home companies, the net profit growth rate of 10 companies has dropped significantly. Three companies have lost money due to negative net profit, and the net profit growth rate of one company has dropped by more than 30%. It doesn't look optimistic. Does this mean that the 2018 annual report data of listed companies in the home industry is destined to be oozing?

As shown in the above table, the data of 4 companies including Yihua Life, Qumei Home, Sleemon, and A-Zenith Home are negative in 2018. According to their announcement of results, the reasons for the performance losses mainly include the following three aspects:

1. Macro factors: Chinese domestic economic environment is not as good as expected, and the export revenue is falling.

Yihua Life mentioned in the announcement that the year-on-year decline in export revenue is one of the core reasons for the company's 2018 performance reduction.

2. Industry factors: increased competition, furniture market fluctuations

In 2018, the home industry as a whole faced several major changes: changes in the trend of the real estate industry, the beginning of the development of hardcover houses, and the continued fierceness of customized furniture. These three changes have had a major impact on the supply chain of the home furnishing industry, and the change has led to changes in the home market. This is also the main reason why the overall sales revenue of some enterprise furniture markets has not reached expectations.

3. Cost factors: sales, management, advertising costs increase, raw materials and labor costs increase

The increase of domestic raw materials and labor costs is an important factor for the decline of gross profit margins of products. In 2018, many companies have chosen to accelerate the layout's steps, through increasing the investment in the domestic market, laying out engineering business, and buildding new channels, which is resulted in a rapid increase of operating costs such as store rent and labor costs, as well as sales and management costs. Finally, resulting in a negative impact on overall sales revenue and net profit growth.

However, in 2018, Oppein, Sogal, and Shangpin Home Collection 2018 are expected to increase revenue by 20%, and Oppein's revenue will break through 10 billion for the first time.

(Source: jjgle.com)