- Chief Business Intelligence
- Chief Business Intelligence
Introduction: The real estate downturn, and the upstream and downstream industries associated with it have also fallen into decline.
In recent years, the real estate industry has been galloping on the downhill road, and it can't stop the car at all, and the upstream and downstream industries related to real estate have also ushered in a performance winter.
This time, it was the turn of the downstream home improvement industry to usher in a "big reshuffle".
In the past few days, the Dongyi Risheng branch has made a lot of noise.
The store is empty
Branches in Beijing, Wuhan, Zhengzhou, Hefei, Ningbo, Wuxi and other places have successively appeared in rumors of "running away", and there are a lot of rights protection information on social media.
Hearing this news, many people's first reaction was: No, I really didn't expect the listed decoration company to be like this.
But it is not surprising that the real estate superimposed on the impact of the epidemic, many companies went bankrupt, and many of them ran away halfway through the decoration.
It was revealed that the suspension of work was in arrears of wages, and the stores in many places were thundered
On May 13, on the public social platform, many netizens posted that the Wuhan branch of Dongyi Risheng Decoration Group went to the empty building and was suspected of "running away".
Immediately afterwards, the news that the manager of Dongyi Risheng Zhengzhou Company ran away with the money came out, and it was said that a preferential activity was made in April, and a large amount of money was signed into the account, and the statistical amount of the customer rights protection group exceeded 8 million.
On the black cat complaint network, there are as many as 100 complaints from consumers about Dongyi Risheng Zhengzhou Company, saying that the home decoration has been suspended for many days, and the general manager of the branch "dodges".
After that, it was successively revealed on social platforms that Ningbo, Wuxi, Zhengzhou and other places had closed stores, and many directly-operated branches also owed employees wages, main material merchant money, and foreman money.
According to the Financial Associated Press, in the rights protection WeChat group - Dongyi Risheng (Wuxi) owners exchange group, there are more than 90 rights defenders, of which many have paid more than 300,000 yuan.
The "runaway" turmoil affects not only the owners, but also many suppliers who cooperate with Dongyi Risheng.
The shutdown is precisely because Dongyi Risheng did not pay the supplier, so the supplier did not deliver the goods, and under the chain effect, the owner's renovation progress was suspended.
The labor contractor of a branch of Dongyi Risheng said that he was owed millions of yuan in labor payments by Dongyi Risheng Branch, resulting in his inability to pay wages and continue to advance funds to promote the construction and achieve delivery.
It is reported that the financial power held by Dongyi Risheng direct branch is limited, whether it is income or expenditure, it is allocated by the head office to the branch for distribution and distribution, therefore, the head office does not act, and many Dongyi Risheng direct branches have basically lost their ability to perform the contract.
However, what makes people even more helpless and chilling is that during the period of fermentation of public opinion, no one from Dongyi Risheng headquarters and senior management came forward to respond to this matter, and no one came up with any solution.
As a leader in the home improvement industry, many people choose Dongyi Risheng because it is a listed company, with a guaranteed big brand and a stable capital chain.
Unexpectedly, the most guaranteed capital chain was broken, resulting in the inability to construct.
When these hundreds of owners are paying, it is estimated that they can't imagine that a well-known big brand and a well-known home improvement company can also do such a thing.
Now it's just a mess left behind for consumers, suppliers, renovation teams and workers who are struggling to defend their rights.
Reconciliation of the owner
A lot of this money is the hard-earned money of the people, and now there is no way to complain, and the attitude of the headquarters is also suspicious, and no one asks about the complaints.
The advertisement of "brand assured, service assured, delivery assured" on the door now seems so ironic.
"Home Improvement No. 1 Stock" continued to lose money and fell into a deep financial crisis
Dongyi Risheng was established as early as 1997 and is one of the earliest home improvement companies. The company's operation and decoration technology have 27 years of precipitation, the basic model has matured, and its promotion significance to the entire industry is also very huge.
Dongyi Risheng has participated in the construction of the process standard for the construction of the entire home improvement industry, so that many farmers who come to the city to work, as long as they implement and work in accordance with this process standard, can have a sustainable and stable income and earn money to go home.
Early consumers' demand for decoration is to seek scale and brand effect, as a leading home decoration enterprise Dongyi Risheng just met the needs of consumers, therefore, its customer base is almost all over the country, and the performance has been very good.
In 2012, the company won the first place in China's Top 100 Home Furnishing Entrepreneurs sponsored by China Building Decoration Association China Index Research Institute. In 2014, Dongyi Risheng entered the A-share capital market and successfully sat on the leading position in the home improvement industry.
In October 2020, Dongyi Risheng announced a high-profile cooperation with Xiaomi Technology, and the two sides obtained 139 million yuan of equity investment from Xiaomi Technology through equity transfer, and Xiaomi Technology also successfully became the second shareholder of Dongyi Risheng, working together to lay out a new experience of smart home life.
In 2021, Dongyi Risheng will reach the highest revenue since its listing, nearly 4.292 billion yuan, which can be said to be in the limelight for a while.
At this time, Dongyi Risheng is called a day in the sky, but if you think about it carefully, you can find that something is wrong, and there is actually a hidden crisis under the grand occasion.
The rise and fall of the home improvement industry has a strong correlation with real estate, and when the economy develops rapidly, the house sells hot, and the home improvement industry can also eat meat; After the epidemic, the property market ushered in a cold winter, and the home improvement industry was inevitably implicated.
It can be seen from the financial report that Dongyi Risheng has lost money every year in the past two years, with a loss of 751 million yuan in 2022 and a loss of 208 million yuan in 2023.
In the first quarter of 2024, it will lose 116 million yuan, and the cumulative loss in two years and three months will exceed 1 billion yuan.
The annual revenue has also dropped from more than 4 billion at the peak to more than 2 billion, and the asset-liability ratio has also risen.
From 53.35% in 2015 to 70.76% in 2019, this number will quickly climb to 90.98% in 2022, far exceeding the industry average of about 59%.
As of March 31, 2024, Dongyi Risheng's debt ratio has reached 97%.
In addition, as of the end of December 2023, Dongyi Risheng and its holding subsidiaries have accumulated 116 cases involving litigation and arbitration matters in 12 consecutive months, with a total amount of 59.2908 million yuan.
The quality of earnings is poor, the scale of assets and liabilities is high, and the capital chain of Dongyi Risheng is becoming more and more tense, and the once proud "first share of home improvement" and "more than 500,000 family choices" can no longer be boasted.
In addition, on social platforms, some employees who have worked in Dongyi Risheng came out to speak out, saying that there are problems with the company's internal governance and cultural system.
On social platforms, there are also many customers who have consumed in Dongyi Risheng said that since Dongyi Risheng was listed, the quality has become worse and worse.
"At that time, I chose Dongyi Risheng Company for decoration, because I felt that it was a listed company and should be able to be trusted, but the result was a big disappointment. My son's house was renovated by the company, and he only lived in it for three or four years, and there were problems such as leaking sewers in the living room, scraping the ceiling of the master bedroom, and so on. ”
As a benchmark in the industry, Dongyi Risheng is a veritable veteran enterprise, and it has also thundered, which can be said to be a big impact on the entire home improvement industry.
Originally, the decoration track is an industry with a very poor reputation in the whole social commodity transaction, but now this has made the distrust of the owners even more serious, and the home improvement industry is becoming more and more difficult to do.
In addition, as the upstream building materials and home furnishing enterprises of decoration enterprises, they also had to suffer losses.
Under the general environment, the breakthrough of the home improvement industry?
Under the background of low shocks in the real estate market and consumption downgrades, the home improvement industry is in a downward environment as a whole after the epidemic, and the home improvement industry can be said to be more and more difficult to do, especially for large companies, due to operating costs, it is even more difficult.
Moreover, today's consumers' demands for decoration are long ago different from before, and they are more in pursuit of personalized style in terms of quality requirements, even including the final delivery and landing of the entire project.
However, the larger the company, the less capable it is of the final delivery and implementation of the entire project.
Because the larger the company, its goal may be more to emphasize the achievement of performance, and the assessment of KPIs is more directed to turnover.
Therefore, when the project requires the final effect, the designer needs to bear a lot of performance pressure, however, in the case of both wanting, the designer can not take care of both.
So, this is a false proposition.
Generally speaking, local small and medium-sized decoration companies are a more stable choice, although they are not big brand chains, but at least small and beautiful companies can control the cost and cash flow is stable enough.
In addition, do not choose those companies that are too small and established for less than 5 years, because if they are established for a short time, the labor resources have not been accumulated and precipitated, and it is likely that they are random workers on the roadside, and the construction quality is not guaranteed.
In the absence of a prepayment system of capital supervision mechanism, the rights and interests of consumers are missing, in order not to damage the interests, we can pay a stage of fees after the completion of a stage, so that there are both guarantees and constraints.
If you really don't feel at any of the decoration companies on the market, you can also ask a little more friends, find a reliable project manager, and ask the price before starting each project, so as not to be too troublesome.
Finally, the truth about the turmoil of Dongyi Risheng's "running away" has not yet been fully disclosed, and it is still waiting for the final results of the headquarters, so everyone will look at it rationally first.
What do you think about this? Welcome to leave a message in the comment area to discuss and express your opinions or opinions, thank you.
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