After nearly 13 years at the helm as chairman, Gu Jiangsheng has retired.
On September 22, Gu's Home Furnishings disclosed a personnel change announcement, with Gu Jiangsheng as the main character, who recently applied to resign from the positions of chairman and director of the board's strategic committee. After leaving the core power circle, Gu Jiangsheng will continue to stay in Gu's Home Furnishings as a company director and a member of the board's strategic committee.
As the founder of Gu's Home Furnishings, Gu Jiangsheng has thus moved away from the core of power.
The successor, Kuang Guangxiong, is a senior executive of "Yingfeng System".
His resume shows that Kuang Guangxiong was born in 1979, with a master's degree, and is a certified public accountant in China and an international accountant. From July 2002 to October 2018, he successively served as the financial manager of Midea's daily electrical group, the financial manager of Midea's American company, the financial director of Midea's kitchen electrical appliances, the financial director of Midea's central air conditioning, and the financial director of Midea's Kuka China joint venture; since October 2018, he has served as the vice president of Yingfeng Group and is currently also a director of the ninth board of directors of Yingfeng Environment.
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This baton pass has completed the last piece of the puzzle for Yingfeng Group to "refresh" the power center of Gu's Home Furnishings.
The performance target of 5.76 billion yuan
In January this year, Yingfeng Group's acquisition and merger of Gu's Home Furnishings officially landed, with Yingfeng Ruihe Investment becoming its controlling shareholder with a 29.42% stake, and He Jianfeng officially becoming the actual controller.
Personnel changes are also being carried out in an intense manner.
In February, Gu's Home Furnishings completed the board of directors, expanding the number of directors from the original 5 to 9, with 3 out of 6 non-independent directors being vice presidents of Yingfeng Group, and Kuang Guangxiong is one of them; among the executives, President Li Donglai, Vice President Li Yunhai, and Vice President Ou Ya Fei are all veterans of the "Midea System".To date, Yifeng Group has successfully completed the handover, steering through the board of directors, but Gu Jiangsheng's position remains unshaken, still serving as the chairman.
Looking back, Gu Jiangsheng began serving as the chairman of Kukaho Home Furnishings in December 2011, a tenure that has lasted nearly 13 years, during which he has never received compensation from the listed company. According to the 2023 annual report, Gu Jiangsheng's term should end in February 2027. If it were not for the "sale," considering his status as the founder, his actual tenure might have been even longer.
In conjunction with the "change of guard" announcement, a stock incentive plan was also disclosed. Kukaho Home Furnishings plans to grant a total of 9.835288 million restricted shares to 84 core backbone employees, accounting for 1.2% of the total share capital at the time of the announcement.
The specific plan is that, under the condition of meeting the grant requirements, the aforementioned employees can purchase Kukaho Home Furnishings' repurchased company A-share ordinary stock at a price of 11.84 yuan per share; this involves performance assessment requirements, with the assessment years being the three fiscal years of 2025-2027, conducting performance assessments and lifting restrictions on sale annually, with proportions of 40%, 30%, and 30% respectively.
The corresponding performance targets for these three years are: a net profit for 2025 not lower than the average net profit of the three years from 2021 to 2023; a net profit for 2026 not lower than 105% of the average net profit of the three years from 2021 to 2023; a net profit for 2027 not lower than 110.25% of the average net profit of the three years from 2021 to 2023 (with net profits primarily based on net profits attributable to the parent company).
According to the data from Eastmoney Choice, the average net profit attributable to the parent company for Kukaho Home Furnishings from 2021 to 2023 was 1.827 billion yuan. Based on this, the company's assessment standards for 2025-2027 should not be lower than 1.827 billion yuan, 1.918 billion yuan, and 2.014 billion yuan, respectively, totaling approximately 5.76 billion yuan.
Performance Shows Signs of Decline
The introduction of the incentive plan is undoubtedly to motivate employees and help stabilize performance growth. After all, in the first half of the year that just passed, Kukaho Home Furnishings has already shown signs of decline.
In the first quarter of this year, Kukaho Home Furnishings' revenue increased by 10.04% year-on-year, with a net profit attributable to the parent company increasing by 5.02% year-on-year, and a net profit after deducting non-recurring gains and losses increasing by 10.29%. These three indicators plummeted in the second quarter, with year-on-year decreases of -7.44%, -9.07%, and -18.45%, respectively, dragging down the overall performance for the first half of the year.
As of the end of June, the company achieved a revenue of 8.908 billion yuan, which was essentially flat compared to the same period last year, with a net profit attributable to the parent company decreasing by 2.97% year-on-year to 896 million yuan, and a net profit after deducting non-recurring gains and losses decreasing by 6.76% year-on-year, to 780 million yuan.From the product end, sofas continue to be the main category, driven by foreign trade, contributing a revenue of 4.94 billion yuan in the first half of the year, a year-on-year increase of 14.2%. Another category that achieved growth is custom furniture, with a year-on-year revenue increase of 24.85% to 490 million yuan, accounting for about 61% of the total revenue.
Bedroom products, integrated products, and information technology services all experienced不同程度的下滑 compared to the same period last year, with revenue scales of 1.53 billion yuan, 1.27 billion yuan, and 320 million yuan, respectively, and corresponding growth rates of -19.92%, -17.42%, and -22.51%.
In terms of cash flow, as of the end of June, the company's net cash flow from operating activities fell by 18.1% year-on-year, approximately 637 million yuan; the net increase in cash and cash equivalents was -1.922 billion yuan, and the scale of monetary funds was 1.659 billion yuan, which was directly "halved" compared to the 3.583 billion yuan at the end of 2023.