Since being as an A-share listed in 2012, Sleemon, as a leading domestic mattress company, has maintained a good growth. But according to the latest annual report, Sleemon's net profit was negative for the first time in 2018.
Although in 2018, the company achieved the operating revenue of RMB4.211 billion, a year-on-year growth of 32.11%. The net profit attributable to listed shareholders was RMB -438 million, a year-on-year decrease of 254.54%. After deducting non-recurring profits and losses, the net profit was RMB -469 million, down by 283.16% year on year.
In 2015, Sleemon acquired Zhejiang Greentown Culture & Media Co., Ltd. with RMB720 million in the public criticism and stepped into the film and TV industry. Thus, the original business has been expanded. And the main business sector has been changed into three major sectors: home furniture, hotel furniture and film and TV industry.
From the year 2015 to 2017, Sleemon's business income was RMB 1.69 billion, RMB 2.22 billion and RMB 3.19 billion respectively. Among them, the revenue of film and TV business is respectively RMB 209 million, RMB 283 million and RMB 365 million, which brought Sleemon considerable revenue, with a gross interest rate of more than 50%.
However, in 2018, the situation changed dramatically. Among the revenue of RMB 4.211 billion, the home furniture revenue was RMB 3.911 billion, an increase of 47.75% year on year. Hotel furniture revenue was RMB 209 million, an increase of 41.71% year on year. The revenue of the film and TV industry was RMB 73.2496 million, a decrease of 79.96% year on year.
Sleemon's annual report of 2018 shows that: "Due to the influence of market adjustment and policy changes, the operating performance has not reached expectations, so it is necessary to make provision for impairment of existing goodwill. Finally, this resulted in a large loss in the current reporting period."