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The Group recognizes the prospect of household products and decoration business; therefore it completed the acquisition of Chang Ye Holdings Limited, and its subsidiary, China Household Furniture Holdings Limited, as well as Zhongshan City Prado Style Household Company Limited ("Prado") in January 2013. Since then, the Group engages in sales of wooden household products and provides one-stop solution of home decoration in China.

Prado has cooperation with several large property developers and established good sales network. Given the demand of household products and decoration is increasing, the Group is confident on its ability and prospect of the industry.

The Group develops an all-rounded one-stop solution for household decoration, from household structure, functions, line, color, space and overall planning, design, decoration, to arrangement of decoration materials, kitchen cabinet, and furniture, etc. We aim to deliver the new concept of modern home and demonstrate all-rounded and dimensional new interior design.
Business Model
  • 1Household Showrooms
  • The Group has two household showrooms in Zhongshan, which occupied approximately 20,000 sq. f. respectively. One of the showrooms is set to complete construction in 3 to 4 months. The household showrooms provide a sense of feelings of overall home decorations for the customers. We have our own decoration team, which serve our customers from design to construction. We also have design house as partner to provide household design service for our customers.

  • 2Online Shop
  • Online shop for household was set up to provide DIY tailor-made model for customers who can design their own household products according to their preference, which will be simulated online. Customers then can assess to the real household products in the showrooms to have a better understanding on their specialties and culture.

  • 3Establish cooperation with large property developers
  • There are over 60% of property developers in China established the routine of building furnished showflats, which accounted for 27.27% on average of the total revenue of these corporations. The furnished showflats are becoming more popular and more recognized although the property industry is facing difficult environment given the unfavorable government policies. The Group can strengthen the advantage and competitiveness through a series of overall home decoration programme cooperated with the national and large property developers, design studios and renovation companies. At the same time, the Group can expand its customer base and enhance its brand value.

  • 4Transforming from wooden products distributor to one stop solution for home decoration
  • Leveraging on the seasoned experience in the wooden products industry, the Group has cooperated with several distributors of wooden products, in order to provide a one-stop solution for household development with current resources.

 

Supply Chain

Apart from the downstream one-stop solution for household development, the Group also strives to integrate upstream and midstream businesses, for a complete combination of supply chain.

The Group has established good relationship with both domestic and overseas timber wholesale markets, to maintain stable supply of timber resources, as well as to ensure the quality, cost and delivery are all under control. The timber is mainly sourced from North America, Africa and Indonesia. The Group has priority to purchase the timber in the above areas.

Looking forward, the Group has started research & development of wooden furniture since 2013, and established research & development centre, in order to standardize the production process of wooden furniture and maintain its quality.

 

Research & Development

Besides, the Group is recently developing wooden furniture and products with new functions, such as heating wooden floor, which transmits heat by patented infrared technology. The new functions are designed for Asia and overseas markets. Apart from wooden floor, the Group is also developing heating wardrobe and shoes cabinet, which can utilize ventilation technology to omit the smell elicit from the humid weather.

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