It is no longer a new thing for home furnishing enterprises to achieve better development through capital market financing.According to incomplete statistics, since the beginning of 2022, there have been five pan-home furnishing companies that have had their first IPO meeting, namely Senying Window Industry, Lianxiang Shares, Tianzhen Technology, Mousse Shares and Reed Intelligence.
Guangdong Huangpai Custom Home Furnishing Group Co., Ltd. (hereinafter referred to as Huangpai Home Furnishing) has completed the guidance and filing registration with the Guangdong Securities Regulatory Bureau as early as September 2020. It is now officially conducting its second IPO sprint and plans to list on the main board of the Shenzhen Stock Exchange. .
Huangpai Home Furnishing is a high-tech enterprise specializing in R&D, design, production and sales of customized system doors and windows.In this IPO, the company plans to publicly issue no more than 26.045 million shares, accounting for no less than 25% of the total share capital after the issuance. It plans to raise funds of 849 million yuan, which are mainly used for the expansion project of the intelligent production line of aluminum alloy windows and intelligent aluminum alloy doors and windows. Factory construction projects, R&D centers and informatization construction projects and supplementary working capital.
The researcher of "Investment Times" noted that during the reporting period, the net profit of Royal Home Furnishing's revenue was still good, but the gross profit rate showed a downward trend, and it was also faced with the risk of rising raw material prices.At the same time, the number of dealers of Royal Home Furnishings has continued to decrease.
A typical family business
prospectus shows that Huangpai Home is a typical family business. The founder, Zhu Fuqing, directly controls 9.6% of the shares of Huangpai, and indirectly controls Huangpai through three companies: Huangpai Investment, Zhuhai Bangwei and Zhuhai Zhenchuang. 61.63% of the shares of Pai Home Furnishings, controlling a total of 71.23% of the voting rights of the shares of Royal Pai Home Furnishings.
Zhu Mengsi, the daughter of Zhu Fuqing, directly controls 4.8% of the shares of Huangpai Home.At the same time, Zhu Fuqing served as the chairman of Huangpai Home Furnishings, and Zhu Mengsi served as the director and board secretary of Huangpai Home Furnishings, both of which were the joint actual controllers of Huangpai Home Furnishings.
In addition, Zhu Fuqing's wife Zeng Shuzhen directly controls 4.8% of the shares of Huangpai Home, Zhu Kaisong, Zhu Fuqing's son, directly controls 4.8% of the shares of Huangpai Home, Zhu Fuqing's younger brother Zhu Jianqing directly controls 0.77% of the shares of Huangpai Home, Zhu Fuqing's Cousin Zhou Zhijun directly controls 0.77% of the shares of Huangpai Home.Roughly aggregated, Zhu Fuqing and his family control more than 90% of the voting rights of Huangpai Home.
At the same time, Zhu Fuqing and his family also control the board of directors in their own hands.Among them, Zhu Fuqing is the chairman of the company, Zhu Mengsi is the secretary of the board of directors, Zhu Jianqing is the general manager, Zhou Zhijun is the deputy general manager, and Zhou Zhijun's cousin Zhou Pufeng is the director of the R&D center.If the IPO of Huangpai Home is successful, the founder Zhu Fuqing and his daughter Zhu Mengsi will benefit the most.
It is difficult to control the dealer team.
From the perspective of performance, the company's operating income in 2019, 2020 and 2021 (hereinafter referred to as the reporting period) was 787 million yuan, 804 million yuan and 1.025 billion yuan, respectively. The operating income in 2020 is higher than A year-on-year increase of 2.14%, and operating income in 2021 will increase by 27.51% over the same period of the previous year.Affected by the epidemic, the company's operating income growth will slow down in 2020.In the same period, its net profit was 46.05 million yuan, 114 million yuan, and 131 million yuan respectively, and the revenue and net profit increased simultaneously.
Among them, the revenue of window products is 448 million yuan, 518 million yuan and 706 million yuan respectively. The revenue in 2020 will increase by 15.67%, and in 2021, the product revenue will increase by 36.34%, and the revenue ratio will also increase from 58.95% in 2019 to 71.02% in 2021. %, contributing 70% of revenue, and is the company's main source of income.In the same period, the category products were 273 million yuan, 216 million yuan and 228 million yuan respectively, and the proportion of revenue dropped from 35.96% in 2019 to 22.97% in 2021.On the whole, the development momentum of the company's window products has been increasing, while the development momentum of door products has slowed down.
Huangpai Home Furnishing mainly relies on the distribution model for product marketing. Under the distribution mode, after the dealer obtains the order from the end customer, the order is placed through the ERP system; Huangpai Home Furnishing arranges technical personnel to provide the order information such as size, product series and color provided by the dealer. Carry out design review and design optimization. After confirmation by the dealer and the customer, part of the payment will be received in advance, and order splitting, material procurement, stocking and production will be arranged; generally, after the dealer has paid the full amount, the delivery will be arranged.
According to the prospectus, the revenue of the dealer model during the reporting period was 776 million yuan, 774 million yuan, and 994 million yuan respectively, accounting for more than 99% of the main business revenue, and there was an over-reliance on dealers to expand the marketing network.
In fact, during the reporting period, the number of dealers of Royal Home Furnishings also decreased year by year, from 856 at the beginning of the period to 831 at the end of the period.At the same time, the number of dealers fluctuates greatly, and the number of new and withdrawn dealers is around 150 each year.The analysis believes that the large number of dealers makes it more difficult for the company to manage the dealer team, and it is also difficult to control the service quality and after-sales guarantee of dealers.
On the black cat complaint platform, many consumers complained that the products of Huangpai Home Furnishing have quality problems such as size measurement errors, models that do not match the contract, and noise reduction effects that do not match the publicity.There are also consumers who complained that after paying the deposit at the dealer, the manufacturer said that the dealer owed a lot to the factory and did not receive the deposit. Consumers' doubts about their ability to effectively manage dealers.
In this regard, Huangpai Home Furnishing stated in the prospectus that if individual distributors fail to conduct product sales and services in accordance with the distribution contract, it will have a negative impact on the company's market image.In addition, if the improvement of the company's management and service level cannot keep up with the speed of the dealer's business development, it will also have an adverse impact on the company's brand image and business performance.
Risk of fluctuations in raw material prices During
the reporting period, the gross profit margin of the main business of Huangpai Home Furnishings showed a downward trend, which were 35.49%, 38.40% and 35.44% respectively.Among them, the gross profit margin of window products, which account for 70% of the operating income, dropped from 36.58% to 35%, and the gross profit margin of sun room products dropped sharply from 37.86% to 26.62%.
Analysis of the reasons behind the "Investment Times" researcher found that the proportion of the direct material cost of the Royal Family Home Furnishings to the main business cost was 75.11%, 74.46% and 76.90%, so the increase in the price of direct materials had a greater impact on the company's main business cost.
In fact, in 2021, the gross profit margin of Imperial Household window products will decrease by 3.32 percentage points, mainly due to the impact of product costs. Among them, the increase in the price of direct materials will reduce the gross profit margin by 5.59 percentage points. Gross profit margin dropped by 5.32 percentage points. In 2021, the increase in the cost of direct materials for sun room series products also reduced the gross profit margin of the product by 11.56 percentage points.
The raw materials required for the production of Huangpai Home Furnishing mainly refer to aluminum profiles, glass, hardware accessories, etc. The aluminum profiles are mainly affected by the price fluctuations of aluminum ingots, and the finished glass is mainly affected by the price fluctuations of the original glass sheets. The price of raw materials is greatly affected by factors such as domestic and foreign economic conditions, national macro-control policies and changes in market supply and demand.In the next few years, there will still be certain uncertainties in the price of aluminum ingots and the price of original glass sheets. If Huangpai Home Furnishings cannot adjust the sales prices of products in a timely manner, it may have a negative impact on the production and operation of the company.
