DEHUA TB(002043)2025-04-25 09:06Financial Performance - In 2024, the company achieved revenue of CNY 9.189 billion, a year-on-year increase of 1.39% [4] - Net profit attributable to shareholders was CNY 585 million, a decline of 15.11% year-on-year; excluding goodwill impairment, net profit was CNY 716 million, an increase of 3.72% [4] - In Q1 2025, revenue was CNY 1.271 billion, a year-on-year decrease of 14.30%, while net profit was CNY 101 million, an increase of 14.22% [5] Business Segment Performance - In Q1 2025, the decorative materials segment generated revenue of CNY 1.068 billion, down 13.02% year-on-year; board materials revenue was CNY 588 million, down 22.53% [6] - The company’s main business, the Rabbit Baby division, achieved revenue of CNY 8.579 billion in 2024, an increase of 8.38% [4] Market Dynamics - Retail distribution channels accounted for 47% of sales in 2024, while furniture factories contributed 39%, and home decoration companies 10% [7] - The company established a rural channel operation center, resulting in a doubling of sales in rural areas in 2024 [7] Product Strategy - The company’s auxiliary materials business, including impregnated paper and edge banding strips, saw significant revenue and margin growth, stabilizing overall profit margins despite declining board business margins [8] - The company is focusing on a diversified product system to mitigate the impact of excess supply in the particle board market [9] Future Outlook - The Qingdao Yufeng Hantang company plans to stabilize its business in the real estate sector, which has been affected by declining sales and new construction starts [10] - The company aims to manage risks by ensuring new contracts have clear payment expectations and reasonable profit margins [10]