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1. Jia Ranzhi reached a strategic cooperation with Red Star Macalline to resolutely put an end to "choose one out of two"

On July 3rd, Home of Reality and Red Star Macalline signed a strategic cooperation agreement in Beijing. Wang Linpeng, chairman and CEO of Suanzhijia, and Che Jianxin, chairman of Red Star Macalline, attended the signing ceremony. In this strategic cooperation, the two parties reached a consensus on five items. The most important thing is to maintain a fair competition order in the home furnishing market nationwide, and resolutely put an end to unfair competition behaviors such as "choose one out of two". This actually acknowledges that their “choice of two” that has lasted for many years is what everyone considers to be an act of unfair competition. For this reason, our industry generally believes that Red Star and Ran are transitioning from a completely competitive relationship to a competitive (competition and cooperation) relationship, but is it enough to be consensual? Are there brand suppliers (merchants) and other stores participating? The direction is positive, and it is hard to say what the result will be. What enlightenment does Red Star and the unexpected "hand in hand" bring to our industry? We might as well listen to the comments of Mr. Zhang Qikang, director of Mona Lisa Group:

[Comments] The key is to implement and be careful when new tricks appear.

Borrowing Chinese diplomatic rhetoric, "Cooperation will benefit both, and struggle will hurt both. Cooperation is better than friction, and dialogue is better than confrontation." The incident of Yu Jian and Hongxing's hand in hand is very appropriate and worthy of learning and reflection by colleagues in the ceramic industry: Is such vicious competition behavior the industry's normal competition path choice? Compared with large home furnishings, large building materials, and large real estate, this not only weakens the "hematopoietic function" and "blood circulation" of ceramic brand enterprises (merchants), but also greatly reduces the voice and influence of the industry. , Giving the society the feeling of "a dish of loose sand". On the one hand, companies have to bear the huge cost pressure of various bulk raw materials, and on the other hand, the products are sold at constant price reductions. Both ends are under pressure, profits and cash flow have fallen sharply, and the industry is trapped. The vicious circle of the vicious circle, perhaps after a few rounds of "fighting", many colleagues will fall, which will help increase industry concentration. The so-called "market does not believe in tears", "no sympathy for the weak", "survival of the fittest", "If you don't advance, you will retreat", "the strong are stronger and the weaker are weaker"... Is this the competitive ecology and the road of no return that the industry should have? Can it move from competition to competition and cooperation like unexpectedly and red star? So as to create a good foundation and harmonious atmosphere for the sustainable and healthy development of the ceramics industry.

2. Shell's 8 billion wholly-owned acquisition of Shengdu, capital + Internet thinking, do you understand?

On July 6, Shell Looking for Real Estate announced that it had reached an agreement with Shengdu Home Improvement to acquire 100% of the shares of Shengdu. The total purchase price does not exceed RMB 8 billion. Of course, this transaction still needs to be approved and confirmed by the regulatory authorities.

[Comments] To be honest, I don't quite understand the value and transaction rules of capital and Internet transactions. Sheng is a medium-sized home improvement company, or an Internet home improvement company, or a home improvement company. When I was in Hangzhou in 2018, the boss introduced an annual turnover of approximately 2.8 billion yuan, and the current annual turnover is estimated to be around 4 billion yuan. If, as the purchaser, 8 billion yuan is invested in the acquisition of a company with an annual output of 4 billion yuan, will it be a powerful acquisition in the capital market? The rules of the game in the Internet industry must take into account entry, traffic, future markets, and so on. Regardless of whether the operation succeeds or not after the acquisition, it is a good teaching material for us layman's capital thinking and the spread of Internet thinking.

3. Wrigley Home Furnishings and Lance Home Furnishings hit the main board of Shenzhen Stock Exchange, and Wrigley may become the largest enterprise in the ceramics industry by market value.

On July 1, Wrigley Home Furnishing and Zhongshan Langsi Home Furnishing successively submitted their prospectus to the main board of the Shenzhen Stock Exchange. The prospectus shows that the number of Wrigley Home's proposed public offering of shares this time will not exceed 9,989,717, and will not be less than 10% of the total share capital after this issuance. At the same time, the total funds raised this time is about 1.809 billion yuan.

[Comments] That is to say, once the stock issuance is successful and the raised funds are in place, the issuance will have a market value of 18 billion yuan at that time. It is obviously the largest company in the building and sanitary ceramics industry. In 2020, the revenue of Wrigley Home Furnishing is 6.502 billion yuan, and the net profit is 589 million yuan. The successful listing has raised more than 1.8 billion yuan in one-time funds, embracing capital, and the development and expansion of Wrigley Home Furnishing has more room for imagination.

4. The price of coal has broken through 1,200 yuan/ton, and some ceramic companies take the initiative to "change from coal to gas". If natural gas is not enough, how can ceramic companies turn back?

According to "Ceramic Information", as of now, the price of coal used by many ceramic factories has broken through 1,200 yuan/ton, and even as high as 1,300 yuan/ton at the craziest time. According to reports, some ceramic enterprises have taken the initiative to propose "coal to gas."

[Comments] It is said that the market is an invisible hand. When coal prices reach this level, there is basically no need for the government to promote "coal to gas". This brings me to the association: If everyone flocks to natural gas, Gaoan’s centralized supply What will happen to the centralized gas supply used in the Gas or Neihuang Plan? If the supply of natural gas is further insufficient, how can ceramic companies turn around? Newly build centralized gas supply and restart producer gas? to be or not to be?

Fifth, high energy consumption for precision work or low temperature fast burning crudely manufactured? "Energy Consumption Quota" is contrary to the nature of production

On June 30, the China Building and Sanitary Ceramics Association organized a video seminar on the revision of the national mandatory standard "Energy Consumption Quota for Unit Products of Building and Sanitary Ceramics".

[Comments] This "Energy Consumption Quota" standard is a national mandatory standard, which was officially implemented for the first time on June 1, 2008. I presided over the review of the first draft and subsequent revisions. There are many different opinions each time, and it is more difficult to reconcile. I didn't attend this seminar for some reason, and it is estimated that there will be many different opinions, because in this process, some things are essentially contradictory.

For example, the unit power consumption of sanitary ceramics is closely related to the automation and intelligence of its manufacturing process. The lower the degree of automation, the lower the power consumption. In addition, the energy consumption of ceramic tile production is measured by weight. In a sense, the thinning of ceramic tiles is not encouraged, and the production of thick tiles is easier to meet the standards; and the current explosive rock slabs often take longer to burn in order to prevent cutting and cracking. It may be 2-3 times longer than the firing time of ordinary ceramic tiles. How to fit the "Energy Consumption Limits"; in order to improve product quality, some of our ceramic companies have made meticulous work and appropriate slow firing to ensure consistent product flatness and size shrinkage. The price of the product is 8-10 times that of ordinary ceramic tiles. Do you advocate the spirit of craftsmanship, or do you use low-temperature fast burning or even a little shoddy? These problems are somewhat similar to those in the bidding process where the lowest price wins. I don’t know how this edition of "Energy Consumption Quota" can adapt to the new situation of energy saving and emission reduction, and the craftsmanship and quality of quality that we have always advocated?