On January 11, 2026, Qu Mei Home Group Co., Ltd. (Qu Mei Home) announced that it is expecting negative total profits, net profits attributable to shareholders of listed companies, and non-recurring net profits for the year 2025, indicating a continuing downturn in the Chinese real estate market which has deeply affected the home furnishing industry.
In its “Notice on the Expected Loss for 2025” released on January 11, Qu Mei Home stated, “The total profit for the period from January to September 2025 was -87,799,256.77 yuan (RMB, same below), and the net profit attributable to shareholders of the listed company was -66,933,627.49 yuan, with the non-recurring net profit attributable to shareholders of the listed company at -111,166,589.86 yuan. Due to the aforementioned reasons, the company expects the total profit, net profit attributable to shareholders of the listed company, and non-recurring net profit attributable to shareholders of the listed company for the year 2025 to all be negative.”
The announcement explained, “Due to factors such as overall weak market demand, the amortization of PPA formed by mergers and acquisitions, and debt-related financial costs, the company’s full-year net profit for 2025 remains under pressure.”
Similarly, another Chinese home furnishing company, Meike International Home Products Co., Ltd. (Meike Home), also anticipates a negative full-year net profit for 2025.
On January 9, Meike Home issued a “Notice on the Expected Loss and Stock Trading Risk for 2025.” The announcement stated, “The company is currently in a loss state, with operating income of 2.223 billion yuan for the first three quarters of 2025, a year-on-year decrease of 10.10%, and a net profit attributable to shareholders of the listed company of -220 million yuan. The company anticipates that the total profit, net profit attributable to shareholders of the listed company, or non-recurring net profit attributable to shareholders of the listed company for 2025 will be negative.”
In explaining the reasons for the losses, Meike Home stated, “In 2025, the company’s operations did not meet expectations due to domestic macroeconomic fluctuations and insufficient market demand.”
Unlike Qu Mei Home, Meike Home has been experiencing losses since 2022. According to a report from “Wild Horse Finance,” a subsidiary of Beijing Yangguang Shiyao Business Development Co., Ltd., Meike Home incurred its first annual loss since going public in 2022, amounting to around 289 million yuan. In 2023, the loss widened to about 463 million yuan, and in 2024, the loss increased to approximately 864 million yuan. Combined with the third-quarter loss this year, Meike Home has accumulated losses exceeding 1.8 billion yuan.
Regarding the poor performance of the home furnishing industry this year, “New Yellow River,” a publication under Jinan Daily Newspaper Group, stated on January 12 that the continued weakness in the real estate market is a key factor. The home furnishing industry has always been closely linked to the real estate market, with new home decoration being a significant source of furniture demand. In recent years, the prolonged downturn in the real estate market has directly led to an overall decline in demand for the home furnishing industry.
Jiang Han, a senior researcher at Pangu Think Tank, analyzed on “Wild Horse Finance” that the deep adjustment in the real estate industry is a fundamental external impact on Meike Home. The home furnishing industry heavily relies on the demand in the post-cycle of real estate. In recent years, the continuous decrease in the sales area of commercial housing has directly compressed the order base of Meike Home. With shrinking demand, high fixed costs, and inefficient channels all squeezing, the company has fallen into a spiral of “decreasing revenue, decreasing gross profit, and unchanging expenses.”
Meike International Home Products Co., Ltd. was established on August 16, 1995, registered in Nankang District, Ganzhou City, Jiangxi Province. It was listed on the Shanghai Stock Exchange on November 27, 2000, with its main business covering furniture manufacturing and sales, home products, and related value-added services.
Qu Mei Home Group Co., Ltd. was founded in 1993, headquartered in Shunyi District, Beijing. Its main businesses include bentwood furniture, modern solid wood series, integrated kitchens, and home storage products. The company was listed on the Shanghai Stock Exchange in April 2015.