Cross-Border Home Furnishing Brand Ziel Home Achieves Annual Revenue of CNY 6 Billion

Recently, the cross-border home furnishing brand Ziel Home (301376:SZ) released its annual financial report for 2023. The data reveals that in 2023, the company's operating income reached CNY 6.074 billion, a year-on-year increase of 11.34%, with a net profit of CNY 413 million, marking a 65.08% year-on-year growth. The basic earnings per share were CNY 1.08. Notably, the fourth-quarter revenue was CNY 1.938 billion, showing a 45% year-on-year increase. Ziel Home, which went public on the ChiNext board of the Shenzhen Stock Exchange in June 2023, is one of the leading companies in China's internet home furnishing sector and is often dubbed as "the online IKEA" by analysts.

The financial report indicates that Ziel Home had a strong financial performance in 2023. Apart from achieving double-digit growth in revenue and net profit, its adjusted net profit reached CNY 432 million, a 71.8% year-on-year increase. The net cash flow from operating activities amounted to CNY 1.499 billion, marking a 51.7% year-on-year increase. The return on equity was 16.8%, representing a growth of 1.8%.

Benefiting from its robust growth momentum, Ziel Home distributed dividends of up to 201 million yuan to its shareholders in 2023, which accounted for 48.6% of its net profit for the year. Furthermore, its earnings per share also increased to 1.08 yuan, reflecting a 56.5% year-on-year growth.

In terms of specific product categories, the furniture series, a traditional mainstay of Ziel Home, remained the company's largest revenue-generating business, achieving an annual revenue of CNY 2.71 billion, a 4.8% year-on-year increase, and a 26.1% increase in the second half of the year. The home series closely followed, contributing CNY 2.285 billion in annual revenue, a 22.3% year-on-year increase, and a 38.3% increase in the second half of the year. The pet series achieved an annual revenue of CNY 519 million, a 37.3% year-on-year increase, and a 50.1% increase in the second half of the year. The courtyard series was the only major sales category at Ziel Home that experienced a year-on-year decline, with an annual revenue of approximately CNY 466 million, marking a 12.3% decrease.

In terms of distribution, Amazon remained Ziel Home's primary sales platform, contributing CNY 4.559 billion in revenue, an 11.6% year-on-year increase. The German e-commerce platform OTTO emerged as Ziel Home's second-largest sales channel, generating CNY 250 million in revenue in 2023, representing an impressive 81% year-on-year growth.

As a crucial branding tool, Ziel Home's independent website maintained a steady development pace, achieving a revenue of CNY 136 million in 2023, a 22.1% year-on-year increase.

Furthermore, it is worth mentioning that Ziel Home has made progress in its overseas omnichannel retail layout. In December 2023, the company's products officially entered the offline channel HOBBY LOBBY in North America.

In terms of regional markets, in 2023, Ziel Home's most significant core market was in Europe, with a revenue of CNY 3.728 billion, a 21.6% year-on-year increase. Following this, the North American market achieved a revenue of CNY 2.173 billion, representing a slight decrease of 3.2% year-on-year. Japan was Ziel Home's third-largest market, contributing only CNY 48 million in revenue, a 3.2% year-on-year increase compared to the previous year. In other markets, Ziel Home's revenue was only CNY 34 million, marking a 52.2% year-on-year increase.

In terms of research and development expenses, Ziel Home's R&D investment for the full year of 2023 amounted to approximately CNY 60.07 million, a 33.5% year-on-year increase. In fact, since 2019, Ziel Home has consistently increased its investment in R&D for five consecutive years. In terms of R&D effectiveness, in 2023, Ziel Home added 9 new international design awards, obtained 190 new global patent authorizations, and secured 22 software copyrights.

The financial report indicates that in the future, Ziel Home will continue to anchor its core principles of "product series, omnichannel, and unified inventory," driving product upgrades, brand upgrades, logistics efficiency, and production efficiency, and implementing the strategic positioning of "comparable to IKEA, attractive and affordable."

Ziel Home was established in 2010 and owns three major product brands in the home furnishing sector: SONGMICS, VASAGLE, and Feandrea for pet home furnishings. Since its inception, its products have entered over 60 countries and regions in Europe, North and Central America, Asia, and have served over 20 million households globally.

As of the time of writing, Ziel Home's stock is priced at CNY 22.85 per share, with a total market value of CNY 9.186 billion.