Fuanna Annual Revenue Of 2 Billion 918 Million Yuan, Double-Digit Growth In Net Revenue

In April 9, 2019, fuanna released its 2018 annual report, which reported that the company achieved a profit of 2 billion 918 million yuan in 2018, an increase of 11.55% over the same period last year, and a net profit attributable to shareholders of listed companies was 543 million yuan, up 10.11% over the same period last year. Net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 490 million yuan, an increase of 6.68% over the same period.

Fuanna is mainly engaged in R & D, design, production and sales of high-end bedding and home life products. After 25 years of development, she has VERSAI (light luxury art brand), fuanna (fashion classic brand), Xin Le music (popular fashion brand) and Ku Zhiqi (child brand) to meet the needs of different consumers. Fuanna has unique personalization characteristics in the home textile industry. In the core product design process, most of the products are injected into the original design of art. At present, there are 23 effective patents, 12 software copyright certificates and 925 copyright certificates, of which 135 copyright items are reported throughout the year. It is also the creator of the world's largest innovation in flat web design and the largest single silk jacquard design in the world.

Double digit growth in net revenue

From the perspective of six years, the annual revenue growth of fuanna has shown an overall growth trend, rising from 1 billion 864 million yuan in 2013 to 2 billion 918 million yuan in 2018, and the growth rate has slowly recovered, from 4.89% in 2013 to 13.18% in 2017, and slightly down in 2018, to 11.55%. The net profit attributable to shareholders of listed companies increased from 315 million yuan in 2013 to 543 million yuan in 2018, but the overall growth rate showed a slowing trend. In the 2013-2015 fiscal year, there was a more serious slide. In the 2015-2017 fiscal year, the net profit growth rate was fluctuating, and the net profit growth rate in 2018 fiscal year fluctuated, which was 10.11%.

Home textile industry remains stable, and there is uncertainty in customized home furnishing.

In recent years, many factors such as economic growth and speed drop, demographic dividend reduction, labor cost rising and real estate market cooling have been combined. The period of barbaric growth has already passed, and home textile enterprises will be able to acquire new growth points in order to cope with the new situation, or increase new production lines, expand sales categories, or arrange other industries through mergers, acquisitions, investments and so on.

In recent years, the custom home industry has suffered some setbacks. Many home textile enterprises have seen the heat of "big home" and have entered the office. Whether the road will become crowded gradually due to the increasing number of competitors is unknown.

At present, fuanna's main competitor, Luo Lai life, Meng Jie home textiles, and many love has embarked on the road of big home.

In July 2016, the flagship store of the "house art beauty home" sub brand "fuanna beauty home" was put into trial operation. In 2017, fuanna clarified the development strategy of "home textiles and furniture for two wings". In 2018, fuanna's custom house business gradually entered the right track, and three production lines of Longhua, Guangdong, Huidong and Jiangsu Changshu were put into operation in Shenzhen.

From the data point of view, the home textiles category still occupies the largest revenue of fuanna in 2018, accounting for 96.58% of revenue, up 10.98% over the same period last year. Furniture accounted for 3.42% of revenue. In 2017, it was a year of explosive growth, and achieved a 319.50% growth. In 2018, sales channels for furniture lines gradually spread, but the growth rate dropped to 30.54%, earning only 99 million 710 thousand yuan in revenue.

By the end of 2018, 12 flagship stores in the United States had a total area of 13000 square meters, with an average shop area of more than 1000 square meters. But it is worth noting that the 12 flagship stores opened in the first half of the year. Fuanna has announced that the number of stores of "Anna Anna beauty" will reach 20 by the end of 2018. Perhaps it is because the new business growth is not up to expectations, or the overall situation of the industry is not ideal, or "rich Anna", though backed by listed companies, can get a lot of money and resources, but because of its small size and influence, it is far from being able to compete with the customized home giant. In a word, fuanna seems to have slowed down the pace of promoting large household business for the time being.

At present, "Anna Anna" has begun to enter the stage of marketing channel expansion, but whether it can become a new growth point of income and profit is very uncertain.

Industry integration is at hand, and fuanna answers

The market share of the whole home textile industry is "200 billion of the plate". The market share of the main listed companies in the industry is the highest, and the highest is Luo Lai home textiles. 2.44%, fuanna is less than 1.5%, and the total number of five listed companies is slightly more than 5%. Overall, the industry is still relatively fragmented.

The situation has already begun.

In 2016, the average revenue growth of home textile enterprises above designated size was 5.62%, 4.76% in 2017 and 3.78% in the first 11 months of 2018. Compared with the growth rate of 8%-10% of domestic textile listed companies such as Luo Lai and Fu Anna, the conclusion can be drawn as follows: The concentration of home textile industry is continuously improving. Under this environment, the intra industry performance differentiation will gradually widen, and the head enterprises will benefit significantly.

From the perspective of the structure of home textile industry, the demand for mid and low-grade products is shrinking, while the demand for medium and high grade products with high technology and high added value is relatively low. Fuanna chose to take the middle and high-end route, play the design cards, and have the strength to compete with the low-grade products. But whether it can stand out from the competition of the giants represented by the life of Luo Lai, it needs to undergo the test of time.