SPZP(SZ:300616) Bei Jing Shang Bao·2025-07-02 14:52Core Viewpoint - Guangzhou Shangpin Home Furnishing Co., Ltd. (Shangpin Home) is experiencing a decline in performance despite a slight increase in stock price, with a net profit loss of 38.86 million yuan in Q1 2024, indicating challenges in its business transformation efforts [1][3]. Financial Performance - In Q1 2024, Shangpin Home reported a revenue of 741 million yuan, a year-on-year decline of 4.52%, and a net profit loss of 38.86 million yuan, although the loss has narrowed compared to previous periods [3]. - From 2021 to 2024, Shangpin Home's revenue figures were 7.31 billion yuan, 5.31 billion yuan, 4.90 billion yuan, and 3.79 billion yuan, with corresponding growth rates of 12.22%, -27.30%, -7.80%, and -22.67% [3]. Management Changes - The resignation of Vice President Hu Yi and the appointment of Zhang Zhifang and Li Quan as new vice presidents are seen as attempts to address the company's operational challenges [3][4]. - The management reshuffle reflects a response to both external market pressures and internal structural risks [4]. Product Performance - Revenue from Shangpin Home's custom furniture products, supporting furniture, and other services has declined, with specific revenue figures for 2024 showing a drop of 22.48% for custom furniture and 31.34% for supporting furniture [4]. - The company's main revenue source remains custom home products, which accounted for approximately 71.88% of total revenue in 2024 [6]. Industry Competition - The custom home furnishing industry is facing intensified competition as traditional furniture manufacturers and other home-related businesses enter the market [1][7]. - The rapid growth of the integrated home furnishing market from 368.6 billion yuan in 2018 to 868.6 billion yuan in 2021 has attracted many competitors, leading to homogenization in the market [5][7]. Strategic Transformation - Shangpin Home is attempting to pivot towards integrated home furnishing services, having established its self-operated brand "Christmas Bird" in 2017, but this segment has not significantly contributed to overall revenue [6]. - The integrated business's revenue has decreased from 789 million yuan in 2021 to 253 million yuan in 2024, indicating challenges in this strategic shift [6]. Technological Innovation - In response to ongoing losses, Shangpin Home is investing in AI technology to enhance operational efficiency and reduce costs, aiming to transform its production and service processes [7][8]. - The company is developing an AI design factory to streamline design services and improve cost management, which is crucial for reversing its financial downturn [8].