I. Overview
By the impact of the new Crown Pneumonia epidemic, the company's production and operation is facing greater challenges. In order to cope with the epidemic, the company insisted on its own development proposition, centering on "intensive cultivation and development, synergistic ****win" to carry out relevant work, intensive cultivation of customized furniture and ancillary, to develop the whole set and the whole set of cloud business, and at the same time to create a "new model "+ " technology and big infrastructure". " Technology infrastructure ", towards the direction of " let the process of realizing a better life better " innovation work.
(a) The company continues to increase investment in big data and artificial intelligence, relying on the massive design data, marketing data, and production data it has accumulated, to strengthen the innovation and research and development of intelligent design, intelligent marketing, intelligent manufacturing, and technology infrastructure.
1, intelligent design
(1) Hydrogen design upgrade. Based on ten million design plans, the system automatically extracts room 3D structural data, floor layout structural data, semantic data, and effect diagrams to build a 3D multi-level data set. Based on this super large-scale dataset, the company has developed a new ZERO series of house type matching engine, automatic layout engine, and 3D semantic search engine. Based on these AI engines, Hydrogen Design launched the Smart Edition, where designers only need to provide flat house types and demand tags, and can obtain high-quality multiple design solutions (including floor plans, renderings, and 3D scenarios) in less than 1 minute. After the launch of Hydrogen Design Smart Edition, it has received an average of 90,000 tasks per month and completed 270,000 high-quality design solutions, which has a positive effect on the front-line staff to get design inspiration, online order negotiation, mid-term follow-up, and offline transaction.
(3) Design system upgrade. Customized design software to encryption lock, comprehensive cloud-based, SaaS, design data, product data all online. After the software cloud
ization, it enhances the efficiency, reduces the cost, facilitates business collaboration, and online also lays the foundation for the in-depth application of big data and artificial intelligence. Personalized recommendations, dynamic workbench, intelligent layout, intelligent negotiation into the designer's daily operation, effectively improving the design effect. The system takes the upgraded intelligent parameterization engine as the core, integrates hardwear, softwear and customization, and improves the ability of comprehensive personalized design services. The newly launched whole package design system of the whole package hydrogen design, cloud clinic, dynamic line generation, lighting analysis, water and electricity planning functions, etc. for the whole package business to inject new momentum.
(4) Cloud rendering reconstruction. By simplifying the system processing steps and optimizing the key nodes, it achieves the goal of a 60% comprehensive speed-up for light-speed rendering. Through machine learning algorithms to optimize the mesh of the 3D model and dynamically adjust the performance parameters of the circular arc part, the rendering effect of the circular arc surface is greatly improved without increasing the rendering time. The cloud rendering architecture has been reconfigured to quickly render short videos, supporting a variety of forms of short videos such as growing videos, roaming videos, and scene snapshot changes, which have gained popularity among designers since their release in April.
2, intelligent marketing
(1) online marketing. With the design software as the core, a huge amount of high-quality renderings, VR panoramas, small videos are generated every day, and these contents are distributed through the content matrix of the Meijia platform such as Meet Meijia, Painting Home, Sunshine Home, etc. The behavior of the users when viewing the contents contributes various labels to the system. Artificial intelligence uses labels based on personalized recommendation algorithms, on the one hand, to push more matching content for users, on the one hand, mining and analyzing user behavioral data, predicting user demand, and then providing accurate personalized marketing solutions.
(2) offline management. The U.S. home shopping assistant, the shopping guide offline traffic into the online unified operation, but also to undertake the online traffic sent over to provide customers with a more humanized service. The shopping guide assistant and Meijia business card provide a variety of tools for designers, shoppers and stores to operate their own private domain traffic, and do a good job of marketing, sales and management. Through cooperation with Tencent, small programs such as Painting Home and Sunshine Home can be run on the store's large screen equipment apart from WeChat, providing a diverse range of interactive scenes and rich display content for the store.
3. Intelligent manufacturing
(1) Supply chain system upgrade. Due to the opening of the East China Intelligent Manufacturing Base, the intelligent supply chain system has been upgraded accordingly with an AI analysis engine. It uses dynamic data to predict sales in each region, and through monitoring, simulation, emulation, and commanding purchasing, calling for delivery, and automatic replenishment, it realizes the automatic optimal matching of supply and demand resources in multiple locations, which improves the overall work efficiency and warehouse utilization rate, and reduces the occupation of funds.
(2) Splitting order scheduling system upgrade. The intelligent billing system upgrades the automatic billing engine, the proportion of automatic billing orders continues to rise, the error is reduced, the customized packaging module has been improved, and the packaging efficiency has been significantly improved. Intelligent scheduling system upgrades the scheduling algorithm, improves the cloud scheduling module, improves the material utilization rate, optimizes the production batch organization module and production planning module, and improves the accuracy of the production plan and the utilization rate of the warehouse.
(3) Smart manufacturing equipment and production line upgrade. With the commissioning of the East China Smart Manufacturing Base, a large number of self-developed production equipment to the front line. Woodworking door sorting line to the feeding, scanning, gripping, storage, sorting, take out, out of the whole line of full automation, reducing the intermediate handling and scheduling links, to achieve unmanned operation. The Blister Door Sorting Line strengthens the perishable parts of the blister door panels to meet the high efficiency and achieve zero damage. The new automatic opening workstation, AI-based board defect visual inspection equipment, and automatic labeling equipment have all landed in the East China Smart Manufacturing Base, which meets the new Smart Manufacturing Base's production needs of greater scale, high efficiency, and customization.
4, technology, large infrastructure
Relying on the nation's thousands of terminal store network and more than 10,000 designers, with the help of AI cloud technology to the existing three major databases (house type library, product library, program library) to carry out new upgrades, to build the country's various regions, a variety of housing type of each property, the customer's different stages of life portraits, different occupational labels, different styles of design cases, such as a large-scale Database. At present, there are nearly 100 cities with house type structure data, housing information, etc. under construction, and a large database of decoration programs based on AI intelligent design is also under construction, currently covering about 8,000 properties, with programmed house type data of more than 550,000 households. The construction of a large database significantly improves the design efficiency and quality of the program, so that designers are liberated and transformed into consultant-type service personnel to provide users with more efficient and personalized high-quality design services.
(b) The company established a platform for cooperation with master product research and development, combined with domestic and foreign light luxury home design trends, to create a new style of new products for the whole house, while making efforts to support the whole house of matching products, to provide customers with a better solution for the whole house.
1, the company joined hands with the design master Chen Lijian, launched the "master space - Chen Lijian works - standing shadow", the series is the company from the product, the model of the new upgrade. The breakthrough of this series of products is the integration of whole-house hardcover + whole-house furniture + whole-house softcover, the design has the versatility, diversity, environmental protection, the real from rough to home, to realize the one-stop turnkey ready to live.
At the same time, the company has joined hands with Italian designer LELE to release the new Italian style works "No Printing Valley" with both aesthetics and craftsmanship. The series is very imaginative to add wood grain, leather, cotton and linen and other warm natural materials, with metal, glass modern technology, presenting a new Italian contemporary design that respects nature and quality, and improve the company's product image.
2, supporting products continue to uphold the high quality, high value, diversified policy, checking for gaps, make efforts to match. Dining room accessories, around the various types of people's lifestyles in-depth research and development of the "home + series" such as cute pet home, gourmet home, dream home, home, intelligent home, enjoy home; bedroom accessories, focus on the "bed + mattress" package to add and optimize the mattress category is also due to the introduction of leading antimicrobial resistance. The quality of mattresses was further enhanced by the introduction of leading anti-bacterial and anti-mite technology; kitchen cabinet products, two new series of products were listed in the first half of the year (Brest and Milan Sky series), the new Midea kitchen appliance brand was introduced, and we continued to make efforts to cooperate with the boss, Foton and other well-known kitchen appliance brands, and actively embedded kitchen appliance products to enhance customer stickiness in the live events. Kitchen cabinet supporting marketing insisted on the main kitchen cabinet 9999 explosive package, and innovatively launched 12,800 upgrade package to provide customers with more choices. (iii) The company utilized "BIM virtual decoration system" and "airport tower-type central planning and scheduling system" to empower the construction management of Christmas Bird, laying the cornerstone for the delivery of the whole package to the whole country, and at the same time, strengthened the recruitment of members of Homkoo Cloud and carried out the innovative development. HOMKOO whole decoration cloud business, help the whole decoration cloud members of the integration of the whole decoration strategy effectively landing. 1, Christmas bird whole decoration through the "BIM virtual decoration system", and the front-end "whole decoration design system" seamless combination, and empowered to deepen the designers, through the simulation of the whole process of decoration, automatically generate the work guide. Through the simulation of the whole process of decoration, it automatically generates work instructions, work orders, material lists, and material distribution instructions, providing an accurate basis for the subsequent construction process, construction standards, material stocking, and material distribution.
Christmas Bird whole decoration and through the establishment of the "airport tower type centralized plan scheduling system" in Guangzhou, remote scheduling of the Guangzhou-Foshan two places of each transaction of the whole decoration customer site construction progress and material distribution. On the one hand, through the construction instructions, command and scheduling in the construction site construction, scheduling project managers and various types of workers into the construction site, at the same time, scheduling project supervisors on the construction site for technical briefing, node acceptance, to ensure that the site is completed on time and quality. On the other hand, through the material scheduling, stocking and distribution instructions, scheduling the scheduling stocking and distribution of the main and auxiliary materials, solving the material supply chain problem of the construction site and ensuring the construction progress of the construction site. At present, the tower-type centralized planning and scheduling system has the ability to empower other self-owned cities other than Guangzhou and Foshan (as of the date of disclosure of the half-year report, the system has begun to empower the Christmas bird of Nanjing's whole set), which lays a solid cornerstone for the Christmas bird of the whole set to the national delivery.
In the first half of the year, the company also continued to strengthen the delivery quality and word-of-mouth marketing of the Christmas Bird site. First of all, the company to create by the design master Chen Lijian design to create a model room "Li Ying", the space with professional design and strengthen the space storage to win the industry and customer satisfaction; Secondly, the company to develop the whole delivery technology, continue to upgrade the process (tile thin paste process, wood flooring full plywood process, double cloth tape paste process, leveling meter Stick yin and yang corner strip process) and the implementation of the site; again, relying on the technology research and development base of the continuous exploration of the iteration of the construction process optimization, project manager training and certification onboarding, front-end process training, and so on, continue to optimize the construction process and enhance the site management personnel professional. In the continuous optimization of the standard process at the same time, the company has certified 745 industrial workers, 217 project managers, 39 installation managers, front-end process training of about 588 people, to create a platform for the operation of the project manager and industrial workers of the "Christmas Island"; Finally, the company attaches importance to the customer experience of the whole process, the construction site for the Finally, the company attaches importance to the whole process of customer experience, the construction site for professional image protection, to create a 5S standard demonstration site, through the model room and so on to build, the whole house 1:1 put line 2.0, site word-of-mouth marketing.
At present, China is in the middle and late stages of urbanization, the new housing market in first-tier cities tends to be saturated, the market is gradually moving into the era of the stock of housing, the demand for stock of housing and then renovation is gradually released, the home furnishing after-market has great potential for development. Christmas Bird's self-managed decoration in first-tier cities can well match the demand for redecoration of this type of stock.In the first half of 2020, the number of Christmas Bird's decoration in Guangzhou, Foshan and Chengdu started 817 households, and 476 households were delivered, and the revenue of Christmas Bird's self-managed decoration channel (full-caliber, including furniture supporting) reached about 94 million yuan (of which 68 million yuan was reached in the second quarter, a year-on-year increase of 20%), and the collection of more than 1 million yuan was recorded in Guangzhou, Foshan, and Chengdu. The region also appeared in a single month collection of more than 1.8 million benchmark designers. With the further subsiding of the impact of the epidemic and the gradual opening up of the whole business in more self-owned cities, Christmas bird self-owned whole business will show more room for development.
2, in the first half of 2020, the company continued to force the market layout of HOMKOO whole decoration cloud. As of the end of the reporting period, the number of HOMKOO whole decoration cloud members *** counted 3,000, HOMKOO whole decoration cloud has become the industry's number of members, members of the regional distribution of the double leading whole decoration empowerment platform. In order to help HOMKOO Cloud members occupy more market share in the whole decoration market, the company also carried out a series of innovations in the first half of the year:
(1) The establishment of the MRKOQ customized brand of KKOO, which is exclusively available to HOMKOO Cloud members to help them realize the integrated design and sales of soft and hard decorations more quickly. As a professional brand of cabinet customization, MRKOQ is specially designed for the integration of hard and soft furnishings. The MRKOQ system and the HOMKOO cloud platform AI whole design system "K System Space" are perfectly integrated, and the two can be directly integrated and synchronized design within the same AI design software, from the functional structure of the space, the extraction of design elements, to the shaping of home styles, etc. can be uniformly considered from the beginning of the design, to maximize the protection of the home space in the functionality and style of the harmony and unity.
(2) affected by the epidemic, HOMKOO whole cloud platform first introduced a new mode of work method, leading thousands of members across the country to actively resume work and production. The new online sales model, combined with innovative system service capabilities, so that the whole cloud members do not leave home, measuring feet to take orders, designers through non-contact measuring feet, efficient design consultation room checking, online communication and interaction contributed to the refreshment of the customer's consumer experience. Online live, offline linkage, HOMKOO whole cloud platform initiated online live form, offline members to participate, to help members quickly sign orders, help turnover.
(3) In addition, the company continues to optimize its intelligent supply chain system through systematic and technological innovations to enhance the level of supply chain synergies in order to reduce the total cost of supply chain. in the first half of 2020, the HOMKOO whole cloud supply chain system*** listed 233 new products, continuously enriching the supply chain category to meet the diversified needs of the market. The Company utilizes big data to formulate reasonable procurement strategies to ensure that fluctuations in sales forecasts can be controlled within a reasonable range level, and to ensure that the arrangement of procurement scale and frequency is synergistic with corporate demand. Through the above series of initiatives, HOMKOO whole decoration cloud 2020 first half of the channel revenue (full caliber, including furniture supporting) reached about 156 million yuan, an increase of 51% (of which the second quarter reached 119 million yuan, an increase of 94%), the second quarter of the furniture supporting a year-on-year growth of 198%.
(d) The company strengthened the innovative O2O marketing attraction mode, through the new home network MCN agencies, to develop live content innovation, seize the 5G new heights, to realize the commercial realization of the closed loop.
1, the company continues to strengthen cooperation with Tencent, Ali, Jitterbug, Shutterbug and other platforms, to build a multi-platform product-effect combination of the operating model.
In the first half of the year, the company continued to deepen its social cooperation with Tencent, focusing on the content ecological matrix combining the public number, circle of friends, small program and video number, combined with the WeChat 14.42 million fans of the Shangpin House Furnishing brand public number, 8.24 million fans of the Weiyi Customized brand public number, and more than 3.2 million fans of the "Designer A Shuang " "wuli design sister" and a number of home furnishing IP public number for marketing and attracting traffic; at the same time on-line WeChat small program 11, the first half of the total reading volume of more than 10.3 million. The first half of the company also continued to deepen cooperation with Ali and other retail platforms, the company began to create a benchmark for the home furnishing industry category of live broadcasts, to carry out a number of live activities, a single live viewers had exceeded 400,000 people.
In the first half of the year, the company's new home network MCN organization also through cooperation with jittery voice, fast hand and other mainstream short video platforms, high-speed increase of more than 40 million fans, the entire network cumulative fans 160 million. Among them, 32 million fans account 1, 10 million fans account has 3, 3 million fans account 17.
2, the company through the professional new home network MCN organization, to develop live content innovation, in advance to seize the 5G new heights.
With the company's advanced layout on the short video track, the company has created a new home network MCN agency, independently incubating and signing nearly 300 IP home furnishing professionals to open up the whole chain from video and live circle, to fan interaction and comment, to private domain fan operation and offline cash. In the 315 big brand live group purchase festival activities, independent incubation with a total of about 120 million fans level of "designer A Shuang" "wuli design sister" and other more than 20 home furnishing industry IP all out, through the" main venue + sub venue". The main venue + sub-field" form in the four mainstream live short video platform synchronized live, the country's thousands of terminal stores offline linkage with, achieved better results.
Through the above series of innovative 020 marketing attraction mode, the company in the first half of the year from the online measurement of the number of feet increased 46% year-on-year, of which the second quarter year-on-year growth of 67%. Because live streaming is shorter, faster and cheaper in linking the company and consumer paths (38% of the number of measurements in the free channel in the second quarter, up 9% from the same period last year), the company's cost of measurements sourced from online in the first half of the year fell by 36% year-on-year. Although the impact of the epidemic has lengthened the decision-making cycle of consumers, slowing down consumer demand for furniture consumption, but from the substantial growth in the number of online sizing, but also for the second half of the performance of the restoration of a solid foundation.
(E) by the epidemic impact of the company's operations have been greatly affected, but from the second quarter has basically returned to normal, but also thanks to the company's deep-rooted channel market and strong brand promotion.
1, the company continued to deepen the channel market, the force of self-employed city to join. The company through the expert class, joint Sina Home, Leju Finance - Home, Tencent Home, Netease Home and other media, invited the famous economist Ma Guangyuan, well-known financial commentator Ye Tan, famous financial observer Qin Shuo and other experts and scholars, for the "vision of the new decade" "2020 the rise of a great nation - real estate chain under the recovery of the big home" "Insight into the new future of business" and other topics. Insight into the new future of business" and other topics, organized several expert courses, so as to innovate market development. At the same time, the company has increased its investment efforts in self-operated cities to join, and recruited big businessmen to open big stores in key cities to improve the market share and investment quality of the city and enhance the company's brand exposure. As of the end of the reporting period, the company's total number of franchised stores has reached 2247 (including stores under renovation), the company's total number of directly-managed stores is 93, self-managed city franchise has reached 181 (including stores under renovation).
In the first half of the severe impact of the epidemic, in the many years of operation 020 on the basis of a good foundation, the company gives full play to its own online technology and team advantages, the use of the company's development of measuring tape treasure, communication treasure, program treasure, beauty, drawing home and other small programs, small software, combined with third-party video conferencing software, so that users do not have to leave their homes, to enjoy the non-contact measuring tape, design and non-contact program communication to confirm that meet the The customer "no contact to buy furniture" demand.
The company also strengthened the store's fine management, optimize the service process, strengthen the design management. The store innovated to carry out activities, leveraging online live broadcasting, utilizing the main session mode, categorizing invitations according to customer categories, and strengthening the linkage of stores across the country. At the same time to promote the use of hydrogen design, strengthen the room checking and other three sites of interactive scene rehearsal, before doing the program to communicate with the customer in depth, as a way to enhance the level of design services.
2, during the reporting period, the Shangpin Mansion brand launched a new spokesperson, Zhao Liying, through Zhao Liying and young groups dialogue, to the public dissemination of positive attitudes to life; the company carries out the expert large class, online and offline synchronization, activities live each more than a million viewers watch online, in the financial, comprehensive portals, videos, APP, etc. released 400 + articles, combined with media placement, to achieve brand exposure and The company continues to carry out the "Aishang Program", completing the donation of 624 sets of desks and chairs to 10 remote mountainous elementary school in Xinjiang, Guizhou, Guangxi, Guangdong, Shaanxi, Gansu and other places***.
Vivi custom brand planning released a "new generation of whole package" strategy, providing one-stop services including whole-house hardcover, whole-house softcover, whole-house matching furniture, whole-house customized furniture, kitchen appliances and other one-stop services, realizing the idea of consumers from the rough room to the turn-key; brand communication deployment of the whole country, the advertisements are placed on the national core hub (domestic), airports, high-speed railway stations, high-speed railway stations, high speed railways and so on), and the brand has been widely recognized by the public. Airports, high-speed rail stations, high-speed artillery), the cumulative coverage of 10 cities, the cumulative volume of 144, including Guangzhou Baiyun Airport (600004) T1, T2 airports full coverage, occupying the core media in first-tier key cities, such as Beijing, Shanghai, Shenzhen, etc.; the brand and the Anjuke *** with the launch of the "Cloud Gathering Guests" 1,000-store program, which has now been launched in 177 cities across the country. At present, more than 600 online stores have been opened in 177 cities across the country. Through the above initiatives, the company from the offline measurement of the number of feet in the second quarter also had a year-on-year growth of 4%, excluding Wuhan and Beijing, which were affected by the epidemic in the early stage, the second quarter of the other self-owned cities, direct + self-owned franchised terminal retail sales increased by about 14% year-on-year.
Second, the company is facing risks and countermeasures 1, the risk of franchise mode Franchise mode is conducive to the company to save capital investment, with the advantages of the franchisee for the expansion of the national marketing network, reduce the risk of investment, to achieve the rapid expansion of the company's business scale. At this stage, franchisees play an important role in the company's sales, but if the company's important franchisees change, it will adversely affect the company's operating results. The Company has managed the number, location and sales performance of its franchisees through the signing of franchise contracts with each franchisee in order to realize the Company's development strategy, but the franchisees are independent of the Company in terms of human, financial and material resources, and their interests are not fully aligned with those of the Company. Franchisees may deviate from the Company's objectives in carrying out the Company's intentions and development strategies. If a franchisee seriously violates the contract or fails to meet the Company's requirements in terms of operation and management, the Company will terminate or not renew the franchise contract with the franchisee, which may affect the Company's sales revenue. The Company has formulated guidelines for the standardized operation of franchised stores, stipulating the conditions for joining the stores, the opening form, and the unified mode of operation, and has made relevant agreements on site selection, decoration, daily operation and other aspects in the franchise contracts signed with each franchisee. With the increasing number of franchises, if the company's ability to manage the franchise does not improve accordingly, or the franchisee does not operate in accordance with the company's unified standards, will affect the company's brand image, the company's expansion of sales channels have an adverse impact. 2, the risk of increased competition in the market As an emerging sub-sector of the furniture industry, customized furniture has attracted more and more consumer groups due to its advantages of meeting consumers' personalized needs, high space utilization, and comprehensive services, etc. The customized furniture industry has shown a trend of rapid development, which will lead to the customized furniture industry within the customized closet, customized cabinets and other customized furniture enterprises of a single category to the whole-house furniture customization to expand their products At the same time, the rapid development of customized furniture has also attracted some traditional finished furniture manufacturers to the field of customized furniture transition; in addition, home furnishing enterprises, flooring companies and other home furnishing enterprises are also optimistic about the customized furniture market, have to get involved in the customized furniture industry. Therefore, the competition in the customized furniture industry will likely be further intensified by the increase in the number of customized furniture enterprises, which will lead to market competition in the customized furniture industry to gradually change from price competition to product design, production efficiency and cost, customized services, channel construction, brand marketing and other aspects of the integrated competition, so that the customized furniture enterprises to increase the investment in the brand marketing and other aspects of the business, which in turn affects the profitability of the enterprise. If the company can not continue to maintain advantages in product design, production efficiency and cost, customized services, channel construction, brand marketing, etc., the customized furniture industry market competition intensified, will likely adversely affect the company's profitability. 3, the risk of product and service quality With people's attention to the quality of healthy life, consumers are increasingly demanding the formaldehyde content of furniture products and other environmental indicators, the quality of customized furniture products. Although the company's suppliers of raw materials such as panels and other raw materials to carry out rigorous screening, and set up testing centers, in the plate raw materials into the warehouse, finished goods out of the warehouse and other aspects of the indicators of sampling and testing to ensure that the quality of products in line with national and industry standards. If the company in the supplier management, quality measures are not implemented in place and other aspects of the problem, there may be the risk that the company's product quality can not satisfy consumers, so that the company's brand and performance has been adversely affected. At the same time, customized furniture to meet the personalized needs of consumers, need to be equipped with personalized design, door-to-door measurement, on-site installation and other services, if the company to provide consumers with design, measurement, installation and other services in the process of consumer service complaints and other matters, will adversely affect the company's brand, which may adversely affect the company's product sales and operating results. 4, the risk of seasonal fluctuations in operating business The furniture industry in which the Company is located has a certain degree of seasonality, which is mainly closely related to the seasonality of domestic residents' house decoration and renovation. The company's annual operating income structure is characterized by a lower first half of the year and a higher second half of the year, especially in the first quarter of the operating results are relatively poor, the company's operating results are subject to the risk of seasonal fluctuations. 5, the risk of unexpected major public **** health events The Company's services require a lot of offline work, such as measuring, delivery, installation, after-sales service. In the face of this risk, the company will also actively carry out changes, timely put forward the "new model + technology infrastructure" strategy, the use of "live + IP" opened up a new situation in the home furnishing industry to attract customers, and make full use of online tools to provide customers with measuring, design, program communication and other services, reconstructing the home furnishing industry. Communication and other services, reconstructing the home furnishing industry online marketing, service new model, and strive to minimize the impact of the epidemic. However, if there is a national outbreak of major public **** health events similar to the first half of 2020 in the future, it will also still have a greater impact on the company's production and operation.
Third, the core competitiveness analysis During the reporting period, the company's core competitiveness has not changed, mainly in the following aspects: 1, leading the industry informatization advantages Elements software pioneered the leading virtual reality technology for the transformation and upgrading of the traditional furniture enterprises to provide the whole process of digital transformation and construction to the cloud design and big data applications as the core of the cloud technology platform to enter into the practice of the application stage. Yuanfang's industry project solutions have been expanded to cover the entire fields of civil furniture, building materials, kitchen and office furniture, and the integration of project implementation has been highly professional execution. Through continuous innovation over the years, Elements has formed an efficient software tool chain in the sales and production of customized furniture products. Yuanfang software also through the Internet, big data, cloud computing, AI artificial intelligence, agile supply chain management and other innovative technology means for the traditional home furnishing enterprises to carry out a new industrial model, reconstruct the home furnishing industry chain, value chain, innovation and change of the traditional home furnishing model and upgrade it to a modernized whole set of business model. 2、One-stop Whole House Matching Advantage With the excellent scene-based interaction capability, the information technology capability of seamless front-end and back-end data connection, and the comprehensive capability of design, sales, procurement and supply of other manufacturers of other categories of products, the company provides homemade panel furniture, while constantly broadening the category boundaries, realizing the main and auxiliary materials of home furnishing, assembled backdrops, whole-house customized furniture and ancillary home furnishings, electrical appliances, and other home furnishing all categories of one-stop matching. The company will continue to realize the one-stop matching of all categories of home furnishing such as main and auxiliary materials for home decoration, assembled background wall, whole-house customized furniture and supporting home furnishing products and electrical appliances. The company will continue to effectively integrate various types of home furnishing products, expanding the extension of categories and services, and expanding the full chain of service advantages accumulated in the field of homemade panel furniture to more product categories to truly realize the provision of one-stop whole-house matching for consumers. 3, the advantages of large-scale flexible customization In response to the shortcomings of the traditional production model, the company boldly reformed and innovated technology to create an intelligent production platform based on cloud computing, artificial intelligence, the use of industry 4.0 to open up the back end of the production and manufacturing, production technology and information technology is closely integrated, the implementation of the entire digital services, to maximize the satisfaction of consumers' personalized needs. The company utilizes leading flexible production lines, self-developed robots and automated three-dimensional warehouses for intelligent logistics to build Industry 4.0 intelligent manufacturing factories, turning "people directing machines to work" into "machines directing machines to work". The company carries out process control by using automated intelligent order reviewing, order splitting, scheduling, supply system and process control system based on QR code, and applies IoT IoT technology of transparent factory MES system to obtain the status of each production equipment, and realizes dynamic matching between production resources and production tasks based on big data and artificial intelligence algorithms, and finally realizes final production by using electronic saws, CNC machining center equipment and information transformation technology to realize the final production. Information technology transformation technology to realize the final production. 4, the advantages of the leading whole-house furniture customization Whole-house customization of the front-end design, back-end production and seamless integration of front and back-end data and other information technology capabilities have higher requirements. The company has seized the key point of whole-house furniture customization to take the lead in starting whole-house furniture customization. The company has more than 10 years of experience in whole-house furniture customization, compared with peer enterprises in recent years only began to single category to multi-category whole-house transformation, the company in the software design, review single split single scheduling, production, delivery and shipment of whole-house customization has accumulated a certain advantage in terms of experience. 5, O2O online marketing and offline sales of physical stores combined sales channel advantages At present, the company has established a "directly-managed stores + franchises" of the offline physical stores and the new home network operation of the O2O Internet marketing platform of the online channel, the organic combination of online marketing and offline sales, greatly enhancing the competitiveness of the company, in order to protect the company's rapid expansion of the marketing network laid the groundwork for a marketing network. The company's rapid expansion has laid the foundation of marketing network. The company takes NewHome.com as the online marketing platform to expand the coverage of customers, effectively divert online consumers to physical stores for experience and realize sales. Key cities to establish directly-managed stores to strengthen the control of sales channels in physical stores. Vigorous development of franchises across the country, conducive to the rapid development of the company's business scale.