① Oupai Home's revenue in 2023 increased slightly by 1.35%, the lowest growth rate in nearly ten years, and net profit to mother increased by 12.92%; ② According to Hurun's Global Rich List, Yao Liangsong ranked 262 in 2023, with a wealth of 59 billion yuan; this year, its ranking dropped to 758, with a wealth of 31.5 billion yuan.
Financial Services Association, April 24 (Reporter Ren Chaoyu) Oupai Home (603833.SH)'s revenue in 2023 increased only slightly by 1.35%, to its lowest level in nearly ten years. The company recently had an “eventful period”. On the one hand, many dealers ran away after the start of 2024, causing consumer complaints. On the other hand, the departure of the company's director and marketing general Liu Shunping in March also attracted great attention from the industry.
According to financial data, Oupai Home achieved operating income of 22.782 billion yuan in 2023, up 1.35% year on year; net profit to mother was 3,036 billion yuan, up 12.92% year on year, of which net profit after deduction increased 5.91% year on year.
As the real estate market continues to be sluggish, Oppai's performance has been adversely affected. The company said in its annual report that in 2023, the external market environment is complex and changing; the real estate market is still at a low level of operation; under the combined use of the above two, the home building materials industry is intensifying, the home furnishing industry is rapidly rising, the share of the retail home furnishing market shrinks significantly, and the ecology of the home furnishing industry is changing rapidly. The external environment cannot be changed. For the company, there is no choice but to follow the trend or become smoke and dust.
According to the annual report, Oupai Home Furnishing will focus on large households in 2024. According to a relevant report by the Shell Research Institute, in the era of cost-effective consumption, it is difficult for consumers to impulsively spend on simple “promotions” and “price cuts,” and the number of expert and research consumers is increasing.
Since this year, two major events of Oupai Home Furnishing have received market attention. One is that director Liu Shunping officially announced his departure on March 23. According to public reports, during his tenure, Liu Shunping served as the marketing director of kitchen appliances, general manager of cabinet marketing, general manager of group marketing, and vice president of group marketing, and launched the Oupai Home Furnishing Model in 2018. In May of last year, Liu Shunping became the general manager of Oupai Marketing Division 1.
Regarding Liu Shunping's departure, the Financial Services Association reporter called the company as an investor on March 25 to inquire. Ou Pai staff said that Liu Shunping's departure was due to personal reasons. In 2023, the company should have experienced the largest organizational restructuring, shifting from a single category to a multi-category and city-centered business model transformation.
As to whether the organizational structure will be adjusted in the future, the staff said that major structural adjustments should not be possible from now on; partial optimization may be carried out in inappropriate places.
According to a Financial Services Association reporter from people familiar with the matter, Liu Shunping's departure may be related to falling behind in internal horse racing between divisions after the organizational structure was adjusted.
Second, Oupai Home Furnishing has recently been caught up in a turmoil where dealers have run away. According to media reports, an authorized Oupai Home Furnishing store in Daqing City, Heilongjiang, was revealed to have “run away” after the 2024 Spring Festival, involving many consumers. In April, Shandong Yangxin was also revealed that the dealer “ran away”. Many consumers in Liaoning also reported that after an Oupai dealer in Haicheng placed an order for “whole house customization,” the dealer's owner declared bankruptcy, involving millions of yuan in renovation expenses. The European side, on the other hand, said that the incident where the dealer ran away was reported to the public security authorities.
It is worth noting that in the secondary market, Oupai Home Furnishing's stock price continues to decline. Since this year, the stock price has fallen by 19.87%.
(Oupai Home PE situation source: Choice)
Along with this, Yao Liangsong, founder and chairman of Oupai Home Furnishing, “shrunk” in value. According to Hurun's Global Rich List, Yao Liangsong ranked 262 in 2023, with a wealth of 59 billion yuan. By 2024, its ranking had dropped to 758, with a wealth of 31.5 billion yuan.