Red Star Macalline Home Group Co., Ltd. (Macalline) reported a loss of 1.9 billion yuan in the first half of 2025, marking the company’s second consecutive year of losses. The founder’s detainment and frequent changes in the core management team have drawn attention to the company’s operations from the public.
On September 16, Macalline issued a statement about the resignations of the board secretary, deputy general manager, joint company secretary, and authorized representative in Hong Kong. Subsequently, on September 18, Macalline held an online performance briefing to provide explanations regarding these resignations.
In response to inquiries from China Times, Macalline stated that the company’s continuous losses were mainly attributed to market fluctuations, changes in fair value of investment properties, and asset impairment, emphasizing that these losses would not affect the company’s ability to generate cash flow from its operational activities. According to Macalline, these losses are unrelated to the changes in the management team.
Prior to this, the company’s 2025 semi-annual report revealed a decline in both revenue and net profit for the first half of the year. As of June 30, 2025, Macalline achieved operating income of 3.337 billion yuan, a 21.0% decrease compared to the same period last year. The company’s gross profit was 2.052 billion yuan, a decrease of 19.9% year-on-year, indicating a persistently low profitability level. The net profit attributable to the shareholders of the listed company was -1.9 billion yuan.
Following consecutive losses in 2023 and 2024, Macalline recorded another loss in the first half of this year. In 2023 and 2024, the net profits attributable to the shareholders of the listed company were -2.216 billion yuan and -2.983 billion yuan, respectively.
Simultaneously with the decrease in net profit, the company’s debt pressure has been on the rise. As of June 30, 2025, Macalline’s total liabilities amounted to 68.13 billion yuan, with total assets of 115.4 billion yuan, resulting in an asset-liability ratio of 59.02%, compared to 57.40% at the end of the previous year.
The company’s semi-annual report attributed the decline in net profit to various factors affecting the home building materials industry in the first half of 2025. The industry experienced supply fluctuations and a decline in demand, leading to a weakening of the demand in the home retail market, hence causing a temporary impact on the operation of the current commercial spaces, with a decrease in rental rates and rental incomes.
In addition to the resignations of the board secretary, deputy general manager, and joint company secretary in Hong Kong, on May 13 of this year, the former director and general manager Che Jianxing was investigated and placed under detention. The changes in management and the ongoing losses have raised doubts regarding the correlation between the two.
Public records indicate that Red Star Macalline Home Group Co., Ltd. was established on June 18, 2007, with its headquarters located in Pudong New Area, Shanghai. It is principally engaged in the furniture manufacturing industry and provides services such as management services for invested enterprises, corporate management consulting, product information consulting, and design planning and management services for operating home furnishing stores.
As of the close of trading on September 19th, Macalline’s stock price on the A-share market was 2.97 yuan per share, a decline of 2.62%, with a total market value of 12.934 billion yuan.