A yearly revenue of 1.4 billion still can't stop the decline in performance! What happened to this home furnishing giant?

In recent years, the global smart home market has shown a rapid growth trend . Many domestic home furnishing companies have successfully expanded overseas with their own product advantages and have gained a certain market position.

In 2022, the revenue of Jiangxin Home Furnishing will not increase, but the profit will increase.

Recently, Jiangxin Home Furnishing, a well-known home furnishing company in East China, released its financial report for the whole year of 2022 and the first quarter of 2023.

In 2022, the company achieved operating revenue of approximately RMB 1.463 billion , down 24.02 % from RMB 1.925 billion in the same period of 2021. The net profit attributable to shareholders of the listed company was approximately RMB 334 million , up 11.95 % from RMB 298 million in the same period of 2021 .

In 2022, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately RMB 289 million , a decrease of 2.92 % compared with the same period in 2021. The net cash flow generated by operating activities was approximately RMB 264 million , an increase of 3.37 % compared with the same period in 2021 .

At the end of 2022, the total assets of Jiangxin Home Furnishing were 3.113 billion yuan, an increase of 0.51 % compared with the end of the previous year. The net assets attributable to shareholders of the listed company were approximately 2.698 billion yuan, an increase of 8.14 % compared with the end of the previous year .

In the first quarter of 2023, Jiangxin Home Furnishing's operating income was approximately 428 million yuan, a decrease of 7.43% compared with 462 million yuan in the same period of 2022 .

The net profit attributable to shareholders of the listed company of Jiangxin Home Furnishing in the first quarter of 2023 was approximately RMB 76.5946 million, an increase of 8.69% over the same period in 2022. After deducting non-recurring gains and losses, the net profit attributable to shareholders of the listed company was approximately RMB 61.8916 million, an increase of 0.34% over the same period in 2022.

Combining the sales data for the whole year of 2022 and the first quarter of 2023, it can be seen that the revenue of Jiangxin Home Furnishing has declined significantly. Although the net profit has not shown negative growth, the growth rate has slowed down significantly, resulting in a situation where revenue has not increased but profit has increased.

Jiangxin Home Furnishing ( Changzhou Jiangxin Smart Home Furnishing Co., Ltd.) was established in 2002. Its main business is the research and development, design, production and sales of smart electric sofas, smart electric beds and their core accessories.

After more than 20 years of development, Jiangxin Home Furnishing has become an important ODM supplier in the global smart electric sofa and smart electric bed industry , and owns internationally renowned independent brands such as MotoMotion, MotoSleep, HHC, and Yourway .

The downstream customers of Jiangxin Home Furnishing's ODM business include leading American furniture retailers such as Ashley Furniture, Bob's Discount, and Badcock . Its own brands cover overseas retailers such as HomeStretch, Mor Furniture, and Jackson Furniture , and have been widely recognized in overseas markets.

In September 2021, Jiangxin Home Furnishing officially landed on the Shenzhen Stock Exchange's ChiNext , raising a total of more than RMB 1.45 billion.

From the sales model, the company's product sales are mainly exported, and the main export area is the United States . In 2022, affected by various external environments, the disposable income and consumption capacity of local consumers in the United States have been greatly impacted, which has also had a very direct impact on the revenue of Jiangxin Home Furnishing .

According to the financial report of Jiangxin Home Furnishing for the whole year of 2022, the company's largest source of income is smart electric sofas, with annual revenue reaching 975 million yuan, accounting for 66.66% of total revenue. The second largest source of income is smart electric beds, with revenue of 273 million yuan in 2022, accounting for 18.69% of total revenue.

According to specific sales volume, the sales volume of Jiangxin Home Furnishing electric sofas reached 500,000 units in 2022.

The dangers and opportunities of the global home furnishing market

The smart home track in which Jiangxin Home Furnishing is located has a very broad market.

According to Omida's latest research , the global smart home market size is expected to exceed US$279 billion by 2026 .

The smart home market continues to grow due to a variety of factors , such as the increase in Internet users, the popularity of smartphones and smart tools, the growth of consumer disposable income, the increase in demand for home monitoring, and consumers' continued demand for the security and convenience of smart home products.

It is important to note that the shipment volume of smart home products is directly related to consumers’ utilization and usage requirements, and consumers tend to prefer convenient and energy-saving products.

At present, the mainstream market for smart homes is still Europe and the United States . Southeast Asian countries have huge development potential , while Africa is still in its infancy .

Taking the US market as an example, the market demand for smart home products continues to rise.

According to Statista 's survey data, the proportion of American households using smart home products reached 43.8% in 2022 , and this figure is expected to rise to 62.7% by 2026. In 2022, the market size of smart homes in the United States reached US$31.4 billion , and it is expected to grow to US$48.1 billion by 2026 .

Such a huge market size and so many hot-selling products will inevitably attract more and more sellers to enter the market.

However, there are also various crises in this track.

Since last year, the home furnishing industry has faced an unprecedented impact, with many well-known big sellers and retailers facing bankruptcy and closure ...

In July 2022, Altmeyer Home Stores, an American home furnishings retailer with 81 years of operating history, filed for bankruptcy and liquidation in court.

In October 2022, Eve Sleep, a British home furnishings retailer that once had annual revenue of more than 200 million yuan , announced bankruptcy and liquidation due to continued losses and falling stock prices. Its related brands, websites and assets were acquired by another bedding retailer, Bensons for Beds.

In November 2022, United Furniture Industries, the parent company of Amazon's home furnishings giant Lane Home Furnishings, suddenly announced that it would permanently close down, and all of its 2,700 employees were laid off.

Recently, Bed Bath & Beyond, a 52-year-old American home furnishing retailer , officially filed for bankruptcy. The company's 360 Bed Bath & Beyond stores and 120 buybuy BABY stores will temporarily continue to operate and conduct clearance sales before closing. It is expected that by June 30 , all sales of Bed Bath & Beyond 's remaining physical stores will be completed and the properties will be vacated.

Amazon's home furnishings store Fully also ceased operations at the end of April this year. Currently, the company's website is selling its inventory at half price, and some products sold on the Amazon platform are already "out of stock".

Since 2022, affected by the international situation, the raw materials of home furnishing products have continued to rise, and logistics costs have also increased accordingly. Many former home furnishing giants have gone out of business, bankrupt, and closed down... Countless companies in many sub-sectors of the home furnishing market have been implicated.

Judging from the current market situation, the sales growth of companies and sellers in this field has also slowed down significantly. How to find new ways out in the complex market environment has become an important issue that many home furnishing companies and sellers have to face.

For sellers who want to enter the home furnishing category , it is imperative to do their homework in advance, such as understanding popular trends in Europe and the United States, keywords that online consumers often search for when purchasing related products, and paying attention to integrating product functions based on consumer habits.

For some household products that carry electrical appliances, sellers must also obtain relevant certifications in the country of sale and operate in compliance with the requirements of various e-commerce platforms.

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