Q3 收入承压，渠道变革延续。Q3 收入同降29%，公司重聚焦定制+配套业务，其中以“随心选”为代表的全屋定制套餐模式是重要抓手。渠道层面上，公司大力发展自营加盟模式，推出“9 城500 店”的青年创业筑梦计划，加盟商与直营大店通过共享物流、安装和售后服务，降低加盟商门槛和风险，实现共赢发展，H1 期间新开加盟店180 家，但在外部经营环境及公司优化门店的影响下，期间净减少14 家至1991 家；直营门店转加盟进程延续，Q3 加盟渠道收入降幅稍窄，H1 期间门店数净减少11 家至35 家。Description of the event
The company achieved revenue of 2.732 billion yuan in the first three quarters of 2024, a decrease of 22%, and a loss of 0.114/0.134 billion yuan in net profit to mother and 0.134 billion yuan respectively; of these, the 2024Q3 corresponding revenue was 1.022 billion yuan, a decrease of 29%, and net profit/net profit net profit lost 0.008/0.015 billion yuan respectively.
Incident comments
Q3 Revenue is under pressure, and channel changes continue. Q3 revenue also fell 29%, and the company focused on customization+supporting business. Among them, the whole-house customized package model represented by “choose as you like” was an important starting point. At the channel level, the company vigorously developed the self-operated franchise model and launched the “500 Stores in 9 Cities” youth entrepreneurship and dream building plan. Franchisees and major direct stores reduced the threshold and risk for franchisees and achieved win-win development. 180 new franchisees were opened during the H1 period, but under the influence of the external business environment and the company's optimization of stores, the net decrease of 14 to 1991 during the period; the direct sales of direct stores continued. The Q3 franchise channel revenue drop was slightly narrow, and the number of stores decreased by 11 to 35 during the H1 period.
In Q3, the internal trend of cost reduction and efficiency improvement continued, and overall profits were under pressure. Q3 gross margin decreased by 1.0 pct, and internal costs continued to be reduced and efficiency improved; Q3 sales/management/R&D/finance expenses ratio was +3.3/+0.8/+1.9/+0.4 pcts year-on-year. The company continues to deepen organizational transformation, improve organizational efficiency, and achieve further streamlining of the number of employees. The number of H1 employees decreased by 8.4% to 8,403 compared to the beginning of the year, leading to control of remuneration expenses. Q3 confirmed a loss of 8.25 million yuan to the mother, and overall profit is still under pressure.
Accelerate the overseas layout with the “customization+support+technology” model. Using the Sunpina brand as its logo, the company actively invests in the Middle East, Southeast Asia, Africa and other regions, and provides comprehensive support policies including products, software, sales and operation training. At present, overseas franchisees have successfully landed in Malaysia, Australia, Brunei, Vietnam, Saudi Arabia and other countries.
This year, we will continue to promote the efficiency improvement of the entire channel chain and the deepening of terminal coverage. 1) Directly managed cities: The company promotes the “1 (large store) +N (direct management/franchise store) +Z (integrated assembly store)” model, and the direct management to franchise transformation continues to advance. Ultimately, direct-managed stores will position themselves as superstores and support and empower dealers in multiple dimensions such as logistics and delivery, while speeding up the terminal coverage of multi-format franchisees and expanding the luggage and packaging business. 2) Franchise cities: The company promotes the “1 (general distribution) +N (franchise/distribution store) +Z (integrated assembly store)” model to reduce the comprehensive operating requirements of “N” merchants to promote multi-channel customer acquisition by leveraging the local resources and systematization advantages of “1” merchants (such as warehousing services, etc.). This year's investment promotion is still the direction of the company's work. In particular, opening up markets in blank cities and third-, fourth-, and fifth-tier cities, and improving the national channel layout.
National household subsidies are being actively promoted. On the one hand, the company's distributors have responded positively to local government subsidies. Among them, regions with a good policy base have shown results. On the other hand, the company recently reached national subsidy cooperation with the governments of Guangzhou, Foshan and other places. Recently, the results are being quickly realized. As a leading enterprise, the company has doubled its benefits in this round with resources/qualifications and other advantages.
Focus on the main business of customization+supporting traditional advantages, and strive to promote high-quality development. This year, the company focused on customizing and supporting fields with traditional advantages, strengthening drainage through various methods such as “optional selection” and “699 packages”, amplifying the competitive advantages of its own supply chain system and information technology system, and delivering a more collaborative and personalized product portfolio. At the same time, investment promotion and channel expansion efforts have been stepped up, and the penetration of retail terminal layouts has been deepened. In particular, efforts have been focused on the luggage channel this year, which has better supported the operational resilience of dealers. The company will continue to promote organizational transformation and optimization, and reduce costs and increase efficiency in all aspects. The estimated net profit for 2024/2025 is approximately -0.108/0.062 billion yuan.
Risk warning
1. Real estate performance fell short of expectations; 2. The results of the Home Furnishing National Supplement fell short of expectations; 3. The company's channel expansion and operation fell short of expectations.
