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August 21, Caixin Media (Reporter: Luoyi Chen), under the pressure of declining home furnishing consumption, leading company Jason Furniture (603816.SH) did not show obvious improvement in its performance after the change of ownership. In the first half of the year, the company's performance growth stagnated, with revenue remaining flat year-on-year and net profit attributable to shareholders decreasing by 2.97%. The Q2 performance declined significantly.

Jason Furniture disclosed its semi-annual performance report tonight. In the first half of this year, the company achieved a revenue of 8.908 billion yuan, an increase of only 0.34% year-on-year; the net profit attributable to shareholders was 0.896 billion yuan, a decrease of 2.97% year-on-year. Looking at each quarter, the revenue and net profit attributable to shareholders of the company increased positively year-on-year in the first quarter, but in the second quarter, the performance declined year-on-year, with a decrease of 7.44% and 9.07% in quarterly revenue and net profit respectively.

The market's expectations for Jason Furniture's performance this year are not low. Previously, several brokerages predicted that the company's full-year revenue and net profit attributable to shareholders are expected to achieve an increase of more than 11% year-on-year. Judging from the performance in the first half of the year, in order to meet market expectations, Jason Furniture is facing considerable operating pressure in the second half of the year.

In the semi-annual report, the company mentioned the acceleration of transformation from soft furnishings to whole-house customization. "The expansion of whole-house custom stores has maintained a high-speed growth, the speed of opening integrated stores has further increased, and the sales of whole-house packages in integrated stores account for over 35%." Focusing on the whole-house business, Jason Furniture's strategy is to raise prices while lowering costs. The company stated that the launch of the "698 package" in the first half of the year has achieved good market response. It is reported that the so-called "698 package" refers to a wardrobe package priced at 698 yuan per square meter and a cabinet package priced at 698 yuan per square meter. It is the flagship product of the company's "people's renovation project", launched in response to the government's call to promote home furnishings consumption.

At the end of last year, Jason Furniture changed ownership and the market expected that after being acquired by the "midea group", the company would bring new momentum to its development. However, based on the performance in the first half of the year, in the context of the downturn in home furnishing consumption, the company took the initiative to launch low-priced packages to adapt to the "internal competition", but did not show more differentiated competitive advantages.

At the end of 2023, the son of the actual controller of Midea Group, He Xiangjian, planned to acquire 29.42% of Jason Furniture's shares for 10.299 billion yuan, replacing the Gu Jiangsheng family as the actual controller of the listed company. Soon after, the scale of this largest equity acquisition in the home furnishing industry shrank, and He Jianfeng eventually successfully acquired it for 8.88 billion yuan. Since the beginning of this year, with the decline in Jason Furniture's stock price, He Jianfeng has received media attention due to the trading losses. Compared with the initial transfer price of 36.7187 yuan per share, the current stock price of Jason Furniture has fallen to 25.10 yuan per share, with a floating loss of over 31% on the trading book.