Overview of the ceramic industry and focus on home furnishing hot spots.
Hello everyone! Today is September 19, 2022. Let’s take a look at the hot topics that Zhongtaojun focuses on in this issue of "Zhongtao Daily·Weekly Comments".
Ranked fourth among the top ten involution industries in 2022
The degree of ceramic involution is 75%
On September 10, "Financial Eleven" selected the ten industries with the highest "involution" from various industries through calculations. By definition, the "degree of involution" will range from 0-100%. The closer it is to 100%, the higher the degree of involution in the industry. The degree of involution is 0%, which means that the operating profits of all listed companies in the industry are positive, which indicates that the industry is relatively prosperous. According to calculations, ceramics ranks fourth on the involution list, with an involution degree of 75%. It is reported that there are 8 sample companies in the ceramic industry. In the first half of 2022, 6 companies had negative operating profits, and the "involution degree" was 75% (6/8 = 75%). In the first half of 2021, 2 of these 8 companies had negative operating profits, and their "involution degree" was 25%. Compared with the same period in 2021, the industry's "involution" has tripled. In the short term, the ceramic industry will still be under greater operating pressure. The concentration of China's ceramic industry is low. As environmental protection policies increase, manufacturing costs rise, investment thresholds upgrade and other factors, the industry concentration is expected to increase.
Source: Finance Eleven
People in every industry will say that their own industry is the most difficult. Do ceramic people think that the "brick-moving industry" is the "big brother"?
Foshan Standard Product Catalog (Third Batch) Announced
The products of 14 Taowei companies were selected
On September 7, Foshan City Market Supervision and AdministrationThe Administration issued the "Foshan Standard Product Catalog (Third Batch)". After comprehensive evaluation, a total of 102 products from 74 companies were identified as Foshan standard products. Among them, the ceramic ware industry includes Ouwen Lai, Nengqiang, Qianghui, Xinhenglong, Zhang Brothers (Jinsi Yuma), Tete, Keda, Henlitai, Hope, Meijia, Sanshui Yingjie Precision Machinery (Xinjingtai ), Wrigley Home Furnishings, Anhua, Faenza and other 14 companies are listed, involving 17 products, involving large ceramic slabs, dry-pressed porcelain tiles, automatic hydraulic presses for ceramic tiles (boards), and automatic inkjet machines for ceramic tiles (boards) , smart toilets and other product categories.
Source: Foshan Market Supervision and Administration Bureau
This is the third time Foshan has announced the "Foshan Standard Product Catalog", and more and more ceramic companies we are familiar with have been selected into it. Have those ceramic companies that have not been selected yet not applied yet, or do they simply not want to participate?
Five ceramic companies "accrued" 3.48 billion in bad debts< /p>
According to statistics from public announcements, it was found that since last year, many ceramic companies have made higher bad debt provisions for accounts receivable, among which 5 ceramic companies have made high provisions for bad debts for many real estate companies. An impairment loss of 3.48 billion was made. In addition to higher accounts receivable, ceramic companies are also enduring the pain of declining gross profit margins. The rising costs of raw materials and energy have had a greater impact on the operating costs of ceramic companies. The gross profit margins of many ceramic companies have declined year after year. The gross profit margins of some ceramic companies in the first half of this year have fallen below 20%. Some people even say that ceramics has become the least profitable industry in home building materials.
Source: Taocheng Daily
I believe that most of the 3.48 billion yuan "accrued" by these ceramic companies are related to real estate companies. For the vast majority of ceramic enterprises, bearing such a huge amount of bad debts can really be said to be like "having worked hard for decades and returning to before liberation overnight."
In this situation, those ceramic enterprises that once tasted the benefits in the field of real estate decoration projects and now suffer the hardships should be so regretful that their intestines are green. However, Zhongtaojun believes that if time can be turned back, or the real estate situation has changedIf things get better, its decision-makers will still be unable to resist the temptation of large-scale development and invest in real estate.
Another 10 ceramic tile lines in the Pan-Gaoan production area have been technically upgraded to lithium batteries
The conversion of pan-high-security ceramic tile production capacity to lithium batteries is making waves again, and it seems that there are signs that it is difficult to "brake". Relevant official documents revealed that recently, 10 lithium slag blank production lines with technological capacity improvements have once again emerged in the production area. According to analysis, among the 10 production lines planned to be withdrawn, in addition to the previously reported new line of Yuan Xinyang Ceramics in Taiyang Town (a total of 2 lines) and the newly added 2 lines of Yifeng Jinfo Ceramics (a total of 3 lines), the others They are all the latest ceramic companies that have just been exposed. These include the technical transformation of a 300,000-ton lithium slag blank production line of Gao'an Huanbao Ceramics, the technical transformation of two wood grain brick production lines of a certain company to a 196,000-ton lithium slag blank production, and the technical transformation of a certain company's production of 400*800 medium plate and 800 full body , 2 lithium slag blank production lines with a capacity of 600*1200 specifications were technically upgraded to 596,000 tons, and 2 lithium slag blank production lines of a certain company were technically upgraded to an annual output of 200,000 tons. The above seven production capacities all come from Gaoan Ceramics Park. However, although the latest technical renovation project for the 10 ceramic tile production lines has been approved, there is no exact timetable for when the technical renovation will be completed.
Source: Ceramic Industry News
Ceramic companies switching to lithium battery production is naturally a good thing for related industries such as new energy vehicles and ceramic companies that have already switched to lithium battery production and benefited from it, but what about the construction and ceramics industry? I'm afraid it made many ceramic people feel panicked, right?
Foshan rewarded these ceramic companies with nearly 140 million yuan
On September 13, the results of the 2022 Foshan Digital Intelligent Demonstration Factory Review were announced, and 6 first-level digital intelligent demonstration factories and second-level digital intelligent demonstration factories were selected. There are 10 factories and 10 third-level digital intelligent demonstration factories. Among them, 5 are ceramic sanitary ware and related supporting companies, including: Mona Lisa Group Co., Ltd. was rated as a first-class digital intelligent demonstration factory and will receive a bonus of 20 million; Foshan Kohler Co., Ltd., Foshan HengliTai Machinery Co., Ltd. was rated as a second-level digital intelligent demonstration factory and will receive bonuses of 15 million yuan and 13 million yuan respectively; Foshan Sanshui Xinmingzhu Building Ceramics Industry Co., Ltd. and Guangdong Jinyitao Ceramics Group Co., Ltd. were rated as third-level Digital and intelligent demonstration factories will each receive a bonus of 10 million yuan.
Source: Foshan Industry and Information Technology Bureau
On September 14, the list of proposed awards and subsidies for the 2022 Foshan Manufacturing Digital Intelligent Transformation Award and Subsidy Project was announced. After the enterprise application, preliminary review in each district, and entrusting a third-party organization to organize expert review and other procedures, 911 companies are planned to be awarded and subsidized, with a total award and subsidy of nearly 600 million yuan. Among them, there are 33 ceramic construction, sanitary ware and related supporting enterprises, with a total award-winning subsidy fund of 67.5148 million yuan, with a maximum of 25.4605 million yuan.
Source: Foshan Industry and Information Technology Bureau
Five ceramic enterprises that were rated as digital and intelligent demonstration factories were awarded 68 million yuan, and 33 ceramic enterprises that were recognized as digital and intelligent transformation projects were awarded nearly 67.5148 million yuan, which fully reflects Foshan's commitment to the digitalization of ceramic enterprises. , the strength of intelligent transformation support.
Digitalization and intelligence can not only greatly improve the productivity and operating efficiency of enterprises, but also help enterprises reduce pollution, carbon dioxide and green development. As my country's requirements for low-carbon and environmental protection in the "two high" industries become increasingly stringent, the home building materials industry is being reshaped by digitalization and intelligence. Ceramics companies can only have a future by taking the path of digitalization and intelligence. Those ceramic companies that have neither the strength nor the will to transform to digitalization and intelligence, nor meet low-carbon and environmental protection requirements, will most likely be eliminated from the market.
Wrigley Home IPO priced at 12.68 yuan per share
Plans to raise 1.225 billion yuan
On the evening of September 14, Wrigley Home Furnishing Group Co., Ltd. released the preliminary inquiry results of its initial public offering of shares and an announcement on the postponement of the issuance. According to the announcement, the issuance price was determined to be 12.68 yuan/share through preliminary inquiry., the number of shares issued was 96,609,517 shares, accounting for 10% of the total share capital after this issuance. If this issuance is successful, the issuer is expected to raise total funds of 1.225 billion yuan. After deducting issuance expenses of 69.1358 million yuan (excluding value-added tax), the net amount of funds raised is expected to be 1.156 billion yuan. It is reported that online and offline subscriptions originally scheduled for September 16, 2022 will be postponed to October 14, 2022.
Source: Leju Finance
It is not easy for ceramic companies to go public, and it is not easy for Wrigley Home Furnishings to go public. Although there are many twists and turns on the road to listing, Wrigley Home Furnishings is finally getting closer and closer to the day of ringing the bell!
Energy costs triple in Italy
Prices of some SACMI products increased by 30%
Energy costs are a global topic. Compared with the rising manufacturing costs of China's ceramic industry, Italy, a ceramic tile manufacturing powerhouse, is experiencing an "energy crisis." Recently, according to CCTV financial news, as the European energy crisis continues to intensify, the possible natural gas shortage this winter will put many Italian manufacturing companies into operating difficulties. Mongardi, chairman of Sacmi Group, a large Italian machinery and equipment company, said that rising energy prices have caused some companies to suspend production and reduced the competitiveness of European manufacturing. Energy costs in 2022 are already twice as high as last year, and are expected to rise to three times as high as in 2021 by 2023. Obviously this will have an impact on their production, and the increase in costs may not necessarily be transferred to the market price, because it is difficult to Raise the price above a certain limit. Mongardi said the price of some of the company's products has increased by 30% due to natural gas prices.
Source: Ceramic Industry News
High-end brands have strong premium capabilities and still have room for maneuver in the face of rising costs. However, what should brands that are unable to command a premium, such as a considerable number of domestic waist and tail brands, do when faced with this situation? Suspension of production may be the best option.
Major changes in senior executives of pan-home furnishing companies from January to August
71% of companies’ performance declined
From January to August 2022, among the 98 listed home furnishing companies, a total of 21 companies had news of executive personnel changes, involving stores, customized home furnishings, home decoration, soft furniture, Ceramic bathroom, flooring, finished home furnishings, building materials and other fields. Announcements of executive resignations include leading companies in various fields, including Red Star Macalline, Easyhome, Dongpeng Holdings, Sophia, Gold Medal Kitchen Cabinets, Beijing New Construction Building Materials, Gold Mantis, Dongyi Risheng, Mark Home and other pan-home furnishing companies. It is worth noting that among the companies with changes in senior management personnel, 71% are companies with both revenue and profits declining in 2022H1, and only 2 companies (accounting for less than 10%) are companies with both revenue and profits increasing in 2022H1.
Source: New Paradigm of Home
Major changes in senior management of pan-home furnishing companies are often closely related to the general decline in performance, and general decline in performance often triggers major changes in senior management.
Whether it is in the construction and ceramics industry or in other areas of the general home furnishing industry, it is probably not a good thing for executives to become frequently involved. But having said that, in the overly closed ceramics industry, it is not necessarily a good thing for the senior management team to be too stable. It can easily create a bad atmosphere of sitting in a well and watching the sky and boiling frogs in warm water.
Debt List of 90 Listed Home Building Materials Companies
Red Star Macalline ranked first with 76.3 billion
According to statistics, the total debt of 90 listed building materials and home furnishing companies in the first half of 2022 was 527.409 billion yuan, with an average debt of 5.86 billion yuan. There are 22 building materials and home furnishing companies that have reached average debt, accounting for 24.4%. The remaining 68 building materials and home furnishing companies are all below average debt. Among them, home furnishing store giant Red Star Macalline tops the list with a total debt of 76.321 billion yuan; Easyhome and China Lesso rank second and third on the list with 34.376 billion yuan and 31.369 billion yuan respectively. Zhejiang Meida and Fillinger are ranked at the bottom of this statistical table with total liabilities of 360 million yuan and 339 million yuan respectively. In addition, the assets of Quanzhu Co., Ltd., Weiye Co., Ltd., Sankeshu Co., Ltd., Dongyi Risheng Co., Ltd. and Decai Co., Ltd.The debt ratios all exceed 80%. It is worth noting that, except for 3keskes, the other seven companies are in the construction and decoration industry.
Source: 77 Degrees
Looking at this list, you can find that the home furnishing store giant Macalline has become the "big brother" with a debt of 76.321 billion yuan, but its debt ratio is not very high, only 56.98%; and the ceramic giant Mona Lisa The total liabilities are only 7.631 billion yuan, and the debt ratio is close to 70%. The liabilities of Diou Home Furnishing and Dongpeng Holdings are 5.763 billion yuan and 5.755 billion yuan respectively, and the debt ratios are 58.13% and 44.78% respectively.
When the debt ratio is equivalent, the greater the total liabilities, the greater the scale of the enterprise, especially the scale of assets. It can be seen from the above list that although the building ceramics industry is not small, the scale of leading ceramics companies is relatively small compared to other home building materials companies. This shows that the market concentration of the building ceramics industry still has a lot of room for improvement.
Suning.com’s 1 billion subsidy activates Mid-Autumn Festival “home consumption”
In order to meet the rapid release of consumer demand for home appliances and home decoration since the third quarter, Suning.com continued to launch the "Autumn Home Appliances and Home Improvement Festival" event after the "818" event, distributing 10 100 million yuan decoration subsidy, the activity lasts until September 12, covering the Mid-Autumn Festival holiday to meet consumers' home purchase needs. Suning.com will join hands with more than a thousand upstream and downstream partners to form the "Decoration Family Bucket Alliance" to provide a four-in-one "Family Bucket" service of "home appliances, home furnishings, home decoration, and home services" and distribute 10,000 "Family Decoration Buckets" nationwide. "Bucket" gift packs, 100,000 free service quotas, and continued efforts to trade in old ones for new ones and bring home appliances to the countryside to help consumers "buy a home in one place."
Source: Dazhong.com
Third postIn providing decoration subsidies, and it is still 1 billion yuan, Suning.com is quite generous. But I don’t know if ceramic tiles are included in the 1 billion yuan decoration subsidy.
