Group 1 - The stock price of Juran Smart Home closed at 2.88 yuan on July 29, 2025, down 0.06 yuan, a decrease of 2.04% from the previous trading day, with a trading volume of 1.76 million hands and a transaction amount of 506 million yuan [1] - Juran Smart Home operates in the commercial retail sector, focusing on home furnishing sales and smart home business, and has been promoting digital transformation through platforms like Dongwo and Juran Design Home [1] - The company's founder, Wang Linpeng, who served as the actual controller, chairman, and CEO, passed away at home on July 27, 2025, after previously being under investigation [1] Group 2 - On July 29, Juran Smart Home experienced a net outflow of main funds amounting to 27.54 million yuan [2]

Core Viewpoint - The sudden passing of Wang Linpeng, the actual controller, chairman, and CEO of Juran Zhijia, has left the company and the home furnishing industry in shock, raising concerns about the future direction of the company he built into a major player in the market [2][3][15]. Company Overview - Juran Zhijia announced the death of Wang Linpeng on July 28, 2025, after he had recently returned to work following the lifting of a detention measure [2][5]. - Wang Linpeng was recognized as a leading figure in the home furnishing industry, having transformed Juran Zhijia from a single store into a large commercial chain with over 400 stores across more than 300 cities in China [3][10]. Recent Developments - Wang Linpeng's death occurred just four days after the announcement of his return to work, following a three-month investigation period [5][22]. - The company experienced a significant drop in stock price, with shares hitting a limit down on the morning of July 28, before closing down nearly 7% [3][22]. Strategic Vision - Wang Linpeng had ambitious plans for Juran Zhijia, focusing on digital transformation and innovation, with a vision to lead the company into a new era of smart home solutions and international expansion [6][8][9]. - He had publicly expressed confidence in the company's future, emphasizing the importance of adapting to new market cycles and leveraging artificial intelligence [7][9]. Financial Performance - Juran Zhijia has faced declining profits over the past three years, with net profits dropping from approximately 23.03 billion yuan in 2021 to 7.69 billion yuan in 2024 [18]. - The company's rental and management business, a key revenue source, has also seen a decline in both revenue and market share [18][20]. Leadership Transition - Following Wang Linpeng's death, the board of directors has appointed Wang Ning to temporarily assume the roles of chairman and CEO, ensuring continuity in management [22]. - The company is at a critical juncture, needing to navigate ongoing challenges and complete its transformation strategy without its founding leader [22].

Core Insights - The passing of Wang Linpeng, the founder of Juran Zhijia, marks the end of an era for the company and the home furnishing industry in China [3][12] - Wang's leadership transformed Juran Zhijia from a struggling single store in Beijing to a major player in the home furnishing sector, emphasizing innovation and digital transformation [5][7] Company Transformation - Wang Linpeng took over Juran Zhijia in 1999 when it was on the brink of collapse, with only one store and less than 30,000 square meters of operating space [5] - He introduced the "advance compensation" policy to rebuild consumer trust and establish a solid market presence in Beijing [5][6] - Over the past two decades, the company has undergone a significant transformation, integrating online and offline operations and embracing digitalization [6][7] Digitalization and Innovation - In 2016, Juran Zhijia acquired Autodesk's 3D home design software, Homestyler, to enhance its online presence [6] - By 2023, the company had developed three major digital platforms: "Dongwo," "Juran Design Home," and "Juran Smart Home," facilitating a comprehensive digital transformation [6][7] - The "Juran Design Home" platform has attracted 18.5 million users, utilizing generative AI to streamline 3D modeling and design processes [8] Social Impact and Community Development - Wang Linpeng invested 250 million yuan to build a home living mall in his hometown, significantly boosting local employment and economic growth [9][10] - His initiatives in rural education and infrastructure development have transformed impoverished areas into thriving communities [10][11] - The "Hundred Counties, Hundred Malls" strategy aims to integrate urban and rural consumption, further enhancing community development [11] Governance and Future Outlook - Following Wang's passing, Juran Zhijia's board of directors has ensured a smooth transition, with Wang Ning appointed as the interim CEO [12] - The company maintains a robust governance structure, allowing for continued operational stability and strategic execution [12] - Juran Zhijia's resilience and commitment to innovation position it well for future growth in the evolving home furnishing market [12]

Core Viewpoint - The sudden death of Wang Linpeng, the actual controller and chairman of Juran Zhijia, has raised concerns about the company's future and the challenges it may face in the home furnishing industry [1][2]. Company Overview - Juran Zhijia's actual controller and CEO, Wang Linpeng, passed away on July 27, 2025, with the company stating that daily operations will be managed by the executive team and that business operations remain normal [1]. - Wang Linpeng was previously under investigation and had faced allegations of serious misconduct, which were not disclosed in detail [2]. Financial Performance - Juran Zhijia has experienced significant declines in net profit over the past three years, with figures of 16.48 billion yuan, 13 billion yuan, and 7.69 billion yuan for 2022, 2023, and 2024 respectively, reflecting year-on-year decreases of 28.45%, 21.10%, and 37.67% [8][9]. - The company's debt ratio has remained high, consistently around 60% over the past three years [8]. Market Position and Challenges - Juran Zhijia has expanded its operations to include 407 home furnishing stores, 4 shopping centers, and 173 supermarkets, achieving annual sales exceeding 120 billion yuan [8]. - The company is facing challenges due to a decline in consumer demand for physical stores amid a downturn in the real estate market and the rise of online shopping [8]. Strategic Initiatives - In response to declining performance, Juran Zhijia is focusing on stabilizing its core business through enhanced sales efforts, adjusting its chain development model, and improving cost management strategies [9]. - The company has initiated a digital transformation strategy, launching three digital platforms aimed at upgrading its home furnishing business, although the results of these initiatives have yet to be reflected in financial performance [9].

Group 1: General Information - The research object is Juran Home, belonging to the commercial department store industry. The reception time was June 12, 2025. The company's reception staff included Wang Ning, the director and executive president (acting as chairman and CEO), Zhu Chanfei, the vice president, and Wang Jianliang, the board secretary [16] - The institutions participating in the research were those online in Hubei Province's 2025 Investor Collective Reception Day event and the 2024 Annual Performance Briefing [2][19] Group 2: Core Views - In 2025, the economic policy focuses on expanding domestic demand and promoting consumption. The company leverages its digital transformation advantages and policies to drive continuous development [23] - The company adheres to the international strategy of "industrial collaboration and going global together" to expand overseas markets [26] - The company attaches great importance to market - value management, aiming to enhance profitability, use market - value management tools, and improve communication with investors [26] Group 3: Business Progress Home Furnishing Main Business - By the end of March, 20 branches such as Beijing North Fourth Ring Store and Tongzhou Store were upgraded to smart home experience centers. 15 integrated decoration experience centers were opened. Over a thousand themed marketing activities were carried out. A digital and intelligent investment - promotion management system was built. The intelligent property management system of stores like Taiyuan Spring Store was upgraded [24] Digital Business - Juran Designer, based on AI design tools, promoted the implementation of intelligent home improvement, intelligent shopping guides, intelligent marketing, and cross - border e - commerce. It established companies in North America and Singapore and participated in global exhibitions to expand overseas markets [24] Juran Smart Home - It accelerated chain development using its supply - chain advantages in smart 3C and smart cars. It developed a smart home general control system for new consumption scenarios. It explored overseas development models along with the overseas expansion of physical home - furnishing stores [25] Dongwo - It adhered to the positioning of an industrial service platform, promoted core tasks such as marketing coupon issuance, the "Three - Link" system, national subsidy activities, and the overseas digital platform, and used the promotion and upgrade of the omnichannel business management system to drive platform growth [26] Overseas Plan - The company continued to promote the overseas expansion of online platforms and physical stores. The Kuala Lumpur store in Malaysia was in preparation and planned to open in the third quarter [26]

Group 1: Business Strategy and Development - The company aims to transform into smart home experience centers, with 20 stores upgraded by the end of March 2025 [1] - The establishment of 15 integrated experience centers has been achieved by the end of March 2025 [1] - The company has launched thousands of themed marketing activities to embrace policy benefits [1] Group 2: Digital Transformation and Innovation - The company is developing a smart招商管理 system to enhance supply-demand matching through digitalization [1] - AI design tools are being utilized to promote smart home decoration and marketing, with overseas expansions in North America and Singapore [1] - The company is focusing on four new consumption scenarios: smart living, green low-carbon living, smart elderly care, and health management [1] Group 3: International Expansion - The company is preparing to open a store in Kuala Lumpur, Malaysia, in Q3 2025 as part of its international strategy [2] - The international strategy emphasizes "industry collaboration and collective overseas expansion" [2] Group 4: Financial Management and Shareholder Communication - The company is committed to enhancing profitability and shareholder value amidst stock price fluctuations due to macroeconomic factors [2] - Various market value management tools are being employed to improve shareholder returns [2] - The company is actively communicating with investors to enhance value transmission [2] Group 5: Audit and Compliance Issues - The company is addressing audit concerns related to the actual controller's legal issues, ensuring normal operations continue [2] - Measures are being taken to eliminate the impact of the audit report's reserved opinion [2] - The company is committed to complying with legal obligations regarding information disclosure [2]

Group 1: 2024 Performance Overview - In 2024, the company achieved a market sales (GMV) of 122.2 billion yuan, a year-on-year increase of 3.9% [1] - The operating revenue was 12.966 billion yuan, a year-on-year decrease of 4.04% [1] - The net profit attributable to shareholders was 769 million yuan, down 40.83% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 890 million yuan, a decrease of 27.62% year-on-year [1] Group 2: Business Transformation Highlights - The company rebranded from "居然之家" to "居然智家" on December 9, 2024, gaining recognition from various sectors [2] - The home furnishing main business showed resilience, ensuring overall health and stability [2] - The company opened 16 smart home experience centers and 4 integrated stores [3] Group 3: Digital Transformation Achievements - The global registered user count for "居然设计家" exceeded 18 million, a year-on-year increase of 21.9% [3] - The number of design cases surpassed 38.5 million, up 17.8% year-on-year [3] - The model count exceeded 12.44 million, a growth of 28.6% year-on-year [3] Group 4: Sales and Store Expansion - In 2024, 33 new stores were opened, achieving sales of over 6.33 billion yuan, a year-on-year increase of 43.4% [4] - The first integrated store opened in 2023 generated over 168 million yuan in sales [4] - The company has over 300 cooperative brands and 150 stores across 15 provinces [4] Group 5: International Expansion Efforts - The company opened two stores in Cambodia and Macau, achieving over 97% occupancy [5] - "居然设计家" launched 13 design tool languages and added over 140 payment channels for international users [5] - The number of overseas annual paid users increased by 80.2% [5] Group 6: Future Outlook and Strategies - The 2025 plan focuses on leveraging digital transformation advantages to stabilize and break through in the home furnishing main business [6][7] - The company aims to enhance sales through a comprehensive online and offline marketing system [7] - Plans to open at least 30 new stores and 25 new locations in 2025, including one overseas [22] Group 7: Measures to Address Profit Decline - The company is focusing on sales and recruitment to stabilize the home furnishing main business [19] - Adjustments in the chain development model to enhance franchise management quality [19] - Strengthening cash flow management and controlling capital expenditures [19] Group 8: Industry Outlook - Future industry growth is expected to be driven by multi-dimensional policy support and digital transformation [20] - The internationalization and collaboration within the supply chain will enhance the overall level and resilience of the home furnishing industry [20]

Investment Rating - The investment rating for the company is "Buy" [7][21]. Core Views - The company has shown impressive performance in its digital transformation and is awaiting the release of efficiencies from its main business adjustments [4]. - In 2024, the company achieved a revenue of 12.97 billion yuan, a year-on-year decrease of 4.04%, and a net profit attributable to shareholders of 770 million yuan, down 40.8% year-on-year [3]. Financial Performance Summary - The leasing and management business generated a revenue of 5.54 billion yuan, down 13.8% year-on-year, while the franchise management business earned 430 million yuan, down 15.0% year-on-year, primarily due to rental and management fee reductions to support merchants [5]. - The product sales business achieved a revenue of 6.3 billion yuan, an increase of 13.8% year-on-year, with the company's smart home segment generating over 6.33 billion yuan in sales, a growth of 43.4% year-on-year [6]. - The gross profit margin for 2024 was 27.35%, a decrease of 6.8 percentage points year-on-year, influenced by rental reductions [6]. - The company expects net profits for 2025-2027 to be 840 million yuan, 930 million yuan, and 1.03 billion yuan, respectively, with growth rates of 9.3%, 10.1%, and 11.1% [7]. Strategic Initiatives - The company is actively innovating its market strategies, including a new store cooperation model and a "one store, two systems" recruitment strategy, which has improved recruitment rates by 5.3% [5]. - The company has expanded its digital marketing services and international presence, opening two stores in Cambodia and Macau, achieving a recruitment rate of over 97% [6]. Valuation Metrics - The current stock price corresponds to a PE ratio of 24X for 2025 [7]. - The company maintains a debt-to-asset ratio of 57.07% and a net asset value per share of 3.28 yuan [7].

Core Insights - The company, Juran Smart Home, reported a revenue of 12.97 billion yuan for 2024, with a net profit of 890 million yuan after deducting non-recurring gains and losses, showcasing resilience and innovation in a complex market environment [1] - Despite slight revenue decline due to domestic economic fluctuations and cyclical impacts from the real estate market, the company's operational efficiency remains strong, with impressive performance in key metrics such as total asset return and net asset return [1] - Juran Smart Home has embarked on a digital transformation journey, leveraging AI technology across design, smart home, and intelligent home decoration sectors, establishing three major digital platforms: "Juran Design Home," "Juran Smart Home," and "Dongwo" [3] Business Strategy - The company continues to enhance the management of its chain home furnishing stores through a dual model of direct sales and franchising, operating 407 home furnishing stores across 30 provinces and cities in China and overseas by the end of 2024, solidifying its leading position in the home building materials sector [5] - Juran Smart Home is actively cultivating new growth drivers by developing shopping center formats as a second growth curve for physical commerce, successfully operating four shopping centers under the "Zhongshang World" brand in cities like Changchun and Wuhan, along with multiple modern department stores and supermarkets in key urban areas [5] - With ongoing digital transformation and expansion of new business territories, Juran Smart Home is expected to further unleash its potential in market competition, providing enhanced services and experiences for consumers while offering new ideas and directions for industry development [5]

Core Viewpoint - In 2024, the core business revenue of Juran Zhijia New Retail Group Co., Ltd. declined due to domestic economic fluctuations, adjustments in the real estate market, and intensified industry competition [2] Financial Performance - In the latest annual report, the company achieved an operating income of 12.966 billion yuan, a year-on-year decrease of 4.04%, and a net profit attributable to shareholders of 769 million yuan, down 40.83% year-on-year [2][4] - The net profit has declined for three consecutive years, with revenues of 12.981 billion yuan, 13.512 billion yuan, and 12.966 billion yuan from 2022 to 2024, and net profits of 1.721 billion yuan, 1.300 billion yuan, and 883 million yuan respectively [4] Business Segments - The leasing and franchise management business generated 5.972 billion yuan in revenue, a year-on-year decrease of 9.42%, accounting for 46.06% of total operating income, which was the main drag on performance [3][4] - The company has established 407 stores across 30 provinces and cities in China and overseas, including 83 direct-operated stores and 324 franchise stores [3] Market Conditions - The overall demand in the home furnishing and building materials market has shrunk due to economic fluctuations and reduced consumer purchasing power, exacerbated by cyclical downturns in the real estate market [3][4] - The home furnishing market has entered a phase of stock competition, leading to increased market pressure on Juran Zhijia's market share [3] Strategic Initiatives - To support merchants, the company reduced rent and management fees, which led to short-term revenue declines but aimed to maintain long-term partnerships [4] - The company introduced a "one store, two systems" recruitment strategy, with 65.4% of new recruitment areas adopting this model, effectively increasing merchant occupancy rates [4] - The company is accelerating its digital transformation, with its digital platform "Dongwo" achieving a GMV of 46.6 billion yuan, a year-on-year increase of 11.8% [5] Leadership and Governance Issues - The actual controller and CEO, Wang Linpeng, was detained and investigated, leading to a significant drop in stock price and market value [6][7] - Following the detention, the company's stock price fell to its limit down, resulting in a market value loss of over 2.5 billion yuan in one day [7] - The board announced that the executive president, Wang Ning, would act as chairman and CEO [9]