The home furnishings sector faced significant challenges and underwent deep adjustments in 2025. As the peak annual report disclosure period arrived by the end of March 2026, over 40 listed home furnishing and appliance companies had released their financial results. Analysis reveals a stark "split performance" trend: leading appliance giants achieved revenues exceeding 300 billion yuan with strong overseas expansion, while home furnishing retailers and building materials companies generally reported substantial losses, with intensified divergence within customized furniture, finished furniture, and wood door segments.

Common performance drivers show that China's ongoing real estate market bottoming and cautious consumer demand were primary external factors hindering growth for most companies. Retail leaders like Red Star Macalline and Easyhome Smart experienced losses due to fair value changes in investment properties and declining rental income. Building materials firms including Beijing New Building Materials, Dare Power Dekor Home, and BBMG Corporation were constrained by weak demand and price wars in core businesses like gypsum boards, flooring, and cement. Wood door and finished furniture manufacturers such as Jiangshan Oupai and Royal Furniture saw revenues halve and losses widen.

However, bright spots emerged amid the downturn. Companies like Keda Industrial Group, Haier Smart Home, and Midea Group achieved key growth through global layouts and diversified operations (new energy, robotics, etc.). Olo Home and Rosery Island gained market share in the存量 market with differentiated products. Aibang Ceiling successfully returned to profitability through stringent cost control. China LESSO and SLD GROUP offset domestic pressures with overseas production capacity and international projects.

Looking ahead to 2026, competition in the home furnishings industry will intensify further. Companies with overseas production capacity, technological advantages, or high-end brand barriers are poised to lead, while those reliant on traditional channels and single product categories must accelerate transformation to survive.

**Home Furnishing Retailers: Revenue Declines Widespread, Cash Flow and Business Innovation Key to Survival** In 2025, the home furnishing retail segment was a major underperformer. Disclosed annual reports from Red Star Macalline, Easyhome Smart, and Chengdu Fusen Noble-House Industrial Co.,Ltd. all showed revenue declines, with some facing losses in the tens of billions. The core challenge for retailers is their heavy-asset model, which suffers from asset depreciation and rental income drops during cyclical downturns. Despite efforts to diversify into appliances, automobiles, and wellness, these new ventures have yet to fully offset declines in core operations.

Notably, significant losses at Red Star Macalline and Easyhome Smart were primarily due to fair value changes. Future recovery hinges on leveraging financial tools like REITs to revitalize existing assets and improve occupancy rates.

**Red Star Macalline: Revenue Falls, Losses Widen, Diversification Explores New Growth** On March 31, Red Star Macalline disclosed its 2025 annual report. Annual operating revenue was 6.582 billion yuan, down 15.85% year-over-year. Net profit attributable to shareholders recorded a loss of 23.722 billion yuan, widening 695.12% from the previous year. Losses were mainly driven by substantial fair value losses on investment properties and increased asset and credit impairment losses.

Self-operated and leasing income accounted for 4.881 billion yuan, or 74.2% of operating revenue. Commissioned management income was 1.191 billion yuan, and construction decoration service revenue was 108 million yuan. Net operating cash flow surged 277.34% to 816 million yuan from 216 million yuan in 2024. Gross margin rose 1.54 percentage points to 59.80%.

Operating expenses decreased by 779 million yuan to 3.777 billion yuan, with the expense ratio dropping 0.86 percentage points to 57.38%. Sales expenses fell 18.59%, management expenses dropped 24.22%, R&D expenses declined 64.42%, and financial expenses decreased 13.28%.

As of December 31, 2025, the company operated 74 self-owned malls with an average occupancy rate of 85.0%, and 218 commissioned malls with varying management depths at an 82.9% occupancy rate. It also managed 7 home furnishing malls through strategic partnerships and franchised 19 home furnishing and building materials projects, totaling 345 stores/industrial streets.

The appliance section area reached 1.405 million square meters, with leasable area proportion rising to 10.1%. New retail furniture category area grew 51.5% year-over-year, becoming the fastest-growing secondary category. The M+ high-end home design center totaled 708,000 square meters, driving over 150 million yuan in sales. The automotive business area doubled from 160,000 to 320,000 square meters. The company also tapped new markets by launching the Shanghai "Hill - Red Star Macalline Silver Aesthetics Living Hall" to capture the wellness home furnishing segment.

**Easyhome Smart: From Profit to Loss, Plans Private REITs to Ease Pressure** On March 31, Easyhome Smart released its 2025 performance report, showing annual revenue of 11.348 billion yuan, down 12.48% year-over-year. Net profit attributable to shareholders was a loss of 999 million yuan, down 229.81%.

The company attributed the results to ongoing real estate market adjustments, cautious home furnishing demand, and consumption structure divergence, leading to industry-wide contraction and restructuring. Mall leasing and rental income were pressured by market changes and specific company incidents.

The company plans to apply for and issue a private REITs program for its held real estate assets.

**Chengdu Fusen Noble-House Industrial Co.,Ltd.: Revenue and Net Profit Decline, Financial Business Boosts Cash Flow** On March 30, Chengdu Fusen Noble-House Industrial Co.,Ltd. released its 2025 annual report. Revenue fell 16.14% to 1.199 billion yuan, while net profit attributable to shareholders dropped 19.52% to 555 million yuan. Gross margin was 62.96%.

Core market leasing and service revenue declined 13.91% to 1.073 billion yuan, accounting for 89.51% of revenue. Decoration engineering revenue plummeted 37.30% to 59 million yuan, significantly dragging overall performance.

Net operating cash flow surged 52.79% to 1.246 billion yuan, primarily due to recoveries in financial business: 434 million yuan net from factoring and 173 million yuan net from micro-loans.

**Appliance Industry: Giants Lead Against Trend, Globalization and Diversification Key to Success** In contrast to the retail sector's weakness, the appliance segment demonstrated strong anti-cyclical resilience, with a pronounced "strong get stronger" effect. Haier, Midea, Xiaomi, TCL Smart Home, Bear Electric, XGIMI Technology, and Buydeem all achieved revenue and profit growth. The common strategies of leaders Haier and Midea involved diversifying globally to mitigate single-market risks, expanding into robotics, building solutions, and new energy for secondary growth, and utilizing multi-brand portfolios to cover all consumer tiers.

However, integrated stove manufacturers faced widespread crises, exposing vulnerabilities from reliance on single product categories and new home decoration. Performance forecasts indicate that Mars Professional, Etin Intelligent, and Zhejiang Meida experienced profit declines or losses, while Shuai Feng Electric hit ST warning levels. Future competition will shift from single products to ecosystem capabilities and global supply chain strength.

**Haier Smart Home: Revenue Breaks 300 Billion Yuan, Full Ecosystem Leads Industry** On March 26, Haier Smart Home released its 2025 annual report. Revenue surpassed 300 billion yuan for the first time, reaching 302.347 billion yuan, up 5.71% year-over-year. Net profit attributable to shareholders grew 4.39% to 19.553 billion yuan, a record high. Net operating cash flow was 26.003 billion yuan, 1.33 times net profit.

Amid domestic demand shrinkage and intensified competition, Haier broke industry boundaries by developing new ecosystems like integrated kitchens and HVAC, creating comprehensive user experiences. In the kitchen ecosystem, Haier refrigerators held a 47.7% market share, reinforcing leadership. Haier kitchen appliances led in built-in range hood sales and drawer dishwasher share. In HVAC, Haier's residential air conditioner global sales grew 14.8%, leading the industry. Commercial air conditioners achieved double-digit growth in multiple categories. Haier water heaters held a 32.5% market share, and washing machines increased share by 2 percentage points to 47.4%.

The company also seized opportunities in AI and silver economy by developing housekeeping robots and smart wellness industries, opening new growth avenues.

Haier's multi-brand strategy effectively served diverse user segments. Casarte remained the high-end leader for the tenth consecutive year with double-digit growth in 2025. Leader brand revenue surpassed 10 billion yuan for the first time, up 30%, driven by innovative products like the lazy triple-drum washer. Haier brand led in both online and offline market share, launching the industry's first L4-level smart suite "Seeker" at AWE, setting new standards for whole-house intelligence.

Overseas revenue grew 8.3% in 2025. In the U.S., Haier's high-end brand grew 7% year-over-year, maintaining its top position for four years. European revenue rose 19.9%, with Haier leading Chinese brands in major appliance share. In Australia/New Zealand, Haier and Fisher & Paykel jointly led the major appliance market. Japanese revenue increased 10.3%, while emerging markets saw growth of 13.4% in Southeast Asia, 23.2% in South Asia, and 55.8% in Middle East/Africa.

**Midea Group: Revenue and Profit Rise, Transition to Tech Group Shows Results** On March 30, Midea Group disclosed its 2025 annual report. Operating revenue reached 458.5 billion yuan, up 12% year-over-year. Net profit attributable to shareholders grew 14.03% to 43.945 billion yuan, continuing dual growth.

Diversified business synergy supported performance. Smart home appliances, the core business, generated 299.927 billion yuan in revenue, up 11.28%. Building technology was the standout, with revenue surging 25.72% to 35.791 billion yuan. Robotics and automation revenue grew 8.05% to 31.011 billion yuan. Industrial technology and other innovation businesses contributed 27.232 billion yuan and 28.719 billion yuan, respectively. The company is steadily transitioning from a traditional appliance maker to a multi-business technology group.

Global expansion continued, with overseas revenue rising 16% to 195.9 billion yuan, accounting for 42.93% of total revenue. Overseas market growth not only offset domestic volatility but also became a key long-term engine.

**Panel and Hardware Industry: Sector Under Pressure, Companies Optimize Structure for Breakthrough** As upstream segments in the post-real estate cycle, panel and hardware industries felt direct impact. Profit collapses at Dare Power Dekor Home and sustained losses at Fenglin Group reflected the failure of volume-driven strategies in traditional wood-based panels and flooring. Companies like Tute and Jusen maintained growth through product upgrades (functional hardware grew over 76%) and domestic market focus.

This divergence indicates that upstream players can no longer rely solely on scale expansion. Transition to high-value categories is essential, while caution is needed against capital drains from cross-sector investments like new energy projects.

**Fenglin Group: Revenue Down, Losses Widen, Particle Board Share Improves Profitability** Fenglin Group released its 2025 annual report, showing operating revenue of 1.697 billion yuan, down 16.00% year-over-year. Net profit attributable to shareholders was a loss of 128 million yuan, widening 7.09%.

The company primarily produces and sells wood-based panels and engages in afforestation, with an annual capacity of approximately 1.3 million cubic meters. Fiberboard revenue rose 4.56% to 1.123 billion yuan, while particle board revenue increased 10.23% to 822 million yuan. The higher share of particle board sales improved overall profitability. Revenue in South China grew 7.89% to 1.235 billion yuan, and East China revenue increased 5.23% to 711 million yuan.

Performance improvements stemmed from higher capacity utilization, optimized production, enhanced product mix favoring high-value items, and effective cost control. Financial expenses fell 21.26% due to reduced borrowing.

**Dare Power Dekor Home: Net Profit Plummets 90%, Multiple Subsidiaries in Loss** On March 30, Dare Power Dekor Home released its 2025 annual report. Revenue fell 14.49% to 4.575 billion yuan, while net profit dropped 90.41% to 13.337 million yuan. Net operating cash flow was negative 34.5476 million yuan.

Four subsidiaries reported losses. Fully-owned subsidiary Power Dekor Group incurred a net loss of 133 million yuan, widening 825.16% due to lower sales and increased impairments. Dare Wood (Jiangxi), also fully-owned, reduced its loss to 10.3318 million yuan as it ceased operations. Dare Wood (Heilongjiang) swung to a loss of 6.3043 million yuan from a profit, affected by prior-year asset disposal gains. Dare New Energy Materials (Guangxi), a controlled subsidiary, reported an operating loss of 16.9279 million yuan during construction and preparation phases.

**Tute: Revenue Rises Slightly, Net Profit Edges Down** On March 2, Guangdong Tute Precision Hardware Technology released its 2025 annual report. Revenue increased 2.74% to 934 million yuan, while net profit fell 6.04% to 124 million yuan.

**Jusen Precision: Domestic Sales Offset Export Decline, Functional Hardware Surges** On March 31, Guangdong Jusen Precision Technology disclosed its 2025 results. Revenue grew 2.44% to 797 million yuan, with net profit up 0.30% to 62.262 million yuan.

Comprehensive gross margin rose 0.46 percentage points to 26.39%, while net margin dipped 0.17 points to 7.82%. Domestic revenue increased 6.72%, accounting for 55.99% of total, while overseas revenue fell 2.17% to 39.78%. Basic hardware revenue declined 0.1%, representing 88.83% of total, while functional hardware surged 76.25% to 5.66%.

**Ceramic and Sanitary Ware Industry: Globalization and Differentiation Drive Growth for Keda and Rosery Island** The ceramic and sanitary ware segment was a rare bright spot in 2025. Successful cases highlight two clear paths: expanding overseas for growth, as seen with Keda Industrial Group leveraging African and South American capacity to export excess manufacturing capability (overseas building materials revenue grew over 70%); and moving upmarket through differentiation, exemplified by Rosery Island capturing the high-growth panoramic door segment via project channels, with profit growth far exceeding revenue.

In contrast, traditional domestic sanitary ware firms remained mired in price wars and project bad debts. The message is clear: go global or go premium—there is no middle ground.

**Keda Industrial Group: Record Performance, Multi-Sector Synergy** Keda Industrial Group's 2025 annual report, released on March 27, showed historic highs. Revenue surged 38.01% to 17.389 billion yuan, while net profit attributable to shareholders grew 30.07% to 1.309 billion yuan. Adjusted net profit rose 30.20% to 1.199 billion yuan. Net operating cash flow jumped 226.47% to 1.819 billion yuan.

Ceramic machinery excelled, with new subsidiaries in Brazil, Vietnam, and Egypt, and optimized offices/warehouses in Algeria, UAE, and Mexico. Overseas orders exceeded 60% of ceramic machinery bookings, with strong performance in Southeast Asia, Middle East, and South Asia, and growth in East Asia and the Americas.

Parts and consumables orders accounted for 25% of ceramic machinery bookings, with overseas orders up over 30%. The Turkey Bozuyuk factory was established. Universal products like hub forging presses and soft magnetic presses secured over 500 million yuan in orders.

Overseas building materials revenue soared 73.61% to 8.185 billion yuan, with gross margin up 4 points to 35.26%, driven by capacity releases and optimized pricing. Projects in Kenya and Côte d'Ivoire commenced, with expansions and a Peru glass project underway. Keda now operates in 7 African countries with annual capacity of ~200 million sqm ceramic tiles, 2.6 million sanitary ware pieces, and 400,000 tons glass.

In 2026, Keda accelerated its "large building materials" strategy. It plans to acquire the remaining 51.55% of Tecfar International for full control of overseas building materials operations. A new float glass line in Ghana will strengthen West African capacity.

In lithium battery materials and new energy, Keda deepened partnerships with leading energy storage firms. Fujian and Chongqing artificial graphite lines boosted sales to 114,400 tons, with revenue up 170% to 2.384 billion yuan, achieving profitability. Associate company LANKE Lithium produced 41,000 tons of lithium carbonate, contributing 318 million yuan to Keda's net profit, up 36.56%.

**Rosery Island: Panoramic Door Business Surges 64%** On March 27, Rosery Island released its 2025 results. Revenue grew 10.71% to 911 million yuan, while profit jumped 39.44% to 96.4949 million yuan.

Panoramic door revenue increased 63.62% to 66.3354 million yuan, with cost rising 60.33% to 41.9983 million yuan, driven by project channel expansion. Lower material costs helped margins.

Net operating cash flow surged 743.57% to 140.1766 million yuan, due to increased project revenue and advance payments.

**Building Materials Industry: Demand Pressure, Leaders Accelerate Overseas and Diversification** The building materials sector was among the hardest hit by real estate declines in 2025, but strategic differences determined performance outcomes.

BBMG Corporation's "volume growth, price decline" concrete business and high short-term debt exposed vulnerabilities of heavy-asset, high-leverage models at cycle bottoms. Beijing New Building Materials, despite a 70% market share, could not avoid price wars, showing even dominance cannot counter demand collapse. China LESSO's overseas factories and Aibang Ceiling's cost-control turnaround exemplify survival strategies: expand abroad or retrench.

Note that several building materials firms relied on asset sales to maintain paper profits, an unsustainable "stopgap" approach.

**BBMG Corporation: Real Estate Drags Performance, Cash Flow Strains** On March 30, BBMG Corporation reported 2025 revenue of 91.113 billion yuan, down 17.7%. Net loss was 1.507 billion yuan, roughly flat year-over-year, aided by non-recurring gains offsetting operating losses.

Cement sales volume was 73.32 million tons (excluding JVs: 4.63 million tons), down 2.85%. Clinker sales volume was 10.13 million tons (excluding JVs: 540,000 tons), up 13.41%. Concrete sales volume rose 20.3% to 15.688 million cubic meters, but average price fell 25.5 yuan to 279.3 yuan/cubic meter. Real estate development and operations revenue plummeted 64.88% to 11.498 billion yuan, with profit turning to a loss of 186 million yuan.

Short-term debt pressure is severe: short-term borrowings were 25.68 billion yuan, current portion of non-current liabilities 25.25 billion yuan, against cash of 16.22 billion yuan, leaving a 34.7 billion yuan gap.

Notably, the difference between net profit and adjusted net profit was 2.579 billion yuan, roughly equal to annual asset disposal gains. Non-recurring gains totaled 2.579 billion yuan, including 2.003 billion yuan from non-current asset disposals. Without these, reported losses would be much larger.

**Beijing New Building Materials: Gypsum Board Price Wars Drag Profits** On March 25, Beijing New Building Materials released its 2025 annual report. Revenue fell 2.09% to 25.28 billion yuan, while net profit dropped 20.31% to 2.906 billion yuan, breaking years of steady growth.

Core weakness was gypsum board operations. Revenue for this segment fell 8.73% to 11.963 billion yuan, with gross margin down 1.61 percentage points. Supporting龙骨 revenue declined 13.74%.

Despite a 70% market share, industry volume declines and competition triggered price wars, reducing average gypsum board price by 7.7% and compressing margins. New housing starts falling over 10% and weak decoration demand exacerbated core business pressure.

**China LESSO: Overseas Revenue Share Rises to 9.6%** China LESSO's 2025 annual report showed revenue of 24.315 billion yuan, down 10.03%. Profit attributable to owners fell 25.08% to 1.262 billion yuan. EPS was 0.41 yuan.

Plastic pipe system sales volume was stable year-over-year. Core piping business revenue was 20.784 billion yuan, accounting for 85.5% of total revenue.

The standout was overseas business: revenue grew 2.2% to 2.336 billion yuan, representing 9.6% of total. This followed accelerated global capacity deployment: Ethiopia production base launched in May 2025, Philippines in September, Uzbekistan in November. Southeast Asia, Africa, and North America now form a synergistic development pattern.

**Aibang Ceiling: Cost Control Achieves Turnaround** On March 30, Zhejiang Aibang Integrated Ceiling released its 2025 annual report. Revenue fell 20.24% to 498 million yuan, but net profit turned positive at 12.3705 million yuan, up 111.02%.

Gross margin rose 0.92 percentage points to 25.74%. Net margin improved 20.18 points to 1.94%. Revenue breakdown: basic modules 47.23%, functional modules 34.75%, wall cabinet modules 9.04%, auxiliary modules 6.25%, other 2.73%.

Operating expenses fell by 58.1256 million yuan to 117 million yuan, with the expense ratio down 4.56 points to 23.47%. Sales expenses dropped 47.63%, management expenses fell 14.24%, R&D expenses declined 29.68%, while financial expenses rose 17.25%.

**Customized Home Furnishings: Olo Home Benefits from Design Premium, Net Profit Soars** On March 30, Nanjing Olo Home released its 2025 annual report. Revenue rose 1.29% to 1.451 billion yuan, while net profit surged 43.56% to 174 million yuan.

Whole-home customization revenue grew 11.99% to 1.179 billion yuan, accounting for 81.27% of total. Overall kitchen cabinets contributed 272 million yuan, or 18.73%.

Distribution channel revenue increased 11.46% to 1.122 billion yuan, representing 77.31% of total. Direct sales revenue rose 0.76% to 247 million yuan (17.06%). Project business revenue was 59.9406 million yuan (4.13%).

Olo Home's comprehensive gross margin held steady at 46.3%, while net margin rose 3.5 points to 12%. Retail channel revenue grew 9.4%, while project channel revenue fell 62.5%. Original design and differentiated branding supported retail resilience.

**Finished Furniture: Royal Furniture Revenue Declines, Losses Widen** On March 31, Royal Furniture released its 2025 annual report. Revenue fell 27.50% to 381 million yuan. Loss attributable to owners widened 80.27% to 617 million yuan.

Overall gross margin dropped from 6.7% in 2024 to 5.0% in 2025. Gross profit fell to 19 million yuan from 35.4 million yuan. Declines were due to weaker macro conditions, reduced furniture demand, and real estate cycle impacts on interior decoration margins.

**Wood Door Industry: Jiangshan Oupai Net Margin Falls, Export Growth Offsets Domestic Slump** On April 2, Jiangshan Oupai released its 2025 annual report. Revenue plummeted 45.8% to 1.62 billion yuan. Net loss attributable to shareholders was 195 million yuan, down 279.1%. This marks the second consecutive year of decline and the second loss in four years. In 2024, revenue and net profit fell 19.73% and 72.08%, respectively.

Core wood processing revenue dropped 47.30% to 1.529 billion yuan. Laminated molded door, solid wood composite door, and cabinet revenues fell 54.72%, 52.41%, and 48.74%, respectively. Only加盟 service fees grew 18.51% to 146 million yuan.

Distribution and direct project channel revenues fell 51.16% and 63.19%, respectively, while加盟 service channels grew.

Domestic sales plunged 51.21%, reflecting severe market weakness. Exports were the sole growth area, surging 62.47%, but gross margin fell 15.54 percentage points.

Jiangshan Oupai's net profit margin continued declining: 10.35%, 3.6%, and -12% over the past three years.

The company also announced the resignation of Director, Deputy General Manager, and CFO Wu Shuiyan, sister of controlling shareholder and Chairman Wu Shuigen.

**Design Services: SLD GROUP Gains from Overseas Projects** On March 19, SLD GROUP released its 2025 annual report. Revenue grew 15% to 423 million HKD. Profit attributable to owners surged to 11.2 million HKD from 1.8 million HKD.

Revenue growth was driven by trade income from interior furnishings and service income from interior design. Gross margin slightly decreased from 39.9% to 38.2% due to higher contribution from the SLL division and lower JHD division revenue.

New contract value rose from 564 million HKD to 589 million HKD, mainly from the SLL division. International strategy secured new overseas hotel projects, with hotel, F&B, and hospitality segment revenue up 85.7%. However, JHD division commercial project contracts fell significantly due to weaker Chinese commercial demand.