Over 90 million dollars in sales! Home appliance and home furnishing enterprises struggling to turn losses around have already begun selling off assets.

(Article by Sun Meixin, Edited by Zhang Guangkai)

When the home furnishings and home appliance industries face ongoing declining performance pressures, some companies are attempting to reverse their downturns by selling assets such as parks and factories.

On March 10, well-known domestic smart refrigeration appliance company Aucma announced the transfer of a 55% stake in Qingdao Aucma Information Industrial Park Co., Ltd. for nearly 92.46 million yuan. After the transfer, it is expected to bring Aucma an estimated pre-tax investment gain of about 33.91 million yuan.

Aucma is a well-known domestic manufacturer of smart cold chain equipment and smart home appliances, and is also a state-owned enterprise in Qingdao. In the 1990s, its freezer sales ranked first nationwide, earning it the nickname “King of Electric Freezers.”

However, with the rise of emerging domestic appliance brands, Aucma’s competitiveness in the consumer market has declined, and its performance has weakened.

In January this year, Aucma also issued a pre-loss warning, estimating a net loss attributable to the parent company of 170 million to 220 million yuan in 2025, further widening the loss compared to 2024.

Coincidentally, another home furnishing company, Pinuo, also reported losses and sold its factory buildings for over 90 million yuan.

According to Pinuo’s announcement, in February this year, the company listed for sale the land use rights and above-ground factory buildings of a wholly owned subsidiary in Tianjin, with a total transaction price of about 95 million yuan.

This sale also provides Pinuo with a significant one-time income. It’s worth noting that this custom home furnishing listed company, which recently changed ownership, reported a projected net loss attributable to the parent of about 35 to 45 million yuan last year.

Perhaps this early-year “drastic measure” of selling factory buildings will help boost Pinuo’s overall performance this year.

In stark contrast is Hango Group, a home hardware company that went public on the A-share market last year. It announced plans to acquire a 252 million yuan industrial land in Shunde, Foshan, to build a new production base for future capacity planning.

Asset acquisition or sale measures reflect the development trend of companies. When a company is in a growth phase, land acquisitions can support expansion; when in decline, asset values can at least serve as a safety net for operations.

Dividing Assets through Park Equity, Aucma and Partners Share the Assets

A closer look at Aucma’s park sale transaction reveals it resembles more of an asset division with partners.

From the sale information, the buyer of Aucma’s 55% stake in the park is Qingdao Jingshan Light Machinery Investment Co., Ltd. Although Qingdao Jingshan Light Machinery has no direct relation to Aucma, the park itself is jointly held by both companies.

According to an asset valuation report published by Aucma in December last year, the two shareholders of Aucma Information Industrial Park Co., Ltd. are Aucma Shares (holding 55%) and Qingdao Jingshan Light Machinery (holding 45%).

Research shows that Aucma Information Industrial Park is a park called Smart Industry Park built in Laoshan District, Qingdao, jointly owned by the two companies.

In 2024, Aucma Information Industrial Park split into two companies: one is Aucma Information Industry Park Co., Ltd., and the other is Qingdao Aucma Smart Industry Co., Ltd.

These two companies hold different buildings within the park. The Information Industry Park owns parts of Buildings 6 and 7, while Qingdao Aucma Smart Industry owns parts of Buildings 1, 2, and 7.

Notably, both companies’ assets were appraised in the second half of last year. The assets held by the Smart Industry Park are planned to be acquired by Aucma, while the assets of the Information Industry Park are sold to partner Qingdao Jingshan Light Machinery.

This division clarifies asset ownership and at least helps the listed company shed the “burden” of losses on its books.

The valuation report shows that although the overall assets of the Information Industry Park still amount to 156 million yuan, from 2022 to 2025, its revenue and net profit have been declining. In 2022, revenue was nearly 192 million yuan with a profit of 43.18 million yuan, but by 2025, annual revenue drops to only 3.96 million yuan, with a net loss of 1.36 million yuan.

Selling part of the park’s equity helps the company cut losses and generate immediate cash flow, which is crucial for this veteran refrigeration equipment company facing tough times.

According to Aucma’s earnings warning, its losses in 2025 are expected to further increase, risking two consecutive years of losses.

Aucma attributes the losses to weak domestic demand for smart home appliances, diminishing government subsidies for old-for-new replacements, fluctuations in raw material prices, and fierce industry price competition.

In such circumstances, selling off loss-making assets for cash and income seems an inevitable choice.

Pinuo’s “Deep Cut” by Selling Factory

Similarly, Pinuo, a listed custom home furnishing company that changed ownership last year, is also using asset sales to “stop the bleeding.” Its exit appears more thorough, involving both equity and factory sales.

In early March, Pinuo officially sold a factory and industrial land in Tianjin, originally belonging to Pinuo Home Furnishings (Tianjin) Co., Ltd., for 95 million yuan to Tianjin Shenghai Technology Development Co., Ltd.

Research indicates that this Tianjin factory was a key production base for Pinuo. Construction of the first phase was completed and operational by 2015, and during its 2017 IPO, the Tianjin project was a key fundraising target. The plan was to complete the base by 2019 and fully ramp up production by 2020.

However, the plan did not proceed as fast as expected. By June 2019, the main factory buildings and warehouses were completed and operational, but some production lines had yet to be built. Facing market changes, Pinuo announced the halt of further construction in Tianjin, despite having invested 105 million yuan.

By late 2024, this heavily invested Tianjin base, originally meant to serve retail orders, faced reduced orders and high costs, leading to shutdown rumors. Orders were diverted to bases in Guangdong and Henan, with only about five years since initial construction.

The changes extended beyond production. At the end of 2025, Pinuo announced a change in control, bringing in Hangzhou Chuxin Micro Technology Partnership as a new major shareholder with an investment of 444 million yuan, along with a private placement of 395 million yuan. The new controlling person, Yin Jiayin, signaled a shift toward the semiconductor industry.

Although founder Ma Libin publicly stated he would not “walk away,” the sale of the factory indicates Pinuo is gradually distancing itself from its traditional home furnishing roots.

A more pragmatic view is that Pinuo still struggles with losses.

According to its 2025 earnings forecast, last year’s net loss attributable to the parent was between 35 and 45 million yuan, a significant reduction from previous years, but the company has yet to turn profitable due to factors like the real estate downturn.

The income from selling the Tianjin factory and land may help reverse the downward trend. Pinuo stated that the sale aims to “optimize resource allocation and activate existing assets.”

In recent years, the overall downturn in the real estate sector has impacted the home furnishing and especially the custom furniture markets, along with large appliance demand. Companies that failed to adapt in time have seen their performance suffer.

Assets purchased and built during the boom—land, factories—have become “lifelines,” providing some support during downturns.

However, liquidating assets and selling fixed assets is akin to “cutting off the source,” providing only short-term cash inflows. Long-term sustainability remains uncertain.

For listed home furnishing and appliance companies, discovering new consumer demands and finding suitable transformation paths are likely the only ways to fundamentally reverse their decline.