Gold Cabinet Conference Call

Secretary of the Board: Mr. Chen

1. Before and after the Spring Festival, the company's marketing measures and marketing feedback:

The first quarter was affected by two factors. First, the market is picking up, orders are rising to varying degrees; second, this year's New Year is relatively late, and the shipment period of most units is concentrated in mid-December to early January, resulting in better data from each company. We retailed 20% of cabinets in January, 200% of engineering, and 102% of wardrobes.

2, last year 315 the entire industry did a lot of marketing measures, this year our marketing measures:

There are two points. First, two nationwide live broadcasts were done in January, and the whole order in January was very good. However, online orders have a digestion period, because the online deposit is relatively small, 100 yuan, customers also need to go offline to see. However, the overall online and offline conversion is still good compared with last year. Second, the activities of 315 are being done intensively.

3. This year's key direction of force, and the method of force:

Cabinet retail is the original main business, affected by the market, the growth of these two years is relatively slow, next year's growth is not expected to be particularly high, expected 15-20%. In 2021, it is expected that wardrobe retail yoy 60%, engineering yoy 50%-60%, overseas yoy more than 100% (this year is expected to be 100 million, next year 200 million). In 2020, cabinet retail is basically flat, wardrobe yoy 50%+, engineering yoy 76%+.

4, the entire industry continues to change channels, especially in the past two years of formal dress changes, the company's channel situation:

Decoration: The logic we originally envisioned was to empower the small B end, and after the small B service was completed, it would then serve the terminal customers, so the two years of the whole package did not do too much. We are also paying attention to the model of our competitors to do quasi-warehousing to expand the whole packaging channel. We may also have a similar model to transform and go in the direction of Europe. It is still in the learning stage, and everyone has been groping for this path for the first two years.

Expansion model: regular channels and overseas channels. Last year, it bought a stake in a company in Southeast Asia and also took land in the United States. Overseas will be our main driving factor in the next 2-3 years.

5. Our development strategy in Southeast Asia, the United States and Australia:

Southeast Asia: May cooperate with listed companies in Malaysia. Indonesia and the Philippines will set up offices, and there will be initial developments this year.

Australia: engineering-oriented, as well as some white-harvested products

USA: White Mining + Retail.

6. In July 2020, funds were raised as an expansion of bulk wardrobe cabinets:

Last year's fixed increase project is part of our original bond transfer project, Xiamen's fixed increase and bond transfer project is the same project, this year should be able to release a part, the factory building of the bond transfer project can basically be released this year, last September there was a plant successively put into use. Our plant will first get the civil project in place, and then according to the progress of the project, 2-3 months in advance of the equipment. It turns out that we are all imported equipment, the cycle is relatively long, now it is domestic and imported equipment to use together, now the function of domestic equipment is relatively close to imported equipment, the supply cycle is relatively short.

In May and June this year, the Sichuan base will be rebuilt.

7, 20 years of cabinet expansion and 21 years of planning:

The situation of cabinets in 20 years is not very optimistic, in the first half of last year, due to the impact of the epidemic, the opening of many places was delayed, and last year, the overall cabinet added 26 stores. The number of wardrobe reserves is relatively large, and about 200 have been opened. Most of the wooden doors are integrated in wardrobe stores, and there are 109 wooden door separate stores and fusion stores combined.

21 years: our investment center from the departmental level to the company level, this year we expect to open the number of cabinets 200+, wardrobes 300+, wooden doors as a whole 200-300.

8. The gross profit margin of the bulk business is lower than that of its peers, will it increase:

Competitors are directly operated + agents, we are all agents. We are already preparing a directly operated department and may be involved in projects with payment terms and gross margins that are not good enough. Many dealers only pick good projects to do.

9, the retail end of the product price band is higher than the peers, our positioning and the difference between peers:

The industry we live in is a fully competitive one. The overall board is an industrial product, which is more difficult to sell at a high price. Paint and solid wood are two kinds of money, which are semi-industrialized. For example, baking paint, there are now mechanical equipment, but if you add some labor on the mechanical equipment may be better polished, the high price includes a certain added value