Text |Zhang Jiaru.
On February 2, Markor Home Furnishing opened low and went low, with the lowest intraday 228 yuan, a low since 2015. As of **, the company's stock price is trading at 247 yuan, down 04%, with a total market capitalization of 365.4 billion yuan.
In the past 5 trading days, Markor Home Furnishing has fallen for 4 days, laying the groundwork for today's intraday record of a new low. On the news, Necker Home recently disclosed the performance pre-loss announcement.
On the evening of January 30, Markor Home announced that it is expected to lose 2 net profit attributable to the parent company in 2023700 million to 40.5 billion yuan; Deduct non-net profit loss 2800 million to 41.5 billion yuan.
This is not the first time Markor's losses have been made. In 2022, the net profit attributable to the parent company of Markor Home Furnishing will be 29.8 billion yuan, deducting a non-net profit loss of 31.6 billion yuan.
In two years, Markor Home is expected to lose more than 5600 million yuan. Markor Home's performance was lower than the company's management's expectations.
At the beginning of 2022, Markor Home Furnishing released the 2022** option incentive plan, which set performance assessment targets from 2022 to 2023, and there is a large gap between the actual data and the target data.
It is worth noting that the loss of Markor Home Furnishing in the past two years is the two years that Feng Lu, the son of the company's founder and actual controller, Feng Dongming, served as the chairman, and how to lead the company to turn around its losses has become a challenge in front of Feng Lu.
According to the data, Markor Home Furnishing is one of the leading home furnishing enterprises, mainly engaged in the production and sales of high-end furniture and ancillary products, and its brand products cover solid wood finished furniture, sofas, home accessories, sleeping products, custom cabinets, etc., mainly for high-end new middle-class customers.
As early as November 2000, Markor Home Furnishing was listed on the Shanghai Stock Exchange and was one of the earliest listed companies in the home furnishing industry. In 2000, Markor Home Furnishing revenue was 23.6 billion yuan, net profit attributable to the parent company of 3715600,000.
After listing, Markor Home's performance has grown steadily, and in the 21 years from 2000 to 2021, the company has achieved profitability. In 2022, the company's revenue will be 449.6 billion yuan, down 14 percent year-on-year78%, net profit loss attributable to the parent company 29.8 billion yuan, the first loss since listing.
As for the reasons for the loss, Markor Home mentioned that the logistics and distribution in some areas of the city were blocked and the delivery could not be completed, resulting in the delay of the completion of the order and the reduction of revenue; The postponement of some consumers' purchase intentions has delayed the sales progress, which has affected domestic retail orders, especially the scale of sales, which in turn has affected the company's annual revenue and profit performance.
In 2023, Markor Home Furnishing is expected to lose money again, and it will also be the first time in more than 20 years of listing that it has suffered two consecutive losses. Judging from the pre-loss range, the company may also record the largest loss after listing.
As for the reasons for the loss, Markor Home Furnishing pointed out in the announcement that the consumption of the home market has been downgraded and the demand has declined. The phased changes in the demand of the domestic high-end home furnishing market and the geopolitical impact of overseas business led to an increase in operating costs and a decline in the comprehensive gross profit margin, which in turn affected the profitability of the whole year.
How to lead the company out of the predicament of losses has become a challenge for Chairman Feng Lu.
In April 2022, Markor Home disclosed the announcement of the change of chairman, and due to work adjustments, Kou Weiping applied for resignation as chairman of the company. The Board of Directors elected MarkFeng as Chairman.
Who is Feng Lu? According to the announcement, Feng Lu was born in 1988 and has a master's degree. He holds a bachelor's degree in economics and East Asian studies from Harvard University, an MBA from Harvard Business School, and was a former Morgan Stanley capital markets analyst and chair of the Morgan Stanley Asia-Pacific Analyst Council for Social Responsibility.
In 2018, Feng led Markor's acquisition of Rowe and Jonathan Charles, and in 2019, he established the Markor's Art Center in the United States. From April 2021 to April 2022, he served as the vice chairman of the company.
It is not difficult to see that Feng Lu has rich experience in studying abroad in prestigious overseas universities, as well as rich overseas work experience, and also has experience in the company's management before serving as the chairman of Markor Home.
In addition to a series of job resumes, Feng Lu also has another identity, that is, Feng Dongming's son. Feng Dongming is the founder and actual controller of Markor Home. The position of chairman of Markor Home Furnishing has long been held by Kou Weiping, who is Feng Dongming's entrepreneurial partner.
After Feng Lu became the chairman, Markor Home Furnishing made some adjustments from brand to marketing. For example, as mentioned in the 2023 pre-loss announcement, "implement the brand renewal strategy, comprehensively deepen the design capabilities of the whole case, and make every effort to carry out precision marketing." ”
Under a series of measures, Markor Home said that "operating income remained stable compared with the same period last year", but the net profit attributable to the parent company lost again, and in 2024, the company wants to turn around under the leadership of Feng Lu.
Markor Home said that in 2024, the company will continue to focus on core brands and growth businesses, and carry out business model innovation and structural adjustment. Continue to promote cost reduction and efficiency increase, and achieve performance turnaround and growth against the trend through cost tapping, organization, asset weight reduction, channel optimization, etc.
According to historical announcements, Markor Home Furnishing will have a goal of 10 billion yuan in 2024.
In January 2022, Markor Home disclosed the 2022 ** option incentive plan, which set the performance appraisal target for the first grant of ** option.
From 2022 to 2024, the assessment of operating income will be no less than % growth compared with 2020. For the requirements for net profit attributable to the parent company, the growth rate compared with 2020 shall not be less than %.
The above-mentioned "net profit attributable to the parent company" refers to the audited net profit attributable to shareholders of the listed company, but excluding the impact of this and other share-based payment expenses of the equity incentive plan as the basis for calculation.
According to the data, in 2020, the operating income of Markor Home Furnishing will be 457.1 billion yuan, and the net profit attributable to the parent company is about 30.6 billion yuan,. Based on this estimate, the company's operating income and net profit to be completed from 2022 to 2024 will be about 68600 million, 89100 million, 114300 million, and 39.7 billion, 5800 million, 800 million.
In fact, in 2022, Markor Home's revenue will be 449.6 billion yuan, net profit loss of 29.8 billion yuan, both data are not as good as the data in 2020, and there is a large gap with the data of the performance appraisal target. Due to the failure to meet the option incentive conditions in 2022, the ** option attributable to 2022 will become invalid.
In the 2023 performance forecast, Markor Home said that "operating income remained stable compared with the same period last year", that is, 449.6 billion yuan, with the performance appraisal target set at 89There is a large gap of 100 million yuan, and the net profit attributable to the parent company will lose again in 2023, and there will be a large gap with the assessment target.
In 2024, Markor Home Furnishing will complete 114With an assessment target of 300 million, revenue needs to be doubled, and the net profit attributable to the parent company not only needs to turn losses into profits, but also needs to set the highest value since listing, which is a great challenge.
On the whole, Markor Home Furnishing has achieved stable revenue in 2023 under the extremely challenging external environment, but it still has not turned around its losses, and the company's development key word in 2024 is "reducing costs and increasing efficiency", which is intended to achieve a turnaround while increasing revenue.
What do you think about the changes in Markor Home's performance?