3 6 Ke·2025-06-09 02:07Core Viewpoint - The custom home furnishing industry in China is experiencing significant challenges, with major companies reporting substantial declines in revenue and profit, indicating a broader industry downturn amid external pressures and market uncertainties [1][2][3]. Revenue and Profit - In 2024, nine listed custom home furnishing companies reported an average revenue decline of 17.01%, with only Gold Medal Home experiencing a single-digit drop of 4.68%. The average net profit decline reached 234.29%, with only Sophia achieving positive growth [1][2][3]. - The top two companies, Oppein and Sophia, reported revenues of 189.25 billion yuan and 104.94 billion yuan, respectively, but both faced declining growth rates [3]. Channel Transformation - The revenue from distribution channels has decreased by nearly 20% on average, with some companies like PIANO and Shangpin Home experiencing declines close to 30%. However, direct sales channels have shown growth for some companies, particularly Topsolid, which reported an 87.9% increase [4][6]. - The integrated home model is emerging as a new growth engine, with Topsolid's integrated business growing by 39.51% [8]. Store Count and Efficiency - Six listed companies reduced their store counts, with Oppein closing 2058 stores while opening 1085, reflecting a shift from expanding channels to improving efficiency [11][13]. - The total employee count across nine companies decreased by 8999, indicating cost-cutting measures amid operational pressures [14][17]. Profitability Metrics - Oppein's gross margin increased by 1.76 percentage points to 35.91%, while Iwo Home maintained a leading gross margin of 46.32% [23][26]. - Net profit margins for Oppein and Sophia were 13.76% and 13.06%, respectively, while other profitable companies reported single-digit margins [26]. Cost Management - Sales expenses across nine companies decreased by an average of 11.33%, with some companies like PIANO and Shangpin Home reducing expenses by over 20% [27][30]. - R&D expenditures fell for most companies, with an average decline of 14.27%, potentially impacting long-term innovation [30][31]. Product Structure - Core product categories, such as custom wardrobes and cabinets, are under pressure, with Oppein's wardrobe and cabinet revenues declining by 18.06% and 22.48%, respectively [33][36]. - Newer product categories are showing growth, with companies like Sophia and Gold Medal Home seeing increases in their cabinet businesses despite declines in wardrobe sales [36]. Cash Flow and Receivables - Only Oppein and Iwo Home maintained positive cash flow growth, while others faced significant declines, with PIANO reporting negative cash flow [37][39]. - Accounts receivable increased for five companies, indicating intensified market competition and extended credit policies [39]. Industry Outlook - The 2024 financial data illustrates an industry undergoing restructuring, with leading companies leveraging scale and efficiency while smaller brands seek survival through transformation [40].