Sofia Huahe door Industry Co., Ltd. is another limited liability company registered and established in Tiefeng district, Qiqihar city, Heilongjiang province on 2017-04-14. The registered address is located at 155, Tiefeng district Unicom Avenue, Qiqihar city, Heilongjiang province.
The unified social credit code/registration number of Sofia Huahe door Industry Co., Ltd. is 91230200MA19C007X6. The enterprise legal person Fu Qijiang is currently in the opening State.
The business scope of sophia huahe door industry co., ltd. is: door, window, wallboard, sunshine room, furniture manufacturing, sales and import and export trade, collection of water charges, electricity charges, building materials wholesale, retail, house rental. Within the scope of the province, the registered capital of the current enterprise is general.
The following are some reports about the current situation of Sophia Huahe:
Sophia's internal and external troubles under Prosperity spent 1.5 billion yuan to expand production and fall into the "loss Gate"
Hidden dangers under rapid development
Speaking of Sofia, the development in recent years is just like taking a rocket. Public information shows that in 2008, Sofia's operating income was 0.2 billion yuan and its net profit was only 0.023 billion yuan. However, its financial report in 2017 shows that its operating income has reached 6.162 billion yuan and its net profit has reached 0.906 billion yuan. What is more striking is that its gross profit margin has risen to 38.06. The rapid development speed makes the industry sit up and take notice of it.
However, the seemingly considerable development speed is difficult to cover up the objective reality of its slowing profitability. Its 2016 annual report shows that the growth rates of operating income and net profit in that year were 41.75% and 44.74% respectively. In 2017, the growth rates of these two data were 36.02 percent and 36.37 percent respectively. According to the financial report for the first quarter of 2018, its operating income and net profit increased by 30.32% and 33.48% year on year respectively, which was significantly different from 48.3% and 46.75% in the first quarter of 2017.
There are various signs that Sophia seems to have touched the "ceiling" of profits ". However, the slowdown in the growth of these two indicators inevitably reminds people of the cabinet business that continues to lose money.
According to Public Information, Sofia established the Cabinet Division in November, 2013 and signed a letter of intent for cooperation with French Cabinet service provider SALM S.A.S in December. In June of the following year, the two jointly established "Simi Cabinet Co., Ltd." (hereinafter referred to as "Simi cabinet").
Although there is a background of foreign-funded enterprises and Sophia's strong brand endorsement, the operating condition of Simi cabinet continues to maintain a state of loss.
According to the report of China Business Network, the net profit of Simi Cabinet Co., Ltd. is a loss. Although its operating income reached nearly 0.6 billion yuan in 2017, it has not yet achieved profits.
The report also pointed out that the loss situation in the first two years after the establishment of si mi cabinet was not obvious, but in 2016, its loss amount was as high as 0.1 billion yuan, and the loss amount in 2017 narrowed to 37.7 million yuan.
Sophia himself was the one who caused the loss of Si mi cabinet. According to its financial report, in the second half of 2017, due to the wrong price strategy, the growth rate began to slow down in the third quarter, and Sofia brand barely completed the full-year task, however, simi cabinets were more affected by the price adjustment policy and did not complete the sales tasks set at the beginning of that year.
It could have been 0.8 billion in 2017, but because the company wrongly judged the trend of raw material price increase at the beginning of the year, the ex-factory price was raised, which affected the achievement of the annual target.
Yuan Jianming, secretary-general of Chongqing kitchen cabinet Association, said that some large enterprises can still rely on their own inventory dilution to increase costs, but enterprises with small size must be hit a lot and can only transfer the rising pressure to consumers.
Insiders said that the price of wool came from sheep is a factor that consumers attach great importance to, especially for enterprises like Simi cabinets, which have not been established for a long time and have not formed a strong enough brand influence, raising prices rashly may cause consumers to be discouraged.
Another major reason for the loss of Simi cabinets is the large investment in the early stage. Sophia once said that at present, the loss of cabinet business is mainly due to the large investment in equipment and systems in the early stage. Si mi cabinet factory was built according to the capacity of 1.5 billion yuan, and the current capacity utilization rate is relatively low.
In fact, the low capacity utilization rate of Simi cabinets is a common problem in the industry. Experts said that at present, the cabinet market has excess capacity and is generally faced with problems of low capacity utilization rate, low profit margin and high debt ratio.
Due to the difficulty of entering the cabinet market, the number of enterprises engaged in cabinet production is increasing. For a while, the market supply exceeds the demand. As a result, overcapacity, prices and competition continue.
Public information shows that sophia is mainly engaged in the design, production and sales of customized furniture and supporting household products in the whole house, and "customization" is the core of its main business model.
It can be seen that the cabinet business with continuous losses is only a part of sophia's "big home strategy", and its customized wooden door business is also an important part of this strategy.
According to public information, in april, 2017, sofia and huahe group co., ltd. invested in the establishment of sofia huahe door industry co., ltd., accounting for 51% of the shares, using double brands (mi LANNA MILANA, huahe) operation mode: operate custom wooden door business. According to media reports, like Simi cabinet, the net profit of Sophia Huahe door Industry Co., Ltd. is also a loss.
Interestingly, although Sophia's cabinet and wooden door business both lost money, its operating expenses were rising sharply. Its financial report shows that in 2016, management expenses and sales expenses increased by 47.03 percent and 25.86 percent year-on-year. These two expenses also increased by 49.8 percent and 33.82 percent respectively in 2017. In the past quarter of 2018, the growth rates of the two also reached 49.59 percent and 29.88 percent.
2017
In addition to internal factors, Sophia will also face fierce external competition, which can be described as internal and external troubles and many challenges.
According to the report of hexun.com, custom home furnishing enterprises such as oupai, shangpin home collection, piano, gold medal, I le, zhibang, and wayes customization were listed one after another in 2017. As can be seen from its quarterly reports, the performance of customized home furnishing enterprises is also popular one after another. This will be a huge challenge for Sophia, a veteran company.
Lin Tao, president of Guangdong wardrobe Industry Association, said: "I think there are still three annuities and two years of silver in the custom household industry, and the rest is broken copper and rotten iron. Five years later, the industry will conduct a deep reshuffle, mainly competing for capital, scale and service system."
For sofia, its service system is not dominant. According to china website, the supply cycle of first-line brands such as sofia often takes 45 days or even 60 days, because customized products need to be retested after the mud carpentry, the overall decoration cycle may be delayed for about one month, which greatly affects the user experience of the overall decoration of users.
Therefore, if sophia wants to take the lead in the whole house customization industry, she must first solve the industry pain points with long service cycles.
And with the emergence of automation machinery and equipment, the whole house customization industry will also face a new round of changes, and the optimization of production efficiency is crucial. Therefore, the weakness of its low capacity utilization rate is also a big problem.
Sophia's official website shows that its next strategic goal is to make customized wardrobes and other supporting furniture refined, bigger and stronger, and constantly deepen the company's "whole house customization" big home strategy, become a leading "big home solution provider".
In 2018, the loss was 50 million, and the price was 58.9 million again. Sofia increased the size of the wooden door to chase dreams.
Cabinet expansion is used as wardrobe, wardrobe expansion is used as cabinet, cabinet and wardrobe enterprises add wooden doors and floors to make the whole house customized. It is already a trend for home furnishing enterprises to expand home furnishing products.
In April, 2017, it established a joint venture with Huahe Group to establish a Door Company. Sophia, a listed custom household enterprise, promoted the time from cabinet and wardrobe customization to wooden door, which was a "late episode". After two years of running-in and testing, sophia issued an announcement yesterday, adding code to the joint venture door company and planning to spend 58.9 million yuan to buy 19% of the equity of the joint venture door company held by huahe group. After this increase, Sophia owns 70% of the equity of the joint venture Door Company, while the other Huahe Group's equity is reduced from 49% to 30%.
At that time, when Sophia and Huahe group jointly established a Door Company, Sophia took out 0.265 billion yuan of real gold and silver at a time, while Huahe group took Investment in kind. This time Sophia took out another 58.9 million, a total of more than 3 billion capital investment, Sofia will also become the majority of equity. This wooden door enterprise located in Qiqihar, Heilongjiang province in Northeast China has become the northernmost factory in Sofia.
This wooden door enterprise named sophia huahe door industry co., ltd., according to the announcement released by sophia, in 2018, the company's revenue was 0.161 billion yuan and its net loss was 50.51 million yuan; The revenue in the first may of this year was 60.51 million yuan, continue to lose 20.99 million yuan. That is to say, this wooden door enterprise invested by Sophia is in poor condition after more than two years of operation.
Sofia's 2018 annual report disclosed that Sophia Huahe's door industry will have a capacity of 450000 wooden doors after delivery. In 2018, Sophia Huahe door industry produced 69045 thousand, which was far from the expected production capacity. However, the corresponding revenue of 450000 wooden doors exceeds 1 billion yuan, while the actual revenue is 0.161 billion yuan. In 2018, Sofia's annual revenue reached 7.3 billion, and the proportion of wooden doors in revenue was only 2.16 percent.
Jiangshanoupai, a listed wooden door enterprise, had a annual revenue of more than 1.2 billion yuan in 2018, and the output of solid wood composite door reached 375,966 sets. Therefore, no matter in terms of revenue or quantity, Sophia still has a lot of gaps in wooden door products compared with wooden door head enterprises. However, under the pressure of the reality that the revenue of the customized home leader oupai home has exceeded 10 billion in 2018, Sophia's pressure can be imagined.
On the motivation of increasing capital of sophia huahe door industry, sophia announced that it has entered the "big home" strategy in an all-round way, and entering the customized door and window category is to practice the "big home" strategy, an important measure to expand product categories aims at "further improving the management and industrial layout of customized wooden doors".
In the seven jobs put forward by sofia in 2019, "continue to practice the big home strategy, actively do a good job in supporting the whole house, and integrate cabinets and wooden door products into more sofia stores, realizing one-stop and convenient purchase by consumers is listed as an important option. In 2019, Sofia also plans to open 100 new wooden door stores in 2019 on the basis of more than 160 original Huahe brand custom wooden door stores.
However, in the case of only 60 million revenue in the first May of this year, Sophia obviously couldn't sit still and began to further support. As for why we continue to increase the capital of this enterprise, which is located in a corner of the Northeast, in the view of Jane Elephant Home, one is that there are abundant timber resources in the local area, and the other is that there has been a huge investment in the early stage, so it cannot be wasted.
In addition to the heavy gold of nearly 60 million, Sophia also made a great determination to do this wooden door enterprise well this time. It disclosed in the announcement that after the equity transfer was completed, Sophia would reorganize the board of directors of this door company. Among the five directors, 4 were appointed by Sophia, while the restructured board of supervisors, all board of supervisors are appointed by Sophia. Under the background of making money and making people, it remains to be seen whether Sophia's wooden door plate can improve.
Facing the severe situation, I give Sophia some immature suggestions!
According to the latest data, oupai household achieved a revenue of 2.203 billion yuan in the first quarter, an increase of 15.57 percent year-on-year; Shangpin Home collection The Report of the first quarter of 2019 showed that revenue was 1.274 billion yuan, an increase of 15.66 percent year-on-year; sofia's first quarter report in 2019 showed that revenue was 1.185 billion yuan, down year-on-year.
In terms of revenue and year-on-year growth in the first quarter, the European faction ranked first, while Shangpin Home collection had surpassed Sofia.
Moreover, Sofia's revenue decreased by year-on-year, which should be the first time in Sofia's development history and custom home development history. In addition, this is the first single-digit growth (3.69%) of sofia's net profit since its listing in 2011. In the past 7 years (2011-2017), sofia's net profit has maintained a growth rate of more than 28%, among them, the year-on-year increase in 2016 was as high as 45%.
I gave Sophia some immature suggestions about strategy and tactics.
Sophia is the first stock of custom wardrobe in China, and also one of the benchmark and flags of the whole house's custom home. The severe situation Sophia faces has received high attention from the whole industry.
Based on the current development situation of the industry and the horizontal comparison between european and shangpin home collection, I have several immature suggestions for sofia:
First, about strategic lag
Throughout the development of the whole house custom home industry, the strategic layout speed is related to the active and passive development. As the leader of china's custom wardrobe, sophia is quite successful in the strategic layout of the custom wardrobe, therefore, he first completed the magnificent transformation of the capital market, and therefore, he had been the second place in the whole house's customized home before this year. However, during the strategic leap from single-item custom wardrobe to large home to whole house customization, sophia's speed was obviously lagging behind. He only made cabinets in 2014 and wooden doors in 2017, compared with oupai entering the wardrobe in 2005, his movement was too slow. In 2014, oupai wardrobe had become the second pillar industry after cabinets. When he was making wooden doors, shangpin Home collection has already started to complete the package.
When it comes to package, as far as the development trend of the industry is concerned, no one can ignore the strategic entrance of package, especially the listed head enterprises. Unfortunately, sophia is on this strategic entrance layout, once again, it lagged behind. At the end of the year before shangpin home collection and the first half of last year, the european faction had already completed the package with great fanfare. Last year, the sales of the package in shangpin home collection had reached nearly 0.2 billion, and the european faction had received orders in the package 0.35 billion.
II. Lack of initiative in tactics
Sofia's marketing tactics are mainly manifested in its insufficient marketing initiative.
The first quarter report showed that the main reason for the decrease of sofia's operating income was that the national promotion activities in the fourth quarter of 2018 had little effect and the order receiving was not ideal, resulting in insufficient factory orders in the first quarter of 2019. Sophia said that Sofia began to try new promotion policies in 2019, and orders received by front-end stores recovered from March to April, but due to the lag of factory orders, this good transfer is not reflected in the shipment amount in the first quarter.
In terms of the layout of traditional channels, Sophia is very powerful. Its channel scale is second only to that of the European faction. After years of hard work, Sophia has abundant commercial resources. Then, why is there such a large decline in performance? Is it just because the promotion has little effect?
I don't think so.
I think Sophia has a problem in marketing tactics.
In the first quarter, as the main product category of Sofia, Sofia's customized wardrobe business revenue decreased by year-on-year.
As far as Sofia's wardrobe is concerned, its 799 packages (which is also the first package launched in the industry) have once been full of wind and water and gained rich achievements. However, sophia wardrobe relies too heavily on the path of 799 packages and has never been innovative. After the introduction of 15800 packages and 518 packages on shangpin home collection, the advantages of 799 packages disappeared.
Third, it is not too late to mend the prison
Of course, in the first quarter, sophia system also had bright spots. One of the most important results in sofia's financial report in 2018 was that si mi cabinet, which had suffered losses for four consecutive years, finally turned losses into profits in this year and entered the profit turning point. In the report of the first quarter of 2019, the custom income of Simi custom cabinet and Sophia Huahe wooden door increased, the revenue of Simi custom cabinet increased by 12.98% compared with the previous year, and the revenue of Sophia Huahe wooden door increased by 36.10% compared with the previous year.
Especially for Simi cabinets, the year-on-year growth of 12.98 percent is not easy, because the average growth rate of the entire custom cabinets last year was 9 percent, and the growth rate of European cabinets last year was 7.67 percent.
"There is no eternal winner, only eternal competition."
Just in this way, share with Sophia.
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