Recently, Oceano’s parent companies Diou Home Furnishing and Mona Lisa have released their 2020 annual reports. During the reporting period, Mona Lisa's operating income and net profit both increased significantly, while the operating income of Diou Home Ceramic Wall and Floor Tile Segment (Oceanno) increased slightly year-on-year.
Mona Lisa
Operating income was 4.86 billion yuan, a year-on-year increase of 27.86%
On April 1, Mona Lisa released a summary of its 2020 annual report: In 2020, Mona Lisa achieved total operating revenue of 4.86 billion yuan, a year-on-year increase of 27.86%, and a net profit attributable to shareholders of the listed company of 570 million yuan. A year-on-year increase of 30.89%.
The report shows that in 2020, while maintaining stable sales in the primary and secondary markets, Mona Lisa will increase its efforts to tap into the development potential of the third and fourth tier markets. By creating multiple winning points, it will promote the entire sales channel to penetrate into counties and towns. level market. Under the two-wheel-driven brand marketing strategy of "distribution channels + real estate strategy" and in light of the special situation where the epidemic has a greater impact on retail, Mona Lisa has taken various measures to help dealers quickly resume operations and increase cooperation in real estate strategies. , while increasing small B businesses (local real estate business, home decoration, renovation, etc.), the overall operating situation shows a trend of steady growth.
The report stated that there are four main reasons for Mona Lisa’s performance growth:
First, we actively and effectively responded to the impact of the COVID-19 epidemic and turned crises into opportunities. At the same time, the four production lines at the Tengxian base in Guangxi were successfully put into operation and reached the designed production capacity, effectively improving our competitiveness.
Second, during and after the epidemic, a variety of policies were launched to help dealers in various regions quickly resume work and business, and continued to promote the strategy of sinking distribution channels, increasing the layout of county and town-level markets across the country; continuing to promote brand building; In 2020, we will continue to maintain official cooperation with Inter Milan Club and become the exclusive supplier of official architectural ceramics for the 2022 Hangzhou Asian Games.
The third is to adhere to the two-wheel drive of "distribution channels + real estate strategy", expand new channel business cooperation, and integrate online and offline marketing strategies.
Fourth, new products and large-sized products such as ceramic slabs and rock slabs have been widely recognized by the market, and their leading advantages have been further highlighted. Sales of large slabs and rock slabs have grown rapidly year-on-year.
Deou Home Furnishing
Oceano's total revenue was 5 billion yuan, a year-on-year increase of 0.36%
On March 30, Oceano’s parent company Diou Home released its 2020 annual report. The report shows that in 2020, Diou Home Furnishing achieved a total operating income of 5.64 billion yuan, a year-on-year increase of 5.64 billion yuan.An increase of 1.2%; net profit attributable to the parent company was 570 million, a year-on-year increase of 0.1%.
The revenue from the Diou Home Ceramic Wall and Floor Tile segment was mainly generated by Oceano’s operations. During the reporting period, the total revenue from the Diou Home Ceramic Wall and Floor Tile segment was nearly 5 billion yuan, accounting for 88.44% of the total operating income, a year-on-year increase of 0.36%; The annual sales volume of industrial ceramic tiles is 128 million square meters, a year-on-year decrease of 0.49%, and the inventory is 19.2 million square meters, a year-on-year increase of 23.03%.
The report also announced the operating income of the ceramic wall and floor tile sector in various regions, which were: 2 billion yuan in East China, 1.2 billion yuan in South China, 840 million yuan in central China, and 790 million yuan in southwest China.
The report stated that in 2020, based on the challenges brought by market structure and industry structure adjustment, Diou Home Furnishing Ceramics Division (Oshennuo) adjusted its strategy in a timely manner and adopted firm and effective response measures to further enhance profitability.
(1) Use brand influence and manufacturer empowerment to accelerate outlet expansion: create more core strategic customers, more benchmarking effects, and quickly cover blank outlets; and continue to expand new retail smart stores to lead the market. As of December 31, 2020, there were more than 1,100 Oceano ceramic tile dealers and more than 4,000 terminal stores.
(2) On the basis of continuing to maintain the growth in cooperation share with existing customers such as Country Garden, Vanke, and Evergrande, we will continue to deepen the cooperation with new real estate developer customers.
(3) Relying on the first-mover advantage of the self-operated engineering supply chain, we will increase our efforts to deploy all channels and continue to expand our market share: we will continue to subdivide channels and deeply penetrate markets such as home decoration, decoration, dealer engineering, municipal administration, and commercial connections. ; All categories are "coordinated and advanced", including artificial stone, functional auxiliary materials, experimental benches, rock slabs and other products to help expand market share. Control comprehensive operating costs and improve profitability: comprehensively improve organizational operating efficiency, improve input-output ratio, maximize unit efficiency, and achieve profitability goals.
So far, the 2020 annual reports of the four listed companies in the ceramic industry have been released (the 2020 financial reports of Yuexin Health and Dongpeng Holdings can be viewed here), Oceano, Dongpeng, Mona Lisa, and Smic 2020 Annual performance has increased to varying degrees. Under the strong impact of the new crown epidemic, it is not easy for these companies to achieve such performance in 2020.
At present, market competition is becoming increasingly fierce and industry concentration is increasing. Analysts believe that leading companies are expected to continue to benefit and continue to grow.
