Not only apparel companies are troubled by inventory, but under the influence of real estate regulation, the home furnishing industry downstream of real estate is also having a hard time, and high inventory has also become their profit killer.
The annual report shows that, except for the inventory of Del Home (002631.SZ), which is slightly lower than that of the same period, other listed companies that have issued annual reports all maintain higher inventories. The year-on-year increase was 53.77%.
"First Financial Daily" reporter recently visited the Shanghai home store and found that despite the merchants claiming the "biggest" discount in history, but the store is still sparsely populated, and the past four or May has been the peak season for furniture purchases.
A well-known brand furniture store sales staff, said the past month, within the store only sold two sets of furniture. Another Shanghai local brand sales manager estimated to reporters that the brand's activities plus discounts from the store are equivalent to a 30% discount. This kind of effort has been almost non-existent in the past three years.
The annual report data of several listed companies are more evidence of the high inventory phenomenon in the home furnishing industry.
Del Home's annual report released today shows that the company's operating profit and net profit attributable to shareholders of listed companies fell 12.12% and 11.52% year-on-year, respectively. Although as of the end of last year, the inventory of Del Home Furnishings decreased slightly compared with the beginning of the year, but it was as high as 53.4485 million yuan.
The annual report released by Guangdong flooring listed company Yihua Wood recently showed that as of the end of last year, its inventory amounted to 1.244 billion yuan, an increase of 53.77% year-on-year. According to the annual report, the reason for the increase in inventories was that the company purchased 185 million yuan worth of valuable furniture and woodcarving artworks for exhibition and marketing in order to promote the development of the domestic market and the construction of the marketing network. Corresponding to the increase of consumable forestry assets of 117 million yuan, and the increase in production and stocking of subsidiary companies with the gradual release of production capacity and other factors.
During the same period, Yihua Wood achieved a floor sales revenue of 231.905 million yuan, a decrease of 32.19% from the previous period, and total floor sales of 13,385.487 cubic meters, a decrease of 18.14% from the previous period.
In addition to the impact of the downturn in real estate, the European and American debt crisis has also caused the decline in furniture exports. Customs data show that from January to July 2011, Guangdong furniture export growth rate was significantly lower than the same period last year. In July, Guangdong exported US $ 380 million of furniture to the United States, a year-on-year decrease of 15.4%.
Yihua Wood said frankly that the company's products are mainly exported. During the reporting period, the sales revenue from export products accounted for nearly 88% of the company's sales revenue. In the short term, the situation of "outside strong and weak inside" is still difficult to change.
High inventory also brought a series of chain reactions to furniture companies.
A person from a Guangdong office furniture production plant told reporters that most of the inventory is custom-made office furniture, making it difficult to conduct secondary sales. Furniture piled up in the warehouse is inherently airtight. Once it encounters "back to the sky", it is wet and musty, even if it is only left for a month or two, it will affect the material of the furniture.
In addition to natural losses, large inventories require large sites, and large sites require more rents, so the cost rises; high inventory requires more people to manage, and labor costs also go up; in addition, high inventory will cause more product damage, Crushing and deterioration or style elimination, the cost has risen again.
Xu Guanrong, secretary general of the Shanghai Furniture Industry Association, told reporters that when the market is weak, "fixing production by sales" is a better way for companies to reduce inventory. Unlike Guangdong's large-scale furniture production model, most enterprises in Shanghai now adopt customized furniture to reduce inventory risk.
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