The strength is divided into "two factions", and Min Hua and Gu Jialing are at the forefront with over 10 billion yuan

As a branch of the manufacturing industry, China's upholstered furniture started in the 1980s.
After 30 to 40 years of development, it has now formed a good situation
.

At present, China has become a big country in the production, export and consumption of upholstered furniture
.
According to data from the Bureau of Statistics and the General Administration of Customs, the retail sales of furniture above designated size in China in 2021 will be 166.
68 billion yuan, an increase of 14.
5% over the same period in 2020; Year-on-year growth of 26.
40%
.

However, the furniture industry is a labor-intensive industry with low technical barriers, resulting in a large number of enterprises in China's furniture industry, the industry is relatively scattered, and the industry concentration is low
.
According to the data of the National Bureau of Statistics, in 2021, the operating income of enterprises above designated size in China's furniture manufacturing industry will be 800.
46 billion yuan, and the number of enterprises above designated size in the furniture industry will reach 6,657
.

From the perspective of several companies that have been listed, revenue in 2021 will achieve double-digit growth
.
Among them, Gujia Home Furnishing ranked first with a year-on-year growth of 44.
81%
.

In the last year, rising raw material prices have increased the cost of the company, resulting in a decline in gross profit margins
.
In 2021, the gross profit margins of Gujia Home Furnishing, Xilinmen and Menglily will decrease by 18.
02%, 5.
21% and 16.
06% respectively
.

The data released by Manhua Holdings is from March 2021 to March 2022 (hereinafter referred to as "Fiscal Year 2022")
.

Compared with the decline in gross profit margin, Gujia Home Furnishing, Xilinmen and Menglily have more cash in their hands
.
In 2021, the monetary funds of Gujia Home Furnishing, Xilinmen and Menglily will be 3.
198 billion yuan, 1.
732 billion yuan and 994 million yuan respectively
.
However, Manhua Holdings has a relatively obvious funding gap.
In fiscal 2022, its cash and cash equivalents are 2.
437 billion yuan, bank loans are 3.
738 billion yuan, and the funding gap is about 1.
301 billion yuan
.

Revenue collectively rose, with Min Hua and Gu Jia leading over 10 billion

In 2021, all four companies will achieve double-digit revenue growth
.
Among them, in fiscal year 2022, Manhua Holdings ranked first with 18.
788 billion yuan
.
It is followed by Gujia Home Furnishing, with revenue of 18.
342 billion yuan in 2021
.
Menglily and Xilinmen are comparable in strength, ranking third and fourth with 8.
139 billion yuan and 7.
772 billion yuan
.

In terms of growth rate, Gujia Home Furnishing ranks first with a growth rate of 44.
81%, Manhua Holdings' revenue in fiscal year 2022 will increase by 28.
55% year-on-year, and the revenue of Xilinmen and Menglily will increase by 38% year-on-year in 2021.
21%, 24.
64%
.

Not only revenue growth, but also net profit growth
.
In fiscal year 2022, Minhua Holdings achieved a net profit of 1.
998 billion yuan; Gujia Home Furnishing achieved a net profit of 1.
664 billion yuan, a year-on-year increase of 96.
87%; Xilinmen achieved a net profit of 559 million yuan, a year-on-year increase of 78.
29%
.

Among the four companies, Menglily is the only company whose net profit has declined
.
In 2021, Menglily's net profit will be -276 million yuan, a year-on-year decrease of 172.
78%
.
Regarding the decline in net profit, Meng Lily said that the company's raw material prices, labor costs and overseas transportation costs have all risen sharply, resulting in a decline in the company's product gross profit margin, which is one of the reasons affecting the current period's profit
.

In 2021, Menglily's gross profit margin will be 28.
47%, a year-on-year decrease of 16.
06%
.
The gross profit margins of Xilinmen and Gujia Home were 32% and 28.
87%, respectively, down 5.
21% and 18.
02% year-on-year
.
In fiscal 2022, the gross profit margin of Man Wah Holdings was 36.
71%, a year-on-year increase of 1.
74%
.

Last year, due to the impact of rising raw material prices, the company's operating costs increased and the room for gross profit margins was compressed
.

In 2021, the operating costs of Gujia Home Furnishing, Xilinmen, and Menglily will be 13.
048 billion yuan, 5.
285 billion yuan, and 5.
822 billion yuan, up 47.
09%, 41.
88%, and 34.
91% year-on-year, respectively
.
The operating cost growth rate of the three companies is higher than the revenue growth rate
.

It is understood that the raw materials of upholstered furniture enterprises mainly include foam materials, sponges, non-woven fabrics, fabrics, leather, steel wires,
etc.
In 2021, the raw materials of Gujia Home Furnishings will be 7.
682 billion yuan, a year-on-year increase of 49.
59%; the raw materials of Xilinmen will be 4.
257 billion yuan, a year-on-year increase of 50.
17%; the direct materials of Menglily will be 2.
021 billion yuan, A year-on-year decrease of 12.
54%
.
However, Menglily's purchased products have increased rapidly.
In 2021, Menglily's purchased products will be 1.
76 billion yuan, a year-on-year increase of 112.
64%
.

On the other hand, the expenses of the three companies are also increasing
.
From the perspective of proportion, the sales expenses of the three companies are the highest proportion
.
In 2021, the sales expenses of Gujia Home Furnishing, Xilinmen, and Menglily will be 2.
703 billion yuan, 1.
194 billion yuan, and 1.
314 billion yuan, respectively, up 47.
71%, 31.
59%, and 49.
00% year-on-year, respectively.

.

Manhua's cash is under pressure, and the funding gap is as high as 1.
3 billion

Not only is the profit double harvest, but the cash in the hands of the enterprise is relatively abundant
.

In 2021, the monetary capital of Gujia Home Furnishings will be 3.
198 billion yuan, a year-on-year increase of 42.
70%, and the monetary capital of Xilinmen will be 1.
732 billion yuan, a year-on-year increase of 19.
2%
.

In addition, in 2021, the short-term loans of Gujia Home Furnishing and Xilinmen will be 469 million yuan and 1.
243 billion yuan, an increase of 100.
95% and 44.
78% year-on-year
.

Dream Lily's cash is less than in 2020, and there is a certain funding gap
.
In 2021, Menglily's monetary capital will be 994 million yuan, short-term loans will be 1.
61 billion yuan, and the funding gap will be about 616 million yuan
.

In contrast, the financial pressure of Manhua Holdings is more obvious
.
In fiscal 2022, Manhua Holdings’ cash and cash equivalents were 2.
437 billion yuan, bank loans were 3.
738 billion yuan, and the funding gap was about 1.
301 billion yuan
.

In addition, with the increase in short-term borrowings, the debt ratios of the four companies also increased
.
In 2021, Menglily will have the highest debt ratio at 67.
45%, and in 2020 it will be 47.
80%
.
The debt ratio of Manhua Holdings in fiscal year 2022 was 37.
88, compared with 34.
60% in the same period last year.
The debt ratios of Gujia Home Furnishing and Xilinmen in 2021 were 47.
28% and 59.
27%, respectively, and 45.
52 in 2020.
%, 58.
06%
.

While cash is plentiful, the company's operating cash flow is declining
.
In 2021, the operating cash flow of Gujia Home Furnishing, Xilinmen, and Menglily will be 2.
041 billion yuan, 704 million yuan, and 68 million yuan, respectively, down 6.
41%, 4.
92%, and 88.
34% year-on-year, respectively.
%
.

The decline in operating cash flow may be related to excessive accounts receivable
.
The data shows that the accounts receivable of the four companies all exceeded 1 billion yuan
.
Among them, the accounts receivable of Manhua Holdings contains notes receivable, which is 1.
936 billion yuan in fiscal year 2022, a year-on-year increase of 33.
55%, making it the highest
.
In 2021, the accounts receivable of Gujia Home Furnishing will be 1.
697 billion yuan, a year-on-year increase of 53.
20%.
The accounts receivable of Xilinmen and Menglily will be 1.
206 billion yuan and 1.
125 billion yuan respectively, a year-on-year increase of 61.
20%.
77%, 12.
84%
.