志邦家居20241112

Summary of Zhibang Home's Conference Call Industry Overview - The overall home furnishing industry is experiencing a downturn, with a notable slowdown in the integrated home business due to reduced urban integration projects and decreased contracts between franchisees and clients, as well as collaborations with local group companies. This trend is widespread across the country, indicating a general industry malaise [2][3]. Key Points and Arguments - Integrated Home Business Slowdown: The decline in the integrated home business is attributed to a decrease in urban projects and franchisee caution in risk management, leading to a reduced share of the company's business in this segment [2][3]. - Policy Impact on Channels: The "old-for-new" policy does not differentiate between integrated and retail channels, allowing both to benefit from government subsidies as long as they meet the criteria [2][4]. - Quarterly Performance Outlook: The quality of operations has declined in Q3 compared to H1, making it challenging to return to earlier levels in Q4, although a slight improvement is expected. Gross margin is anticipated to remain stable, with expense ratios consistent with previous quarters [2][5]. - Consumer Benefits from Subsidies: The "old-for-new" policy has minimal impact on terminal prices, with government subsidies enhancing consumer benefits and boosting sales enthusiasm [2][5]. - Sales Operations: The company operates a subsidiary in Guangzhou and utilizes an online platform for sales, similar to competitors like Oppein and Sophia, ensuring no operational barriers [2][6]. - Order Processing and Payment: When orders are processed by the brand, funds go directly to the company's account rather than the renovation company. This arrangement ensures customers receive maximum benefits from subsidies [2][7]. - Order Conversion Rates: The transition from terminal orders to factory orders is expected to be swift for customers with pre-existing designs, although some delays may occur due to necessary adjustments [2][9]. - Sales Volume and Customer Behavior: There has been a noticeable increase in order volume and average transaction value, driven by the government subsidy policy, encouraging customers to increase their budgets to qualify for higher subsidies [2][10]. - Dealer Participation in Subsidies: Most dealers are actively participating in the "old-for-new" program, considering various factors to maximize consumer benefits [2][11]. - Support for Dealers: The company provides unified online activities and guidance for dealers needing local policy support, facilitating their participation in subsidy programs [2][12]. - Pricing Strategy: The pricing strategy remains focused on package deals, allowing consumers to maximize their use of subsidies while keeping prices stable [2][13]. - Impact on Profit Margins: While package sales and subsidies have affected gross and net margins, the overall impact is minimal due to product structure adjustments [2][14]. - Market Trends: There is an increasing demand for home renovations, with a notable rise in customer interactions, suggesting that orders may extend into the next year [2][15]. - Partnerships with Real Estate Developers: Collaborations with major real estate developers remain stable, with no significant changes in the number of projects [2][16]. - Future Market Outlook: The macroeconomic policies, including government subsidies, are expected to positively influence consumer confidence and business prospects for the upcoming year [2][17]. Additional Important Insights - The company is actively adjusting its internal strategies to address the current market challenges and is optimistic about future growth opportunities [2][17].