1. Business Status

Furniture manufacturing refers to various furniture manufacturing products,and are made of these materials,such as wood, metal, plastic, bamboo, rattan, etc., with functions such as sitting, lying, leaning, storage, spacing, etc., and can be used in residences, hotels, offices, schools, restaurants, hospitals, theaters, parks, boats, etc.Furniture manufacturing products are very rich, including beds, tables, chairs, stools, cabinets, boxes, shelves, sofas, screens, etc.

With the rapid development of the economy and the continuous improvement of people's living standards, furniture, as an important carrier of daily life, is not limited to meeting the material needs of consumers, but also entrusts people's spiritual pursuits.In recent years, China's furniture industry has developed rapidly. In 2020, the number of enterprises in China's furniture manufacturing industry reached 6,544, an increase of 72 compared with 2019 and a year-on-year increase of 1.1%.In 2021, the number of enterprises in China's furniture manufacturing industry was 6,544, the same as at the end of 2020.

​The data shows that with the increase in the number of enterprises in China's furniture manufacturing industry, the total assets also increase. In 2020, the total assets of China's furniture manufacturing industry reached 634.79 billion RMB, an increase of 41.605 billion RMB compared with 2019, a year-on-year increase of 7.0%. In the first half of 2021, the total assets of China's furniture manufacturing industry are 616.95 billion RMB, of which current assets are 379.55 billion RMB.

In 2020, the accounts receivable of China's furniture manufacturing industry reached 100.79 billion RMB, an increase of 6.885 billion RMB compared with 2019. In the first half of 2021, the accounts receivable of China's furniture manufacturing industry was 98.98 billion RMB; the inventory reached 87.26 billion RMB, compared with 2019. An increase of 5.489 billion RMB. In the first half of 2021, the inventory of China's furniture manufacturing industry was 87.29 billion RMB; the finished products reached 34.83 billion RMB, an increase of 2.299 billion RMB compared with 2019. In the first half of 2021, the finished products of China's furniture manufacturing industry were 34.59 billion RMB.

While the assets of China's furniture manufacturing industry are growing, liabilities are also increasing. In 2020, the liabilities of China's furniture manufacturing industry reached 354.02 billion RMB, an increase of 37.538 billion RMB compared with 2019, an increase of 11.9% year-on-year. In the first half of 2021, China's furniture manufacturing industry Liabilities were 352.39 billion RMB.

In 2020, the operating income and operating cost of China's furniture manufacturing industry dropped. In 2020, the operating income of China's furniture manufacturing industry was 687.54 billion RMB, a decrease of 47.059 billion RMB compared with 2019; the operating cost was 570.8 billion RMB, a decrease of 33.255 billion RMB compared with 2019.

In addition to financial expenses in 2020, the sales expenses and management expenses of China's furniture manufacturing industry have declined to varying degrees. The sales expenses of the furniture manufacturing industry were 15.24 billion RMB; the management expenses were 34.38 billion RMB, a decrease of 13.094 billion RMB compared with 2019. In the first half of 2021, the management expenses of China's furniture manufacturing industry were 18.49 billion RMB; the financial expenses were 6.06 billion RMB, compared with 2019. The annual increase was 1.414 billion RMB, and the financial expenses of China's furniture manufacturing industry in the first half of 2021 were 2.39 billion RMB.

​Affected by the epidemic in 2020, the total profit of China's furniture manufacturing industry has declined significantly and is at the lowest level in the past five years. In the first half of the year, the total profit of China's furniture manufacturing industry was 17.04 billion RMB.

2. ​Comparative Analysis Of Key Enterprises: Suofeiya Home Collection Vs Oppein Home

With the rapid development of China's furniture manufacturing industry, furniture manufacturing enterprises are blooming everywhere, such as Suofeiya Home Collection, Oppein Home etc. Oppein Home Established earlier than Suofeiya Home Collection, but Suofeiya Home Collection listed earlier than Oppein Home , Suofeiya Home Collection and Oppein Home Headquarters are in Guangzhou.

In terms of total assets of Suofeiya Home Collection and Oppein Home in 2020, the total assets all increased to varying degrees, among which Oppein Home, the increase was more pronounced, and the total assets of Oppein Home were higher than that of Suofeiya Home Collection. In 2020, the total assets of Suofeiya Home Collection reached 10.87 billion RMB, an increase of 2.386 billion RMB compared with 2019; The total assets of Oppein Home reached 18.84 billion RMB, an increase of 4.03 billion RMB compared with 2019.

From the perspective of revenue, the total operating income of Suofeiya Home Collection and Oppein Home maintained steady growth in 2020, and the total operating income of Oppein Home was higher than that of Suofeiya Home Collection. In 2019, it increased by 667 million RMB; Oppein Home's total operating income was 14.74 billion RMB, an increase of 1.21 billion RMB compared with 2019.

In terms of attributable net profit, the attributable net profit of Oppein Home in 2020 was higher than that of Suofeiya Home Collection. In 2020, the attributable net profit of Suofeiya Home Collection reached 1.192 billion RMB, an increase of 115 million RMB compared with 2019; the net profit attributable to Oppein Home reached 2.063 billion RMB, an increase of 224 million RMB from 2019.

From the perspective of gross profit margin, affected by the epidemic, the gross profit margin of Suofeiya Home Collection and Oppein Home in 2020 both declined slightly, and the gross profit margin of Suofeiya Home Collection in 2020 was higher than that of Oppein Home, and the gross profit margin of Suofeiya Home Collection in 2020 was 36.56%. A decrease of 0.77% from 2019; Oppein Home gross profit margin was 35.01%, a decrease of 0.83% from 2019.

From the perspective of revenue structure (by industry), the operating revenue of Suofeiya Home Collection and Oppein Home in 2020 mainly came from the furniture manufacturing industry, and both account for more than 98%. In 2020, the revenue of Suofeiya Home Collection furniture manufacturing business was 8.32 billion RMB , accounting for 99.57% of the total operating income; Oppein Home furniture manufacturing business income was 14.51 billion RMB, accounting for 98.4% of the total operating income.

From the perspective of revenue structure (by product), in 2020, Suofeiya Home Collection's operating income mainly came from wardrobes and their supporting products, accounting for 80.23%, while Oppein Home's operating income mainly came from kitchen cabinets and wardrobes, of which kitchen cabinets account for 80.23%. 41.1%, wardrobes accounted for 39.2%, and wooden doors and bathroom business revenue accounted for 5.2% and 5.0% respectively.

In 2020, the operating income of Suofeiya Home Collection and Oppein Home mainly came from South China, East China and North China. In 2020, the business income of Suofeiya Home Collection in South China was 2.42 billion RMB, accounting for 28.95% of the total operating income, accounting for the largest proportion; business income in East China It was 1.83 billion RMB, accounting for 21.96% of the total operating income; the business income in North China was 1.58 billion RMB, accounting for 18.87% of the total operating income. In 2020, Oppein Home's business income in East China was 4.69 billion RMB, accounting for 31.8% of total operating income, accounting for the largest proportion; South China's business income was 2.33 billion RMB, accounting for 15.8% of total operating income; North China's business income is 1.97 billion RMB , accounting for 13.4% of total operating income.

​From the perspective of sales model, the sales model of Suofeiya Home Collection and Oppein Home is basically the same. Sophia's sales model includes dealer channels, self-assembly channels, home improvement channels, bulk project business, new e-commerce retail channels, and direct-operated specialty stores. Oppein Home's sales model includes dealer channels, self-assembly channels, home improvement channels, bulk project business, new e-commerce retail channels and direct-operated specialty stores.

In terms of the number of dealers, the number of dealers of Oppein Home was significantly higher than that of Suofeiya Home Collection. In 2020, Oppein Home had a total of 7,062 dealers of various types, and Suofeiya Home Collection had a total of 3,629 dealers of various types.

From the perspective of R&D investment, the amount of R&D investment of Oppein Home was significantly higher than that of Suofeiya Home Collection, Oppein Home in 2020 R&D investment amounted to 699 million RMB, accounting for 4.74% of operating income; Suofeiya Home Collection R&D investment amounted to 210 million RMB, accounting for 2.51% of operating income.

In terms of market share, the market share in 2020 of Oppein Home is slightly higher than that of Suofeiya Home Collection. In 2020, Suofeiya Home Collection furniture manufacturing business revenue accounted for 1.21% of the total operating income of the national furniture manufacturing industry; Oppein Home furniture manufacturing business income accounted for 2.11% of the total operating income of the national furniture manufacturing industry.

3. Conclusion
The sales model of Suofeiya Home Collection and  Oppein Home was basically the same, Oppein Home was superior to Suofeiya Home Collection in terms of enterprise scale, distributor layout, R&D investment and market share, but Suofeiya Home Collection was superior to Oppein Home in terms of profitability