Core Insights - The company, Oppein Home, reported a significant decline in revenue and net profit for 2024, marking the first time in 30 years that both metrics have decreased [2][6]. Financial Performance - In 2024, the company achieved revenue of 18.925 billion yuan, a year-on-year decrease of 16.93% [2][6]. - The net profit attributable to shareholders was 2.599 billion yuan, down 14.38% year-on-year [2][6]. - The basic earnings per share were 4.29 yuan, with a proposed cash dividend of 2.48 yuan per share (tax included) [2]. Business Segment Performance - The main business revenue accounted for 96.96% of total revenue, with significant declines in key product categories [3]. - Revenue from kitchen cabinets was 5.45 billion yuan, down 22.48% year-on-year [3][4]. - Revenue from wardrobes and matching furniture was 9.791 billion yuan, down 18.06% year-on-year [3][4]. - Revenue from bathroom products was 1.087 billion yuan, down 3.6% year-on-year [3][4]. - Revenue from wooden doors was 1.135 billion yuan, down 17.66% year-on-year [3][4]. Production and Sales Trends - Production and sales volumes for key products also saw double-digit declines [4]. - The production volume of kitchen cabinets was 687,200 sets, down 20.1% year-on-year, while sales volume was 686,300 sets, down 20.21% [4]. - The production volume of wardrobes and matching furniture was 2.8097 million sets, down 15.18%, with sales volume down 15.7% [4]. - The production volume of bathroom products was 681,900 sets, down 2.24%, with sales volume down 2.11% [4]. - The production volume of wooden doors was 965,600 units, down 15.41%, with sales volume down 15.69% [4]. International Sales Growth - Despite domestic challenges, the company reported international revenue of 320 million yuan, a year-on-year increase of 34.42% [5]. - The company has seen consistent growth in overseas sales, with international revenue of 218 million yuan in 2022 and 320 million yuan in 2023, reflecting growth rates of 6.47% and 46.54%, respectively [5]. Market Conditions and Challenges - The company attributed its performance decline to a deep adjustment and transformation challenge in the home furnishing industry, exacerbated by shrinking market demand and intensified competition [6]. - The upstream real estate sector is undergoing significant adjustments, with new housing starts and sales declining sharply [7]. - The overall furniture manufacturing industry showed only a slight revenue increase of 0.4% in 2024 [7]. Channel and Store Performance - Revenue from distribution channels fell to 14.042 billion yuan, down 20.10% year-on-year [8]. - The total number of stores decreased by 973, with 2,058 stores closed and 1,085 new stores opened [8]. - The company has made progress in developing its management and operational systems for the home furnishing business, with over half of its distributors now engaged in retail home furnishing operations [8]. Strategic Adjustments - The company is actively adjusting its business strategy to respond to changes in the consumption environment and industry ecology, launching more competitive products [9]. - For 2025, the company plans to focus on seven major transformations and accelerate the construction of an open smart manufacturing platform [9].