Der(SZ:002631)2022-12-08 08:10Group 1: Company Overview - Del International Home Co., Ltd. is engaged in the production and sale of flooring products [1] - The company held an investor relations activity on August 29, 2014, to discuss its operational performance [1] Group 2: New Product Launches - In April 2013, the company launched a formaldehyde-free flooring product, which features patented technology and higher profit margins compared to ordinary engineered wood flooring [2] - In November 2013, the company introduced the DBS series, a reinforced composite flooring product developed in collaboration with a German company, known for its design and structural stability [2] Group 3: Profit Margins - The gross profit margin for reinforced composite flooring increased to approximately 39% in the first half of the year, while the gross profit margin for engineered wood flooring rose to around 30% [2] - The increase in profit margins is attributed to the introduction of higher value-added products [2] Group 4: Sales Models - The company employs two main sales models: a distribution model targeting retail consumers through exclusive dealers, and a direct sales model aimed at real estate developers for renovation projects [2][3] - Collaborations have been established with major real estate developers such as Vanke, Poly, Evergrande, Wanda, and Financial Street [3] Group 5: Industry Trends - The wood flooring industry is experiencing brand differentiation, with consumers increasingly demanding quality, health, environmental sustainability, and aesthetic appeal [3] - The market in first- and second-tier cities is maturing, while third- and fourth-tier cities are seeing rapid sales growth due to urbanization and rising consumer purchasing power [3][4] Group 6: Future Development Plans - The company plans to strengthen its core flooring business and brand in the coming years, focusing on internal growth while also seeking external expansion through strategic asset integration [4] - The demand for flooring is expected to increase alongside the growth of the domestic renovation market [4]