After a two-year trough, the building materials and home furnishing market will recover in 2023.
On December 15, the National Bureau of Statistics released the total retail sales of consumer goods in November 2023. According to the data, the total retail sales from January to November were 137.7 billion yuan, a year-on-year increase of 28%；In terms of construction and decoration materials, the total retail sales from January to November were 141.7 billion yuan, down 7% year-on-year8%。
In fact, the recovery of the building materials and home furnishing market is more obvious in the store.
According to the data, the national building materials home prosperity index BHI was 118 in November84, down 1559 points, a year-on-year increase of **3232 points. The sales volume of building materials and home furnishing stores above designated size in November was 13195 billion yuan, down 1110%, a year-on-year increase of **11677%；The cumulative sales from January to November 2023 are 14,2145.6 billion yuan, a year-on-year increase of **3050%。
Dongguan** research report pointed out that in 2023, after the gradual liberalization of China's epidemic prevention policy, residents' enthusiasm for consumption will heat up, and the superimposed real estate favorable policies and home furnishing exports are expected to gradually improve, and it is expected that the scale of China's home furnishing retail will continue to expand. It is estimated that by 2025, the retail scale of China's home furnishing industry is expected to reach 479 trillion yuan, CAGR is expected to reach 2 in 2021-202585%。
The IPO was frustrated.
Although the recovery is the general trend, the IPO application of building materials and home furnishing companies has not been smooth due to the phased tightening of the IPO rhythm announced by the China Securities Regulatory Commission in August.
On August 27, the China Securities Regulatory Commission issued a regulatory arrangement to coordinate the balance of the primary and secondary markets to optimize IPO and refinancing, which proposed, "according to the recent market situation, the pace of IPO will be tightened in stages to promote the dynamic balance of investment and financing", "for the large-scale refinancing of listed companies in the financial industry or large-capitalization listed companies in other industries, implement a pre-communication mechanism, and pay attention to the necessity of financing and the timing of issuance".
Affected by this, the IPO of building materials and home furnishing companies has been repeatedly frustrated. According to incomplete statistics, from 2023 to the present, there have been 17 home building materials companies including Haojiang Intelligence, Zhiou Technology, Kefan Home, Marg Home, Far Beyond Wisdom, Times Decoration, Schneemann, Huangpai Home, New Pearl, Haobo Window Control, Tute Shares, Yunfeng New Materials, Effenda, Higold Group, and Marco Polo.
Among them, the four companies that have been successfully listed are Haojiang Intelligent, Zhiou Technology, Hengshang Energy Conservation and Sentai Co., Ltd., and their main businesses are smart home industry chain, home cross-border e-commerce, curtain wall decoration and wood-plastic flooring.
There are 7 companies that have suspended their listings, accounting for more than half, namely Huangpai Home Furnishing, New Pearl, Haobo Window Control, Far Beyond Wisdom, Times Decoration, Yunfeng New Materials, and Marco Polo, and most of the reasons for the suspension are that the financial information recorded in the IPO application documents has expired and needs to be supplemented.
Among them, there are many companies that have hit IPOs for the second time. Taking Royal Home Furnishing as an example, the first IPO application was accepted by the main board of the Shenzhen Stock Exchange in April 2022, but it was suspended due to the failure to respond to the CSRC's inquiries in a timely mannerIn March 2023, Royal Home Furnishing updated its IPO prospectus and was accepted by the main board of the Shenzhen Stock Exchange.
In addition, there are 3 companies that have withdrawn their listing applications, namely Kefan Home, Marg Home and Schneemann. Although the three companies are all public reasons for canceling orders, in terms of performance, their recent financial data is not ideal.
Taking Kefan Home Fnishing as an example, the prospectus shows that from 2020 to 2022, Kefan Home's operating income will be 45.5 billion yuan, 62.6 billion and 61.5 billion yuan;Net profit (calculated on the basis of the lower before and after deducting non-recurring gains and losses) was 4168720,000 yuan, 7600610,000 yuan and 7221490,000 yuan.
After entering 2023, Kefan Home Furnishing is facing the dilemma of declining revenue. According to the data, from January to March 2023, the operating income of Kefan Home Furnishing decreased by 23 compared with the same period last year02%, net profit attributable to shareholders of the parent company decreased by 89 from the same period last year92%。
In addition, Kefan Home Furnishing also expects that the operating income from January to June 2023 will be 2$4.5 billion to $25.5 billion yuan, a year-on-year change of -717% to -338%；It is expected that the net profit in the same period will be between 26.5 million yuan and 30 million yuan, a year-on-year change of 3365% to 513%。
It is worth mentioning that Tut shares and Higold Group were also suspended from listing due to the expiration of financial information, but the listing review process was resumed due to supplementary information.
At present, the closest to the listing process is Effenda. On April 27, the Listing Committee of the Shenzhen Stock Exchange announced that Effenda met the issuance conditions, listing conditions and information disclosure requirements, which means that the IPO of Effenda GEM has successfully passed, and its IPO road has ushered in substantial development.
In other words, so far in 2023, only 4 companies in the home building materials industry have been successfully listed, accounting for less than 30%.
Mergers and acquisitions are frequent.
Some of the pan-home enterprises that have been successfully listed have no choice but to introduce foreign aid due to financial pressure.
On September 20, Beijing New Building Materials announced that the company intends to acquire control of Jiabaoli Chemical Group's shares, and reached a preliminary intention with Shijun (Hong Kong)**, the largest shareholder of the target company, on equity acquisition. At the same time, in order to further demonstrate the sincerity of the acquisition and accelerate the related work of due diligence and audit evaluation, Beijing New intends to pay 10 million yuan of due diligence earnest money to the bank account jointly supervised by both parties.
In less than a month, the news of Shell's acquisition of Love Space came.
According to the announcement, Beike Meijia, a wholly-owned subsidiary of Beike, signed an equity acquisition agreement with Space Intelligence, and Space Intelligence will become its wholly-owned subsidiary after the completion of the acquisition. It is reported that the consideration for this transaction will not exceed about 15500 million yuan, subject to the completion of delivery conditions.
In November, the largest equity merger and acquisition case in the home furnishing industry was born - Midea Department with 1029.9 billion yuan into the main home, but from the latest announcement, the previously agreed 1029.9 billion yuan has shrunk to 88800 million yuan.
According to the announcement of Gujia Home, the controlling shareholder Gujia Group and its concerted action person TB Home Limited, the actual controller Gu Jiangsheng, Gu Yuhua and Wang Huoxian have signed a strategic cooperation and equity transfer agreement with Infore Ruihe Investment, and Infore Ruihe Investment has transferred a total of 24.2 billion shares of Gujia Home Furnishing, accounting for 29% of the total share capital42%, and the transfer** was adjusted to 367187 yuan shares, the total transfer price was adjusted to 88800 million yuan.
After the completion of the transaction, the controlling shareholder of Gujia Home Furnishing will be changed from Gujia Group to Infore Ruihe Investment, and the actual controller will also be changed from Gu Jiangsheng, Gu Yuhua and Wang Huoxian to He Jianfeng, the only son of He Xiangjian, the founder of Midea Group.
In the same month, the draft reorganization plan of Guangtian Group, a veteran building decoration enterprise, was released, and ST Guangtian recently announced the draft reorganization plan, and Shenzhen State-owned Assets Special Zone Construction Engineering Group will be the industrial investor of the reorganization, and jointly participate in the reorganization investment of the case with high-tech investment group, Qianhai Foundation, Zhongyuan Trust, etc.
It is worth noting that home furnishing enterprises and home furnishing stores are a relationship of prosperity and loss, and the plight of home furnishing enterprises also appears in home furnishing stores.
Specifically, in January 2023, C&D Co., Ltd. announced that the company signed a formal share transfer agreement with Red Star Holdings, the controlling shareholder of Macalline, and Che Jianxing, the actual controller, to acquire Macalline 2995% of the shares, per share** is set at 482 yuan shares, the total consideration of the transaction is 62$8.4 billion.
In November, the controlling shareholder of the house planned to hold 62.9 billion unrestricted tradable shares were transferred to BBMG Group, accounting for 10% of the company's total share capital, and the transfer** was 355 yuan shares, the total transfer price is 224.2 billion yuan.
Bai Wenxi, chief economist of IPG China, said that with the continuous development of the pan-home industry and the increasingly fierce market competition, some small enterprises and enterprises lacking core competitiveness will be eliminated, while large enterprises will further integrate industry resources through mergers and acquisitions, increase market share, and enhance their competitiveness and profitability.
In Bai Wenxi's view, the frequent trend of mergers and acquisitions of pan-home enterprises represents multiple trends such as industry integration, diversified development, industrial chain improvement and capital operation, which will help improve the competitiveness and profitability of enterprises. At the same time, it is also necessary to pay attention to the risks and challenges of mergers and acquisitions, and avoid problems such as blind expansion and over-reliance on external financing.