Oupu steel net plans to invest 10 million yuan to build furniture platform

On November 18th, Guangdong Oupu Steel Net Logistics Co., Ltd. (hereinafter referred to as “Europe Steel”) announced that it will jointly invest 90 million yuan with its wholly-owned subsidiary and plans to build an Oupu furniture e-commerce platform to cultivate the company’s new The profit growth point.

In response, the securities analysts interviewed believe that this may be affected by the downturn in the steel industry, and that Shanghai Pudong Steel Group has extended the entire e-commerce platform's involvement in the furniture industry to seek another supportive business.

3 years plan to invest 90 million to build furniture O2O platform announcement shows that Oupu Steel Network plans with a wholly-owned subsidiary Shenzhen Qianhai Hongbo Supply Chain Logistics Co., Ltd. (hereinafter referred to as Qianhai Hongbo) to jointly invest in the construction of Oupu Furniture e-commerce Platform project, with a total investment of 90 million yuan. Among them, Oupu Steel Net invested 60 million yuan with its own funds, and Qianhai Hongbo, a subsidiary, invested 30 million yuan with its own funds.

It is reported that the project construction will be carried out in three years, and the entire Oupu furniture e-commerce platform project includes the B2C online shopping mall and the O2O online and online inspection system. Specifically, the project construction will focus on the construction of an online trading and procurement platform (Europe Furniture Online Mall), creating a platform that includes the Shanghai Oupu Furniture Mall, mobile APP system, financial pledge platform, and supply chain financial services. .

In fact, at the beginning of this year, Shanghai Oupu Steel Network, which was formally listed on the SME Board of Shenzhen Stock Exchange, has been the main supplier of steel e-commerce platform for this time involved in the field of furniture e-commerce. Oupu Steel Network believes that the current domestic traditional furniture industry concentration is low, in the post-financial crisis era, the growth point of the furniture industry is shifting from exports to domestic sales, the future sales model of the furniture industry will change, and the furniture industry production companies are generally tight liquidity, The capital chain faces severe challenges. It is imperative for industry consolidation and transformation and upgrading.

With the development of e-commerce and the rise of the consumer army after the 80s, traditional industries will gradually transition to e-commerce, realize channel sinking, and strengthen their own competitive advantages. The development of e-commerce in the furniture industry is the inevitable direction of transformation and upgrading.

Opu Steel.com believes that the company has always been very happy and has established a good relationship with suppliers and customers in the local furniture industry. It can make maximum use of Lecong’s industry resources and the company’s previous development and development of the Oupu Mall. As well as logistics links such as warehousing and distribution, it also provides lessons for the implementation of the project.

For this project, OPS Steel also made it clear in its announcement that it hopes to nurture “the company’s new profit growth point to improve the company’s overall anti-risk capabilities.”

In the first three quarters of the year, the company's "increased revenue does not increase profits" net profit fell 5.94% year-on-year. Nowadays, Shanghai Pudong Steel seems unable to avoid the systemic risks of the entire steel industry.

The steel trade credit crisis in Shunde this year, even though it ushered in an “inflection point” last month, bank credit exposures have fallen by a large margin of over 30%, but due to previous credit risk, Foshan’s bad debt ratio has continuously risen.

A few days ago, the Shanghai Pudong Steel Group released the third quarter financial report, which shows that from January to September of this year, the revenue of the company's steel nets was 1.035 billion yuan, an increase of 130.4% over the same period of the previous year. In the third quarter of this year, the operating income of the Oupu Steel Network was 402 million yuan, which is higher than the previous year. Year-on-year growth of 173.84%. OPS Steel said that the increase in turnover was mainly due to the increase in spot sales.

However, the company's growth in net profit is not optimistic. From January to September, the net profit of Oupu Steel Net was 79.54 million yuan, a year-on-year decrease of 5.94%. The net profit in the third quarter was 16.51 million yuan, a year-on-year drop of 39.47%.

In response to this, Oupu Steel Network stated that the business of the Oupu Mall is in an expansion period, and the company’s related costs and expenses have increased significantly. However, for the whole year's performance, Opto Steel still does not seem to have great optimism, and said in its performance forecast that it expects annual net profit of 110 million to 120 million yuan, an increase of -5% to 5%.

A securities analyst who asked not to be named bluntly stated that the average profit of Oupu Steel in recent years has been around RMB 100 million. The growth is not enough. This time involved in furniture e-commerce may be due to the needs of market value management. Hope to seek new profit growth points to attract investors.

Tang Rongguang, general manager of Xiangcai Securities' Foshan Branch, believes that Shanghai Oupu Steel Network is located at a comfortable place and develops a furniture e-commerce platform based on the local professional market. It has geographical advantages and has room for growth. It is currently in a poor environment for steel trade in the country. Under the circumstances, it is also seeking new breakthroughs. At the same time, this investment move is also based on the integration of the traditional furniture industry with the Internet and requires an e-commerce platform for sales and promotion.

For Lipu, the brand director of the Louvre Home Furnishing Group in Guangdong, who came across the industry and initially targeted the furniture e-commerce platform, “Traditional companies have gone to e-commerce companies to explain that e-commerce has room for growth and Lecong’s small and medium-sized companies Furniture companies also have 'touch net' requirements in this area. He said that as a traditional store, the Louvre keeps a close watch on e-commerce. For strategic reasons, it will take further measures in e-commerce in the future.

In addition, on the same day, Shanghai Pudong Steel also announced that the company will set up a wholly-owned subsidiary in Shanghai, Euramerican (Hong Kong) Electronic Commerce Co., Ltd., mainly engaged in e-commerce, investment, and trade, which will help the company expand its overseas business and strengthen its international cooperation. Financial institutions cooperate to broaden their trading channels and reduce their cost.