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Many home furnishings companies listed in mainland China experienced significant profit increases last year after gradually overcoming the operational challenges caused by profound adjustments within the real estate market over recent years.
For instance, a major home appliance manufacturer reported a 4.4% increase in net profit, reaching CNY19.6 billion (approximately USD2.9 billion) in 2024, with revenue growing by 5.7% to CNY302.3 billion (around USD44.3 billion). Similarly, another industry leader announced its profit surged by 14% to nearly CNY44 billion, while its revenue increased by 12% to CNY458.5 billion, nearly 43% of which originated from international markets.
The strategic approach of home furnishings suppliers has shifted; their success now hinges more on transforming through digitalization and globalization rather than relying solely on close collaboration with property developers.
This industry is mostly downstream, historically linked closely to the real estate market, according to Zhu Jiagui, President of Red Star Macalline Group, speaking about this shift. He noted that companies are now beginning to establish their own independent business cycles, moving beyond dependence on external real estate trends.
To reduce reliance on the fluctuations of the property sector, companies are exploring niche markets and expanding internationally. Introducing smart appliances, age-friendly furniture, high-end appliances, and premium design offerings helps meet diverse consumer demands for higher living standards, Zhu explained.
For example, a leading home appliance firm is developing integrated kitchen systems with a whole-house climate and energy management solution to foster a comprehensive smart home ecosystem, elevating user experience and value.
A soft furniture manufacturer anticipates turning a profit in 2025, with net earnings estimated between CNY90 million and CNY130 million (USD13.2 million to USD19.1 million). After adjusting for non-recurring items, profits are expected to be between CNY50 million and CNY70 million.
A prominent shower room supplier reported a net profit of CNY96.5 million on revenue of CNY911 million, marking increases of 39% and 11%, respectively.
Another key player in building materials machinery saw profits grow by 30% to CNY1.3 billion (about USD192 million), with revenues reaching a record CNY17.4 billion, up 38%. Notably, more than 67% of its income came from overseas markets.
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