Accelerate integration through the capital market home industry

In the past two years, more and more home companies have embarked on the road to market. According to the "Issuance Supervision Department's Initial Public Offering Stock Review Work Process and Reporting Enterprise Status" published on April 18 by the China Securities Regulatory Commission, Hongxing Meikailong Home Group, Op Lighting, Gujia Household, and Jiangsu Hengkang Home Technology are "accepted". Stage; Zhejiang Yongyi Furniture, Guangzhou Haolai Ke Creative Home, Hunan Love Home Textiles, and Three Tree Paints are in the “Feedback” stage. Home companies get together and become one of the hottest topics in the home industry this year.

Dongpeng and Dongyi have been successfully listed and listed in the same way as their counterparts. In recent years, the process of home companies seeking listing has been quite difficult. It is understood that in 2012, the 33 companies that were preparing to go public were stranded and stranded, so that many companies preparing for listing had to slow down and wait and see. Last year, Dongpeng alone went on the market successfully, but it still caused the home furnishing industry to discuss whether the home business is suitable for listing. At the beginning of this year, Dongyi Risheng was successfully listed on the Shenzhen Stock Exchange. With more and more successful examples, more and more companies have embarked on the road to listing. The wave of listings has been especially fierce in this spring and summer.

Yin Yuxin, general manager of Jixingdeyi Home Plaza, believes that each company will have needs in the development process, so after reaching a certain level, many companies will seek listing to fill the demand. “Only by satisfying the demand, can companies be able to develop better.” Mr. Chen Ayu, chairman of Xilinmen, once said that the development trend of the home industry is similar to that of home appliance companies, and there is a lot of room for the home industry to integrate in the future.

With the help of the capital market, the consolidation of the industry has accelerated the collective sprint of IPOs by home companies, which is considered by many homeowners as a sign that the stock market is improving. Some industry sources believe that the market value of the home industry is being evaluated in a favorable manner. The home industry can be said to be a traditional industry with a large investment. Whether it is the expansion of production lines, the research and development of new products, or the expansion of sales channels, huge amounts of money must be expended, so many home-based companies are also more eager Other industries are much more intense. Investment bankers said that the home industry is now in a critical period of integration and restructuring. The move of home companies to enter the capital market on a large scale shows that the industry sees the IPO as a new opportunity for the market, and the pace of industry consolidation will further accelerate.

It is a normal phenomenon for home companies to get listed and listed. Every company hopes to get a more adequate fund to grow and grow. In the past two years, the actions of many companies have led many people to feel that the pace of integration in the home industry has further accelerated, and the market share will be concentrated in big brands. Whether it was the combination of Xilinmen, Yihua Wood and the three major furniture brands signed at the end of last year, or the acquisition of JSWB by Redstar Meikailong earlier this year, the linkage and cooperation between brand enterprises has begun to shift from previous forms of cooperation. In-depth substantive integration, from the small factory foundry to the OEM integration between big brands, from manufacturing technology cooperation to a small-scale capital integration. Zhu Changling, chairman of the China Furniture Association, said that this is the result of years of accumulated development in the home industry. He believes that home companies have entered the financial market, indicating that more and more companies have gradually changed the scale of “small and scattered” in the past and have grown into modern enterprises in all aspects.

Although the listing is difficult, it is even more difficult to use a good company to make the listing more successful. It will certainly provide convenience, but after listing, it does not mean that the operation of funds will not be a problem. According to the 2013 financial report released by listed home companies, many home-based companies experienced a difficult year in 2013. According to the 2013 financial results released by Royal Family (01198 HK) and JF Home (00776 HK), the revenues of both companies declined last year, and the royal family's revenue fell by 6.6% year-on-year, while JF's home revenues decreased by 34.4% year-on-year. The company had a net loss of HK$456 million. Although Jiafeng’s home loss has narrowed, it was still with a loss of HK$27 million.

According to Secretary-General Liu Chen of the Beijing Association of Home Furnishings, most household enterprises are characterized by private ownership. After becoming a listed company, they need to be more standardized in all aspects. “Regardless of the company’s management system or product quality, listed companies need to change to the modernization regulatory model. Moreover, after the listing of the company, if the funds are sufficient, they cannot continue to be self-styled and must strengthen research and development and innovation. Expanding the demand and rationalizing the use of funds is the correct meaning of the listing of companies."