Recently, Sleemon announced its interim results. The announcement showed that the company achieved operating income of 3.107 billion yuan from January to June 2021, an increase of 57.25% from last year' s 1.976 billion yuan.

According to Sleemon' s revenue breakdown, the company' s business is mainly divided into independent brand retail business, independent brand engineering business and OEM processing business. Among them, self-owned brand retail business is the main component of the company' s revenue, which is 1.992 billion, accounting for nearly 64% of the company's total revenue. This business is currently growing rapidly, an increase of 107% compared to the 2020 interim report, and an increase of 98% compared to the 2019 interim report.

Self-owned brand retail business includes offline store sales and online platform sales. 

At present, as the company' s brand power is gradually improved, the offline franchisee system is becoming more and more perfect, the online platform operation model continues to innovate, and the company's independent brand retail channels have been rapidly expanded. 

As of the end of the interim report period, the company has 2576 Xilinmen specialty stores, 898 Ximeng distribution specialty stores, 489 M&D sofa specialty stores, and 54 Chateau d’Ax living room furniture specialty stores. The interim report showed that the company' s own brand offline retail business revenue was 1.57 billion, an increase of 114% compared with the 2020 interim report, and an increase of 88% compared with the 2019 interim report.

The online channel Sleemon brand has formed in-depth cooperation with core e-commerce platforms such as Tmall, JD.com, and Suning.com; at the same time, it has deployed new channels such as supermarkets, home appliances, and home improvement in advance. Currently, it firmly seizes the first palce of mattresses of Tmall, JD.com and Suning.

The independent brand engineering channels mainly cover hotel and real estate business. The main cooperation units are large-scale real estate groups, high-star hotel management companies, chain hotel groups, hotel-style apartments and other customers. At the same time, they are exploring new business channels such as cruise ships, military, schools, and establishing long-term and in-depth cooperative relationships with them to provide them with beds. Mats, beds, other related ancillary products and wooden furniture production and installation engineering services.

Related business sub-items show that the core of the company' s business growth is currently the independent brand retail business. Although the company' s agency processing business has also maintained growth, the growth rate is significantly slower than the independent brand retail business. The self-owned brand engineering business has only a single-digit growth, and even a slight decline from 2019.

In addition, it’ s worth noting that the company’ s To C-based revenue structure, price increases for some products, and good management and control of period expenses have effectively reduced the pressure on raw material price increases during the reporting period.

According to the company, the production base in Henan has similar products to other bases, and our production capacity has been relatively tight. Therefore, we are expanding at a scale of about 40% every year, and there has been some investment in the construction projects. We now also hold some Evergrande commercial papers. If Evergrande cannot redeem it in the future, we will consider taking back 40% of Evergrande’ s equity.