Chengdu Fosenmei Home Furnishing Co., Ltd. (Fosenmei) announced on the evening of July 24 that they had received a notification that the company’s chairman, Liu Bing, had been placed under detention. This marks the third chairman in the furniture industry to be detained this year. The news quickly became a hot topic on the Chinese mainland.
In the announcement, Fosenmei stated that they had received the notification of the chairman Liu Bing’s detention, and during his period of detention, the vice-chairman, Liu Yunhua, would fulfill the duties of the chairman. The announcement assured that the detention of the chairman would not have a significant impact on the company’s production and operation.
On July 25, Fosenmei’s stock price opened lower and closed at 12.31 yuan (RMB) per share, a decrease of 4.87% for the day.
This is the third senior executive in the home furnishing industry to be placed under detention this year. On April 18, Jueranhui Home announced that its actual controlling shareholder, Chairman, and CEO Wang Linpeng had been detained by the supervisory committee of Jianghan District, Wuhan City. On May 13, Red Star Macalline Home Furnishing Group Co., Ltd. revealed that their director and general manager, Che Jianxing, was under investigation and detention by the Yunnan Provincial Supervisory Commission. In July, Che Jianxing had already resigned from his position as general manager.
In response, Wang Jianguo, an expert in China’s home, design, and internet industry, analyzed on July 26 to the “Daily Economic News” that this might involve anti-corruption actions related to the real estate and financial industries. Companies like Fosenmei are classified as market-oriented enterprises closely tied to the real estate industry, as they operate downstream the real estate sector and function as platforms. These companies have certain small loan systems and may retain funds on their platforms. In situations where regulatory oversight is insufficient, misappropriation may occur. Wang Jianguo believes that when the capital dividends of the upstream industry (real estate) diminish in the new cycle, companies need to withstand their own tests. Moreover, listed home furnishing companies are facing significant downward pressure on performance.
Public records show that Fosenmei was established on December 7, 2000, as a limited liability company. Its main business covers wholesale and retail of decorative materials, building materials, and market operation management.
According to information from the “Daily Economic News” on July 26, Fosenmei has experienced a continuous decline in revenue for six consecutive quarters since the fourth quarter of 2023. In 2024, the company achieved an operating income of 1.43 billion yuan, a year-on-year decrease of 6.18%; the net profit attributable to the parent company was 690 million yuan, a year-on-year decrease of 14.39%. In the first quarter of 2025, Fosenmei’s revenue further dropped to 330 million yuan, a decrease of 13.19% year-on-year; the net profit attributable to the parent company was 148 million yuan, a reduction of 21.06%.
A detained individual refers to a public official or relevant person involved in a case who has their personal freedom restricted and is under investigation by a supervisory authority for suspected serious violations of duty or crimes related to their duties.