The enterprise has grown to a mature stage. Raising funds and expanding the scale will enable the company to further develop. More than 10 home furnishing brands such as Red Star Macalline, Qumei Furniture, Op Lighting, and Guangzhou Holoca are collectively planning to wait in line on the main board for IPO .
The industry believes that the home furnishing industry is facing a new round of industrial cycle change. IPO is a win-win option. In addition to providing sufficient funds and market resources, the home furnishing industry not only needs a lot of capital, but also directly faces the terminal consumer market. The brand effect brought about is also valued by enterprises. Zhu Changling, chairman of the China Furniture Association, once said that there are not many companies listed in the home furnishing industry. After the listing, companies have to be transparent. Under the supervision of the China Securities Regulatory Commission and other regulatory authorities, they have embarked on the path of formal and modern enterprise development. Inside, the overall image of the company has also improved.
In fact, since 2011, the development rate of the entire home furnishing industry is slowing down. "Before that, there were many companies that maintained a growth rate of 30% to 50% every year. Today, home furnishing companies that can achieve growth of more than 30% are considered excellent." Zhong Haizhou, assistant to the chairman of the board of the Federal Furniture Group, said. Today, home furnishing enterprises above designated size have no special business breakthroughs, and the annual growth rate is basically consistent with the growth rate of China's GDP. Not only has the growth rate slowed down, but the gross profit margin of home furnishing companies has also been dragged down. Last year, the dynasty furniture gross profit margin fell from 29.2% to 9.7%. The company used the term "gross gross margin has greatly deteriorated" to describe its decline. Zhong Haizhou believes that, from the perspective of the financing environment and the development of the home furnishing industry, it is not the best time for home furnishing companies to go public.
In addition, among the home furnishing companies pre-disclosed by the IPO, it is a typical phenomenon that the family holdings of family companies are too high. The actual controllers of the companies are basically direct family relations. From the point of view of the actual controller's shareholding, it is basically maintained at more than 80% or 90%. The lack of voice of external shareholders has formed a congenital defect of corporate governance, which has also been criticized by many investors. Industry insiders said that due to the high concentration of equity, it is difficult to establish a supervision and restraint mechanism, and the two negative impacts of general family companies will be more prominent after listing. One is that the rate of return on assets is declining. The special ownership structure of family companies makes corporate decision-making more inclined to individual decisions with empiricism, which increases the error rate of decision-making and causes the decline in business performance. The other phenomenon is that dividends are less distributed. May not even pay dividends. Instead, it will extract funds from listed companies as much as possible to enjoy the benefits of equity financing.
On one side is a crazy IPO enthusiasm; on the other side is a bleak sales transcript. So, is it a blessing or a curse to wait for home companies to get together for an IPO?
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