QM HOME(SH:603818)2025-04-29 13:13Financial Performance - The company's operating revenue for 2024 was approximately ¥3.55 billion, a decrease of 11.81% compared to ¥4.03 billion in 2023[25]. - The net profit attributable to shareholders was approximately -¥162.77 million, an improvement of 46.49% from -¥304.18 million in the previous year[25]. - The net cash flow from operating activities was approximately ¥585.98 million, down 24.20% from ¥773.09 million in 2023[25]. - Total assets at the end of 2024 were approximately ¥6.56 billion, a decrease of 5.75% from ¥6.96 billion at the end of 2023[25]. - The net assets attributable to shareholders increased by 10.43% to approximately ¥2.10 billion from ¥1.90 billion in 2023[25]. - Basic earnings per share decreased to -0.24 CNY, a 53.85% improvement compared to -0.52 CNY in the same period last year[26]. - Net profit attributable to shareholders increased by 46.49% year-on-year, primarily due to a decrease in labor and raw material costs[27]. - Operating cash flow decreased by 24.20% year-on-year, mainly due to a reduction in cash received from sales of goods and services[27]. - The net profit after deducting non-recurring gains and losses increased by 43.69% year-on-year, driven by the rise in net profit attributable to shareholders[27]. - The company reported a net profit of -79,428,144.23 CNY in the first quarter, with a gradual improvement in subsequent quarters[30]. Revenue and Sales - The company reported a decrease in revenue from non-core business activities, with a total of approximately ¥3.48 billion, down 12.08% from ¥3.96 billion in 2023[25]. - Revenue for the reporting period decreased by 11.81% year-on-year, attributed to a downturn in demand in the furniture industry[26]. - The total revenue from all sales channels decreased by 12.08% to ¥3,481,751,069.81, with a gross margin of 35.57%[97]. - The revenue from the domestic distribution model was CNY 554,509,049.09, with a gross margin of 25.74%, reflecting a year-over-year decrease of 23.99%[72]. - Custom furniture revenue was CNY 557,589,571.50, down 14.40% year-over-year, with a gross margin of 34.05%[71]. - The revenue from Ekornes products was CNY 2,531,123,970.34, with a gross margin of 37.98%, showing a year-over-year decrease of 9.65%[71]. Operational Efficiency - The company improved its operational efficiency, resulting in a decrease in office, management, and operational costs compared to 2023[43]. - The company's operating costs decreased by 16.51% to 2.302 billion RMB, primarily due to lower labor and raw material costs[68]. - The company has a production cycle of 12 days for panel finished products and 22-25 days for solid wood finished products, utilizing an ERP system for flexible production management[53]. - The company has a robust supply chain system, leveraging Ekornes' global resources to optimize raw material procurement and reduce costs[65]. Strategic Initiatives - The company has established a strategic partnership with major real estate developers to provide furniture solutions for furnished apartments, enhancing its market presence[56]. - The company aims to capture the growing demand in the second-hand housing market, which is expected to drive furniture sales through integrated supply chain services[101]. - The company plans to enhance its online brand presence through new media platforms, aiming to increase natural traffic and brand exposure[106]. - The company is committed to product innovation, with plans to launch new product lines to drive sales growth[106]. Environmental Commitment - The company has been recognized for its commitment to environmental standards, being the first in the industry to use water-based paint across all products[63]. - The company has implemented a green supply chain management system, ensuring compliance with higher environmental standards than national regulations[160]. - The company has successfully implemented water-based paint technology, significantly reducing volatile organic compound emissions[157]. - The company has established a dedicated energy and environmental management department to oversee green initiatives throughout the product lifecycle[160]. Governance and Compliance - The company adheres to strict governance practices, ensuring compliance with laws and regulations, and enhancing investor relations management[113]. - The board of directors consists of 10 members, including 4 independent directors, meeting legal requirements for governance structure[113]. - The company maintains a robust information disclosure system to enhance transparency and protect investor rights[114]. - There are no significant discrepancies between the company's governance practices and regulatory requirements, ensuring compliance and operational independence[114]. Shareholder and Financial Management - The company plans to repurchase shares through centralized bidding as approved in the first extraordinary general meeting of 2024[115]. - The company’s total remuneration for the chairman and general manager, Zhao Ruihai, was 82.40 million yuan during the reporting period[116]. - The company has a cash dividend policy that mandates at least 20% of the distributable profit to be distributed in cash, barring special circumstances[141]. - The company has committed to repay the non-operating funds, with expected repayment amounts and dates specified for each related party[175]. Risks and Challenges - The company faces risks from rising raw material costs, which significantly impact production costs due to the high proportion of direct materials in overall expenses[108]. - Labor costs are increasing due to tightening human resources, which may affect the company's operating performance and profitability if the trend continues[108]. - The furniture industry is experiencing intensified competition, with many companies accelerating capacity investment and store openings, leading to a potential decline in profitability for distributors[108]. - The company is exposed to tariff risks, particularly from the U.S. imposing high tariffs that could increase global trade costs and create barriers to business development[110].