Break through adversity, seek new ideas and changes, and lead the high-quality development of the industry - Gold Mantis: Focus on building core competitiveness and achieve breakthrough development in adversity

According to the 2023 half-year financial report released by Gold Mantis recently, new orders signed in the second quarter were 6.032 billion yuan, an increase of 36.62% over the same period of the previous year; Operating income was 5.481 billion yuan, an increase of 22.48% from the previous month; Net profit was RMB336 million, up 24.9% quarter-on-quarter, and operating net cash flow in the first half of the year increased 12.5% year-on-year. At the same time, Gold Mantis' operating income in 2022 also reached 21.8 billion yuan, with a net profit of 1.273 billion yuan, a year-on-year increase of 125.71%.

Among the many listed companies in the building decoration industry, the business performance of Gold Mantis is particularly prominent and eye-catching, and the dimensions of new orders, operating income, net profit, cash flow and other dimensions have achieved comprehensive development, maintaining a large advantage for a long time compared with other peer enterprises, fully demonstrating the strong competitiveness and development resilience of China's leading architectural decoration enterprises.

Since 2021, affected by the national real estate regulation and debt crisis of some leading real estate enterprises, coupled with the test brought by the prevention and control of the new crown epidemic to the national economic development in three years, the building decoration industry as a real estate-related industrial chain has also suffered a huge impact and multiple tests, and even some enterprises have faced a difficult dilemma.

However, we can see from the financial report data that Gold Mantis has shown a benign and stable sustainable development trend, and has completely got rid of the impact and impact of real estate industry regulation and some real estate enterprises thunderstorm, and achieved breakthrough development in adversity. On the one hand, Gold Mantis' abundant orders in hand and month-on-month increase in operating income indicate that it has achieved breakthroughs in market, customer and business development, and has provided strong support for the sustainable development of the enterprise; On the other hand, Gold Mantis's operating cash flow is also very healthy, with abundant funds and good turnover, which can fully meet the capital needs of daily operation production and project delivery.

The reason why Gold Mantis can achieve breakthrough development under the industry against the trend and maintain the good trend of long-term and stable operation is due to the strategic direction and landing of "promoting high-quality and sustainable development", and has achieved self-breakthroughs in the three key dimensions of market, competitiveness and management efficiency.

1. Focus on key markets and customers and promote the optimization and upgrading of business structure

At a time when the building decoration industry has changed from an incremental market to a stock market, Gold Mantis has significantly increased its new orders, largely due to the timely transformation of market and customer development ideas and the optimization and upgrading of business structure.

On the one hand, Gold Mantis continues to promote the in-depth cultivation of the territorial market, fully integrates the marketing, design and construction resources in each territory, realizes overall planning and mutual coordination, and forms a joint force to develop the market, especially in the Greater Bay Area and other regions with rapid and better economic development, has successively established regional headquarters companies, concentrated advantageous resources, and initially formed a market influence in the region.

On the other hand, Gold Mantis firmly grasps the dividend opportunities brought by national policies such as the Belt and Road, the dual carbon strategy, the housing of talents, the real economy, and rural revitalization, and vigorously takes the initiative to develop enterprise customers with growth value in new infrastructure, new energy, high-end manufacturing, artificial intelligence, biopharmaceuticals and other industries, and has established long-term and in-depth business cooperation with a number of key customers such as Huawei, Alibaba, ByteDance, JD.com, Xiaomi, Sungrow, Geely Automobile, Weichai Power, Hengrui Pharmaceutical, and Mindray Medical.

In addition to the traditional decoration business, Gold Mantis continues to make efforts in the fields of EPC general contracting, urban renewal, prefabrication, medical purification and other fields, and further increases business development by using the resources of the whole industry chain and multi-professional management to form a new growth point that promotes the sustainable development of enterprises. Taking the EPC general contracting project as an example, the output value undertaken by Gold Mantis will exceed 10 billion yuan in 2021-2022. In addition, in the medical purification sector, Gold Mantis has obtained the qualification of special equipment industrial pipeline (GC2) and the business license of medical equipment, and has successively won the bid for major projects such as Zhuhai Kikena Electronic Atomization Technology and Equipment Clean Workshop, Ningbo Huancaixing Technology Clean Workshop, etc.

Second, aim at customer needs and pain points, and strive to build the competitive advantage of enterprises

The logic behind the contrarian growth of business data is the significant improvement of Gold Mantis' competitive advantage, always adhere to customer-centric, aim at customer needs and pain points, adhere to long-term ism, and make high-quality products and services the reason why customers choose Gold Mantis with an attitude of excellence.

In terms of comprehensive design capabilities, Gold Mantis has the world's largest interior designer team of more than 4,000 people, while having scale advantages, it strives to create professional advantages in the field of subdivided design, and has industry-leading design level in high-end hotels, commercial space, office space, clean medical care, cultural performances, religious cultural tourism and other fields, and its subsidiary HBA is the world's first brand of hotel interior design. In the "TOP 100 GIANTS Global Design Top 100 List", Gold Mantis was rated as the fourth in the world, the first in the Asia-Pacific region and the first in international competitiveness, demonstrating its strong design strength.

In order to meet the design needs of EPC projects, Gold Mantis has implemented the organizational model of the design compound, and at the same time realized the integration of multi-professional design resources such as architecture, interior, curtain wall, landscape, soft decoration, intelligence, electromechanical, etc., to provide customers with efficient comprehensive design services for the whole industry chain and greatly enhance the competitiveness of comprehensive design. In addition, Gold Mantis also continues to increase design and research and development efforts, and constantly introduces new materials and new processes to provide customers with more cost-effective products.

In terms of full-professional construction capabilities, Gold Mantis has a project construction management team of more than 5,000 people, based on the management advantages of multi-professional overall coordination including interior decoration, building curtain wall, garden landscape, soft furnishings, clean space, intelligent system, etc., and the service ability of the whole industry chain construction, it has established a professional EPC general contracting management team to provide customers with one-stop, all-round services, solve the problems of sub-professional bidding trouble, multi-professional coordination, cross-construction management, etc., and has successively built Shanghai Giant Science and Technology Park, Nanjing Garden Expo Park, Jingdezhen Old Town Renovation, Shandong Weichai New Technology Office R&D Center and many other landmark projects.

In terms of supply chain management, Gold Mantis has established a special material company to vigorously integrate the ability to purchase stone, wood veneer, metal and other materials directly from the source, reduce the intermediate links of procurement, further reduce procurement costs, and ensure material quality. It is worth noting that for the management of deep-processed materials, Gold Mantis innovatively draws on the management experience of high-tech and high-end manufacturing enterprises, directly manages the production line at the end of the factory, and realizes the quality control, capacity early warning and resource coordination of deep-processed products to ensure stable quality and on-schedule production.

In terms of labor resources, in order to cope with the increasing shortage of construction workers and the continuous rise in costs, Gold Mantis has vigorously implemented special teams based on the labor resources accumulated over the years, and the special teams will specialize and refine in various professional jobs, which is expected to exceed 10,000 by the end of 2023. At the same time, Gold Mantis actively responds to the national "14th Five-Year Plan" construction industry development plan, gradually builds an industrialized worker team, implements corporatization and professional management of construction workers, realizes the integration of worker resources and technological upgrading, and solves social problems such as large mobility, lack of social welfare security, and obstruction of career development channels among workers.

3. Improve the management system and tools to improve the efficiency of enterprise operation and management

Management is the foundation of enterprise survival. Gold Mantis continues to improve the platform management system with service, supervision and early warning as its responsibilities, realizes the transformation of the platform management mode from control to empowerment, comprehensively improves the company's management efficiency, and further clarifies the management responsibilities of the company's internal front office, middle office and back office, so as to achieve efficient management of each performing its own duties and complementing each other, and create a management ecosystem with clear responsibilities, reasonable division of labor, and efficient collaboration.

Gold Mantis combines the characteristics of the building decoration industry and makes full use of digital management methods to provide efficient and accurate management decisions for enterprise management. In particular, the independently built and upgraded project management command system can serve more than 1,000 projects under construction at the same time, ensuring the service, supervision and early warning of the whole process of the project. At present, after the upgrade of version 2.0, RFID radio frequency identification, on-site monitoring, intelligent identification and other technologies can be used to realize data analysis, risk early warning and resource coordination in terms of factory capacity, material arrival, labor consumption, etc., so as to ensure the management goal of delivering projects to customers with high quality and on schedule.

In addition, under the background of the downward pressure of the domestic economy and the year-on-year decline in real estate investment, the profit margins of building decoration projects have been further compressed, and the price competition among peer companies has become increasingly fierce. To this end, Gold Mantis vigorously implements a series of measures to reduce costs and increase efficiency, including simplifying internal processes, implementing direct procurement of raw materials, implementing deep processing single packages, building special teams, strictly controlling material losses, advocating ingenuity and excellence, etc., focusing on building cost competitiveness, improving bid winning capabilities, and having the ability to serve customers with different formats, different budgets and different requirements.

The adversity of industry development is the "touchstone" of excellent enterprises, but also the "grinding stone". As a leading company in China's building decoration industry, Gold Mantis has continued the good trend of steady operation for many years, comprehensively eliminated external impacts, actively led industry changes, and took the lead in exploring new development models. It is believed that with its strong core competitiveness, Gold Mantis has stood at the starting point of the next high-quality growth stage, and will lead the entire building decoration industry to achieve high-quality development with a new attitude, strong resilience and forward-looking strategy!