Industry Overview - In 2024, the new residential property sales area in China decreased by 12.9% year-on-year, totaling 97.385 million square meters, while sales revenue fell by 17.1% to 967.5 billion yuan [1] - The sales area and revenue for residential properties dropped by 14.1% and 17.6% respectively compared to 2023, indicating a continued decline in the new housing market [1] - The building materials and home furnishing market also faced challenges, with sales revenue from large-scale building materials and home furnishing markets declining by 3.9% to 1.49 trillion yuan, marking the third consecutive year of negative growth [1] Company Performance - For 2024, the company reported total revenue of 1.43 billion yuan, a slight decrease of 6.2% year-on-year, with net profit attributable to shareholders at 690 million yuan, down 14.4% from 2023 [2] - The company maintained positive cash flow from operating activities, with a net inflow of 816 million yuan, the only listed home furnishing company in A-shares to achieve growth [2] - The company's revenue is heavily concentrated in the Chengdu area, contributing 97.8% of total revenue, with minimal contributions from other regions [2] Business Model and Revenue Breakdown - The company's primary business model includes self-operated and franchised stores, with self-owned properties being the core operational model [3] - Revenue from market leasing and services decreased by 4.5% to 1.247 billion yuan, accounting for approximately 87.2% of total revenue [4] - The average revenue per unit area for 2024 was approximately 997.51 yuan per square meter, a decrease of 16.0% from 2023 [4] Cost and Profitability - The company's operating costs increased by 3.1% year-on-year to 468 million yuan, with a significant portion attributed to market leasing and service operations [9] - The gross profit margin for 2024 decreased by nearly 3 percentage points to 67.2%, reflecting external adverse factors [9] - The company successfully reduced sales expenses by 32.7% through cost control measures, resulting in a sales expense ratio of 0.4% [12] Strategic Initiatives - The company is focusing on online transformation, achieving online payment totals of 320 million yuan and attracting over 20,000 customers through digital channels [14] - The company has shifted the focus of its Tianfu project from a lifestyle commercial complex to a "live streaming port," aiming to create an ecosystem for home furnishing live streaming [15] - The company maintains a low level of interest-bearing debt, with a debt ratio of only 1.4%, indicating a healthy financial structure [16]