一
Listed/to-be-listed decoration company
Caught in a storm of complaints
A few days ago, the Shenzhen Stock Exchange accepted Tubatu Group Co., Ltd.’s GEM listing application. The prospectus submitted by Tubatu to the Shenzhen Stock Exchange shows that the number of its public offerings on the GEM shall not be less than 25% of the company's total share capital after the issuance, and shall not exceed 60 million shares, and the total share capital after the issuance shall not exceed 240 million shares. The planned funds to be raised are approximately 704 million yuan (see the figure below for the investment direction of the raised funds).
The prospectus also shows that in the past three years, Tubatu has achieved revenue of 583.4983 million yuan, 680.3351 million yuan and 615.4525 million yuan respectively, and net profits of 38.6297 million yuan, 79.6790 million yuan and 86.5975 million yuan respectively. At present, Tubatu's business has covered 347 cities. The platform has accumulated 114,000 home decoration companies and 9,000 furniture and building materials suppliers, and has successfully matched owners and decoration companies 7.718 million times.
Tubatu’s sprint to become the “No. 1 home decoration stock on the Internet” has attracted attention both inside and outside the industry. At the same time, Dongyi Risheng, the "number one home improvement stock", was almost ST (referring to the exchange's special treatment of stock transactions of listed companies with abnormal financial conditions or other conditions) due to continued losses.
In 2019, Dongyi Risheng's revenue and net profit both declined, achieving revenue of 3.799 billion yuan, a year-on-year decrease of 9.62%; a net loss attributable to shareholders was 249 million yuan, a year-on-year decrease of 198.66%. 2020 is a critical year for Dongyi Risheng. According to its annual financial report disclosed, the company's net profit attributable to shareholders successfully returned to "positive" in 2020, reaching 180 million yuan, a year-on-year increase of 172.34%. Some media revealed that Dongyi Risheng’s profit rebound in 2020 was due to its “surprise house sales” at the end of the year. In December 2020, Dongyi Risheng sold a total of 19 properties in Beijing, cashing out a total of approximately 122 million yuan, increasing the company's net profit by 84 million yuan.
After just avoiding the risk of being STed, Dongyi Risheng fell into multiple complaints. The Black Cat platform shows that Dongyi Risheng has made 43 complaints on the Black Cat platform, 21 of which have been processed so far, and half are waiting to be processed.
In one case, a consumer complained that the decoration company had "disappeared" with money for two years without any reason.This consumer signed a contract with Original International Villa Decoration, a subsidiary of Dongyi Risheng, in 2019. According to the agreement between the two parties in the contract, Original International Villa Decoration should provide him with decoration design services for the villa under his name, but between the two parties After the first design and proposed modifications, the original international villa decoration "disappeared without any reason." Faced with consumers' requests for refunds, Original International Villa Decoration has been delayed for up to two years, and the refund issue has not yet been resolved.
In fact, it is not only Dongyi Risheng that is caught in the complaint storm, but also Tubatu, which is sprinting to become the first Internet home decoration stock.
Recently, Tubatu received a complaint from an owner because the renovation project was unfinished due to the collapse of the renovation company in which it settled. The owner said that he paid a total of 130,000 yuan, and the decoration company only completed the water and electricity projects by the completion deadline. Later, the decoration company went bankrupt, and Tubatu only refunded 30,000 yuan. And this complaint is just the tip of the iceberg. The reporter checked the Black Cat Complaint Platform and found that there were more than 30 consumer complaints against Tubatu in 2021, involving delays in construction, platform inaction, inferior projects, refund disputes, etc.
二
The decoration company closed down and ran away
Material dealers also want to "buy insurance"
To sum up, there are still various risks for decoration companies that choose to go public or plan to go public. The phenomenon of "bankruptcy" and "runaway" of small home decoration companies has long been commonplace.
Image source: Internet
Information released by the People's Court Announcement Network shows that since 2021, more than 54 decoration companies across the country have applied for or been ruled to be bankrupt, and 10 have applied or been ruled to be liquidated. This does not include some decoration companies that are missing.
The numerous renovation pitfalls and high risks have opened a door to a new world for insurance companies. Just last week, the 2021 Decoration Enterprises Trust and Guarantee Summit Forum and the launch conference of Decoration Enterprises Baobei Nanjing Company were held in Jiangbei New District, Nanjing. Decoration Enterprises Baobei Nanjing Company was officially established at the meeting. The company will provide citizens with road accident insurance, work-related injury insurance, three-party loss insurance and other products for decoration. It has launched a "decorate first, pay later" product in conjunction with a number of financial institutions."Service.
Some people in the industry joke that consumers need to "buy insurance" for decoration, so the material suppliers who choose to cooperate with decoration companies should also buy one.
After Shenyang Jingfeng Decoration ran away, according to incomplete statistics from the company's project manager and material suppliers, the relevant arrears have reached more than 10 million yuan; Nanjing Lugong Mansion was exposed to be poorly managed and unable to fulfill its contract, and decoration material suppliers reported The total amount of arrears amounted to millions of yuan; Guilin Gujia Construction and Home Furnishing Co., Ltd. was exposed to a "sudden shutdown", and the decoration company did not pay the construction team and material suppliers as scheduled; Liuzhou Dongba Elephant suddenly ended its operations, and the payment for materials could not be recovered There are at least dozens of dealers; Hefei Shengteng Home Decoration was exposed to have suddenly closed down, causing various material dealers to lose millions of yuan...
Looking back at the news about various decoration companies closing down and running away, we can find that owners, employees, and material suppliers have all suffered greatly, and the material suppliers are the most miserable among them.
Previously, there was an incident in Changsha where "the decoration company defaulted on payment to the material supplier and the building was empty, and the material supplier had no choice but to dismantle and take back the kitchen and bathroom appliances from the owner's decorated house"; there was also a ceramic tile distributor in Fuzhou The business owner defaulted on the payment because the decoration company ran away. With no way to complain, he threatened to go to the owner's house and "knock out" the tiles that had been laid. Behind these ridiculous incidents reveal the infinite bitterness of the material dealers.
三
Knowing that there are tigers in the mountains
Why are material suppliers at risk?
I believe many people have the same question. Decoration companies are so unreliable. Why do material suppliers still cooperate with them? They are even stuck in passive situations such as paying entrance fees, free samples, keeping prices to the lowest, and long-term arrears of payment. situation?
Image source: Internet
There are many problems and risks involved in cooperating with decoration companies. Of course, material suppliers are well aware of them, but in fact they have no more choices. Take ceramic tiles as an example. This main decoration material is a semi-finished product. When choosing ceramic tiles, most consumers prefer to go through the channels of decoration companies, and even the material selection and construction are left to the decoration companies.
In order to broaden sales channels, ceramic tile dealersHad to work closely with the decoration company. "The channel of decoration companies is an important channel for growth, but it is difficult to achieve profit growth, and there are even greater risks. For decoration companies whose material fee settlement cycle is too long, we can only selectively cooperate." A ceramic tile The dealer once revealed his inner struggles.
Unfortunately, the so-called "choice" is only a unilateral trust given by the material supplier. The "monthly settlement" or "weekly settlement" of the material payment promised by the decoration company may not be fulfilled.
Image source: Internet
"When they say monthly settlement, it is really a 'monthly settlement'. The payment is calculated once a month, and it takes half a month to wait for the signature of the relevant leader, and another half month to wait for the financial payment, and the delay becomes quarterly. "Knot." - A ceramic tile dealer once complained to reporters about the "short-word tactic" of payment by decoration companies.
“When we first cooperated, we said we would settle on a weekly basis, but after a few weeks it changed to a monthly settlement. The other party would always give us various reasons why we chose not to cooperate, and other brands would cooperate with them.” A ceramic tile dealer described the decoration channel as a hot potato that is hot to pick up and a pity to throw away.
Of course, there are also cases where material dealers and decoration companies have achieved "win-win cooperation". Here we have to mention the strategic cooperation between Shunhui Ceramics and Shengdu Decoration. Because it is an in-depth cooperation led by the brand headquarters, in recent years the two parties have joined forces and complemented their resources in areas such as product research and development, design application innovation, etc., and have continuously used new marketing models to deeply explore industry trends, grasp the trends in decoration and home decoration, and provide consumers with Provides high-quality, highly reputable home decoration experience.
It is worth mentioning that just today, Beike Zhaofang announced an agreement with Shengdu Decoration to acquire 100% of the equity of Shengdu Decoration for no more than 8 billion yuan, and the delivery will be based on management including regulatory approvals. Conditions for advancing the acquisition arrangement in stages. The transaction is expected to be fully completed in the first half of 2022.
Image source: Internet
Survival of the fittest, the pattern of the decoration industry is quietly changing. How can the cooperation model between material suppliers and decoration companies be optimized and adjusted in the future? All this will be led by the strong.
(Author: Hong Xiaochun)
