Core Insights - The real estate market is entering a post-cycle phase, with new housing sales area and sales revenue declining by 12.9% and 17.1% respectively in 2024 compared to 2023 [1] - The overall net profit of nine major custom home companies decreased by nearly 30% to 4.048 billion yuan in 2024, influenced by a sluggish real estate sector and increased competition in the existing market [1] Group 1: Company Performance - In the first quarter of 2024, only three companies (Zhihong Home, Pinao, and Top Solid) reported a decline in net profit, with Pinao and Top Solid experiencing significant losses of 122.4% and 339.1% respectively [2] - Euopei Home led with a net profit of 2.18 billion yuan, a 43% increase year-on-year, due to its centralized procurement advantages [2] - In the second quarter, nearly 90% of companies reported negative net profit growth, with an average decline of 59% [2] - In the fourth quarter, Iole Home's net profit surged nearly 13 times to 40.92 million yuan, while Sophia's net profit increased by 38.8% to 463 million yuan [3] Group 2: Financial Metrics - The average net profit margin for the nine custom home companies in 2024 was approximately -1.4%, a significant drop from 7.8% in 2023 [9] - Top companies like Euopei Home and Sophia had net profit margins of 13.8% and 13.7% respectively, showing slight increases from the previous year [9] - Smaller brands like Top Solid and Pinao had net profit margins of -17.1% and -42.7%, compared to 1.4% and 6.3% in 2023 [9] Group 3: Cost Management - Iole Home had the highest sales expense ratio at 24.8%, an increase of 3 percentage points from 2023, while Sophia managed to reduce its sales expense ratio by 10.2% [5] - Top Solid had the highest management expense ratio at 10.4%, up 1.8% year-on-year, while Zhihong Home's management expenses decreased significantly due to reduced share-based payment costs [6] - R&D expense ratios for Gold Medal Home and Euopei Home were 6.1% and 5.8% respectively, with both companies investing in digital transformation and product innovation [7]