In April, with the improvement of China's epidemic control, coating enterprises in various regions have withstood the test of the epidemic, most of them have resumed work and production, the downstream demand has been recovered in succession, and the demand suppressed from February to March has accelerated to release. At this moment, the first quarter of 2020 and the next step of action of the leading enterprise, sanjeshu, have attracted wide attention from both inside and outside the industry.
Affected by the epidemic, the first quarter performance of three trees fell sharply
First of all, the chain impact brought by the epidemic slows down the overall economic development, disrupts the business rhythm of coating enterprises, and generally makes the first quarter's performance worse.
In 2019, the three trees with outstanding performance had revenue of nearly 6 billion yuan and profit of 406 million yuan, with the first quarter's performance significantly reduced due to the impact of the epidemic. According to the first quarter report of 2020 released in mid April, the company achieved revenue of 435 million yuan, a year-on-year decrease of 31.10%, and the net profit attributable to the parent company was negative 126 million yuan, a continuous loss compared with the same period of last year.
Sankeshu said that in the first quarter, the C-end market was greatly impacted, with revenue down 70% year-on-year, mainly because dealers still have limited stock and purchase volume, and it is difficult for decoration personnel in various regions to enter the community for construction; the b-end market recovered well, with revenue down about 30% year-on-year, and the subsequent delivery will be accelerated with the improvement of the real estate resumption; the waterproof sector achieved positive growth in the first quarter, with significant growth Better than coating plate. In terms of product price, the unit price of home decoration wall paint increased by 18.07% year on year, the unit price of engineering wall paint increased by 1.82% year on year, and the unit price of adhesive increased by 32.80% year on year. Thanks to the decline of crude oil price, the unit price of raw material purchase of the company generally decreased. In terms of the three expenses, the company's sales expenses increased by 39.36% year-on-year, mainly due to the increase of employee compensation and publicity expenses.
2. After the outbreak, the three trees are still ambitious
During the epidemic period, all store activities could not be carried out and delivery services could not be provided. As a result, transaction volume decreased and decoration consumption demand decreased accordingly. Fixed costs such as personnel wages are relatively large, which should be the common portrayal of most coating enterprises. How to turn crisis into opportunity and actively respond to it, we found that "the company's sales expenses increased by 39.36% year-on-year, mainly due to the increase of employee compensation and publicity expenses."
On March 17, three trees opened the online "cloud planting tree", and the house did public welfare. "Water the clouds" for the three trees public welfare forest on the mobile phone, and then ant forest will plant the real trees corresponding to the energy in the name of the participants at the right time to help the ecological and environmental protection public welfare.
On March 30 and 31, three trees snatched the live studio of the factory, healthy interior wall paint, new house decoration package, whole house fashion package Super many high-end, low-cost and limited time rush to buy health products, as well as welfare red envelopes.
Other companies are laying off workers, while three trees are offering 100000-350000 + attractive annual salary, opening the contactless "cloud school recruitment" to start the war of robbing people.
Three trees also released the corporate social responsibility report of 2019, with the theme of "pay homage to a better life", elaborating the implementation of social responsibility of three trees in detail around the three parts of "sustainability, business responsibility", "friendliness, environment responsibility" and "great love, social responsibility".
On April 15, sankeshu waterproof online wealth forum and new product press conference were held, and Wanhua chemical was the first to release Lvyi Qingwei water-based ultra durable polyurethane waterproof coating, redefine the environmental protection of polyurethane coating, open the era of "Qingwei, health and environmental protection" of waterborne polyurethane coating, and lead the waterproof coating industry to "oil to water" in an all-round way.
In the annual report of 2019, we also noted that the projects under construction in sanjeshu mainly include the project of sanjeshu high tech material comprehensive industrial park, Sichuan phase III project and Hebei base. In 2020, the company will focus on promoting the construction of Hebei Boye base, and the capital expenditure is expected to be more than 500 million.
On March 2, the paint production and supporting construction project of Hebei sanjeshu paint Co., Ltd. was started in Boye county. The total investment of the project is 1.1 billion yuan, the total investment of the first phase is about 600 million yuan, covering an area of 200 mu, with an annual output of 735000 tons of latex paint, real stone paint, putty powder, colorful paint, tile glue, waterproof paint, interface agent, etc., and 3 million square meters of insulation integrated board. The total investment of phase II project is 300-500 million yuan per month, covering an area of 200 mu. Phase I project is expected to be completed and put into operation in December 2020.
In addition, the largest project under construction in sankeshu - "sankeshu high tech material comprehensive industrial park" is also being promoted. The first phase of the project covers an area of 650 Mu and plans to build an annual production of 1 million 435 thousand tons of paint project. Accelerate the national layout, speed up the expansion of production capacity, and improve the market share. The industrial layout of three trees after the outbreak is still ambitious.
Not only that, Chinese and foreign coating weekly also noted that the leading coating enterprises in the counter trend expansion are Libang, ASI, etc. The strategies of propaganda and personnel stability are different, but very similar. Libon also launched antibacterial coatings during the outbreak, and Asia entered the waterproof field.
3. The four most likely changes after the recovery of the industry
Perhaps leading enterprises feel the impact and pressure, and actively respond to and look for vitality. The epidemic has caused enterprises to rethink the source of customers. After the industry recovers, four changes are most likely to occur.
The first change is that many people live at home, and consumers may not be able to decorate, but they have more time to learn about decoration knowledge, choose decoration materials, design decoration plans, and may start to understand, consult decoration information, schedule decoration projects, etc. what enterprises need to do is to accumulate some customer resources, customer information obtained by e-commerce platforms, and the intention of promoting friends circle Linkage with customers will focus on some online landing promotion activities. Consolidate the orders generated by these online activities and serve these customers well.
The second change is that in addition to strengthening the interaction and communication with customers, coating enterprises also put the design in front, through the company's product library, so that customers can see the partial design effect in advance, and present a general design scheme to customers, so that after the resumption of work, customers can also quickly realize the transformation to the store.
The third change is that coating enterprises will increase investment and application in informatization and digital construction, strengthen the informatization construction of industrial Internet and promote the development process of intelligent factories with the goal of industry 4.0.
The fourth change is that green, anti-bacterial and anti mildew functional coatings may have better development opportunities.
Although the coating industry is generally in a bad state in the first quarter, most leading coating enterprises pay more attention to the industrial development after the epidemic, grasp the general trend, plan for a long term, cultivate new formats and models, and promote green development, integrated development, innovative development and intelligent development. (Chinese and foreign coatings weekly)
Wen │ Yu Feilai editor │ Wang Yue
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