Oppein Home Group Inc

Oppein Home Chairman and President Yao Liangsong admitted in two investor exchanges within half a month that the company misjudged the market at the start of the year, and that the company is in its most severe deep adjustment period in more than 30 years since its founding. In the first half, Oppein Home achieved operating revenue of 5.95 billion yuan, down 27.79% year on year, and net profit attributable to the parent of 442 million yuan, down 56.62% year on year. Net cash flow from operating activities fell from 1.667 billion yuan in the same period last year to 92 million yuan, a drop of 94.45%. Wardrobes and supporting furniture products, which contribute nearly half of revenue as the core business, posted first-half operating revenue of 2.776 billion yuan, down 34.51% year on year, a larger decline than the company's overall revenue decline. As of the end of June, the total number of stores was 6,903, a net decrease of 442 from the end of 2025. Yao Liangsong admitted that reforms in the main business fell short of expectations and did not give a clear timetable for when profit would stop falling and stabilise, while finance chief Zhao Lili said there is a possibility that full-year results will decline year on year.

Oppein Home Group announced on August 29 that revenue for the first half of 2026 was 5.95 billion yuan, down 27.79% year on year, with net profit attributable to the parent company of 442 million yuan, down 56.62%, and basic earnings per share of 0.73 yuan. The company has now posted two consecutive years of declining revenue and profit, with this year's profit decline roughly double the revenue decline, mainly due to the property market adjustment and weaker-than-expected consumption recovery. Financial expenses surged 116.60% year on year because of exchange losses, net margin fell from 12.39% to 7.49%, and net operating cash flow plunged 94.45% year on year to 92.4974 million yuan, mainly because of the high base from last year's trade-in national subsidies. The company has designated 2026 as the first year of its AI strategy. Its self-developed Smart Home Cloud platform now covers nearly 7,000 stores, and AI-assisted design usage has exceeded one million times, but the contraction in traditional business has completely offset the efficiency gains from AI.

Oppein Home Group disclosed a performance forecast, estimating that net profit attributable to the parent for the first half of 2026 will be between 407 million yuan and 509 million yuan, a year-on-year decline of 50% to 60%. Deducted non-recurring net profit is expected to be between 330 million yuan and 424 million yuan, a year-on-year drop of 55% to 65%. The company stated that the decline in performance is mainly due to the deep adjustment of the real estate industry, sluggish recovery in end-user home furnishing consumption, a significant drop in customer traffic, intense industry competition, and the high base formed by the concentrated release of home decoration demand from the trade-in policy in the same period last year, which continued to put pressure on second-quarter operating revenue. Although the company is actively promoting businesses such as whole-home decoration, partial renovations, and community stores, it still takes time for the relevant operating strategies to take effect from adjustment, and their contribution to revenue in this period is limited. In addition, the decline in main business revenue makes it difficult to dilute fixed costs, which, combined with regular operating expenses, dragged down overall net profit.

An Opple Home dealer in Liaocheng, Shandong province has gone missing, involving renovation payments of about 2 million yuan from over 40 homeowners. Consumers reported that after signing whole-house customisation contracts and making payments with dealer Cai Guangwen at two Opple stores in Liaocheng’s Red Star Macalline and Shunyi Home, the stores were transferred or closed before construction was completed, and the dealer could not be reached. Opple Home responded that the dealer is an independent legal entity, and the company has set up a special team to urge contract fulfilment, while advising consumers to file complaints with market regulators or seek legal remedies. Similar incidents of Opple Home dealers absconding have previously been reported in Baotou, Chongqing and other locations. Lawyers point out that if the brand owner fails to exercise due supervisory obligations, it may bear supplementary compensation liability. Opple Home’s performance has been declining in recent years, with 2025 revenue down 8.94 percent year on year and net profit attributable to the parent company down 23.18 percent. The dealer channel contributes nearly 80 percent of its main business revenue.

Oppein Home Group recently sparked heated discussion with an internal letter titled 'Without value release, there should be no position'. The letter stated that the group has launched a systematic strategy to cope with extreme conditions, including streamlining structures, optimising personnel, and cutting costs, likening it to 'painfully asking some to leave the ship'. The company's securities department told media that the letter was an internal risk warning and there is no unified large-scale layoff plan. However, financial reports show that the total number of employees fell from 24,044 at the end of 2023 to 17,880 at the end of 2025, a reduction of 6,164 in two years. On the performance front, revenue and net profit attributable to the parent company declined year-on-year for two consecutive years in 2024 and 2025. In the first quarter of 2026, revenue fell 23.03% year-on-year to 2.653 billion yuan, net profit attributable to the parent fell 49.73% to 155 million yuan, and net cash flow from operating activities plummeted 147.12% to negative 364 million yuan. The share price has fallen nearly 80% from its 2021 peak, closing at 32.58 yuan on July 8, with a total market capitalisation of 19.85 billion yuan and a year-to-date decline of 34.35%.