2021-08-31 Opp Home (603551) issued a notice saying: Changjiang Securities, Guotai Junan, Caixin Securities, Xintong Fang, Yuansheng Investment, Bank of China Asset Management, Guoshou Asset Management, Huabao Fund, Taixin Fund, Hengtai Securities, Zhejiang Merchants self-management, Daohe Investment, Zhongjitong Capital, Shiwa assets and investors investigated our company on 2021-08-30. The survey was received by Ms. Li Jie, secretary of the board of directors, Ms. Zhu Shuang, representative of securities affairs, and Ms. Lin Jing, the customs manager.

The main contents of this survey are as follows:
Q1: the financial report data show that 21H1's revenue is 905 million yuan, which is more than half of the highest value in previous annual reports. Can you talk about the company's plans for the second half of this year? Is it expected to hit an all-time high in revenue this year? a
1: although there are still great challenges in accomplishing this year's budget target, the overall company is still confident in completing the sales tasks. generally speaking, it is still online and offline, 2B2C, and multi-category to channel the whole region to promote these aspects: (1) constantly enrich and improve the two core business sectors of home appliances and household appliances, and maintain the leading advantage of Yuba and integrated ceiling. The Wang fried products of electrical appliances continue to drive the sales of high-end electrical appliances. (2) focus on e-commerce and engineering, pay close attention to channel sinking and big business optimization, attack home decoration, dealer training and upgrading and other measures to further establish a diversified marketing system. (3) increase R & D investment, explore innovative technologies with cutting-edge and scientific and technological sense, promote product upgrading and iteration, and provide consumers with products or space system solutions with the advantages of intelligence, youth, fashion and fast loading. (4) to further improve the digital management ability of the whole industry chain. Promote the landing and operation of digital terminals in stores, intelligent transformation of production lines, digital upgrading of marketing methods and other measures to further achieve fine management, intelligent production, accurate customer service, digital marketing and so on. Improve operational efficiency.
Q2: what is the impact of rising prices of bulk raw materials on performance? What are the countermeasures in the face of cost pressure? a
2: in the short term, the price increase of bulk raw materials has a certain impact on gross profit and performance, but the price increase of bulk raw materials is cyclical, and the state also has policies to regulate and control, so we judge that the follow-up risk is controllable. The company has also taken a series of measures, such as adjusting the prices of some mid-and high-end Yuba, MAX boards and walls, while reducing costs on a large scale in the technology side and supply chain, improving operational efficiency and reducing expenses in the middle and backstage. In the same caliber, the gross profit margin is only slightly lower than last year.
Q3: what is the company's product plan? a
3: from the point of view of the company's development and planning, the first thing is to increase the stock and increase the concentration of the existing industry; Yuba's current market share is less than 20%, and the integrated ceiling is more scattered, so we should do it deeply and strengthen the ability of R & D and innovation; at the same time, we should also be broad and broaden the product category; generally speaking, Opp has the ability to create new products and is committed to making profitable products. For example, the balcony door and window service that we launched this year has formed a closed loop of the balcony business; through the expansion of the balcony, open the entrance to the hardcover market, drive lighting and integrate the sales of walls.
Q4: what is the next layout of the company in the home decoration channel? a
4: the company's next strategy in the home improvement channel is the exhibition hall, deep operation, according to the size of the home improvement company to select TOP50 strong, while focusing on home improvement companies and consumers relatively actively embrace the home decoration industry of the 50 cities, and then we will focus on resources to focus on the top 50 and 50 cities, not only to the top 50 home improvement companies, but also to do deep refinement in these 50 cities.
Q5: the company used to open stores mainly in first-and second-tier cities, but now the first-and second-tier cities are basically hardcover houses, how can the company solve the current predicament? a
5: sinking channels to third-and fourth-tier cities and developed county towns is the company's important channel strategy. In the first half of the year, we opened 315 stores, including 46 provincial capitals / sub-provincial capitals, 103 prefecture-level cities and 166 county-level cities. The proportion of prefecture-level cities and county-level cities reached 85%, fully reflecting the remarkable achievements of our channel sinking strategy. In the first-and second-tier cities with a high proportion of hardcover houses, the company will strengthen cooperation with real estate enterprises while doing a good job in risk control.
Q6: what is the way of cooperation and settlement between the company and major real estate customers? a
6: the company mainly has two cooperation modes: group direct operation and local distributors, some of the dealers adopt the way of advance payment and goods, and there is no problem of account period and repayment; most of the customers directly operated by the group are paid back by cash and bank acceptance drafts. The company believes that high gross margin is an effective way to combat real estate risks, so engineering customers will choose according to the payback ability and payment cycle, cooperation to electrical products first, not a simple material supplier. The overall risk is controllable
Q7: how is the construction of the second phase of the company's Jiaxing production base? When is it expected to be put into large-scale production? a
7: the second phase of Jiaxing production base is still under construction. It is expected that the project will be completed in the second half of 2021 and will be put into production one after another.
Q8: the company's R & D expenditure in the first half of this year has increased by nearly 5 million compared with last year, but as long as it is the increase in other expenses, can you explain what other expenses are spent on R & D? a
8: the other expenses of the company's R & D expenses in the first half of the year are mainly the development fees and consulting fees related to the front-end technology reserve carried out by the company in cooperation with universities and scientific research institutes. Thank you!
Q9: what are the company's e-commerce channel platforms? a
9: at present, the company's e-commerce channels are mainly Tmall and JD.com, and it has newly entered the e-commerce platforms such as Douyin, Pinduoduo, Kuaishou Technology and so on.

Opp Home main business: research and development, production, sales: household bathroom appliances, ventilation and replacement equipment, heating and cooling equipment, integrated ceilings, household electrical appliances, household decoration materials, metal products, metal materials (except precious metals above), household kitchen appliances, integrated stoves (produced with valid license), kitchen products, sinks, cabinets, wood and plastic products, household decoration materials, lighting appliances, smart household products, Electronic products and accessories, electrical switches, sanitary ware, furniture And provide the installation of the above products, after-sales maintenance services. (except for the implementation of special access management measures stipulated by the state) (projects subject to approval according to law shall be approved by the relevant departments before business activities can be carried out.

Opp Home 2021 reported that the company's main income was 905 million yuan, up 51.1% from the same period last year; net profit from home was 86.581 million yuan, up 64.06% from the same period last year; deducting non-net profit from 81.4375 million yuan, up 65.49% from the same period last year; debt ratio 31.55%, investment income 1.9689 million yuan, financial expenses-14.7148 million yuan, gross profit margin 42.15%.