Suofeiya Home Collection Co Ltd

Suofeiya released its 2026 interim report on August 26, showing declines in both revenue and profit for the reporting period, but operating cash flow turned from negative to positive. Data shows the company achieved operating revenue of 3.377 billion yuan, down 25.80% year-on-year; net profit attributable to the parent was 62 million yuan, down 80.61% year-on-year; and non-GAAP net profit was 122 million yuan, down 71.51% year-on-year. Net cash flow from operating activities was 49 million yuan, a significant improvement from negative 105 million yuan in the same period last year. The decline in performance was mainly affected by shrinking demand for new home renovation in the domestic market, while the company also incurred large losses from changes in the fair value of financial assets such as its holdings in Guolian Minsheng shares. The company is advancing a strategic transformation toward whole-home customization, expanding supporting categories such as cabinets, doors and windows, and deepening cooperation in the integrated renovation channel to tap opportunities in the existing-home market.

Sofia released its 2026 interim report, with total operating revenue of 3.377 billion yuan, down 25.80% year-on-year, and net profit attributable to the parent of 61.9174 million yuan, down 80.61% year-on-year. Net cash inflow from operating activities was 49.2747 million yuan, the asset-liability ratio was 43.25%, gross margin was 31.86%, ROE was 0.93%, and diluted earnings per share was 0.06 yuan. The company had 41,500 shareholders, and the top ten shareholders held 53.13% of total share capital.

Sofya disclosed its half-year report on the evening of August 26, showing first-half net profit slumped more than 80% and gross margin for its core products came under pressure. In the first half of 2026, the company posted revenue of 3.377 billion yuan, down 25.80% year on year. Net profit attributable to shareholders of the listed company was 61.9174 million yuan, down 80.61% year on year. Net profit after deducting non-recurring items was 122 million yuan, down 71.51% year on year. The main reason for the revenue decline was a drop in orders during the period. Revenue from wardrobes and related products fell 26.57% year on year, cabinets and related accessories fell 30.38%, wooden doors fell 22.21%, and other main businesses fell 5.62%. Only export business grew 108.11% year on year. Gross margin for the core wardrobe and related products business slipped 3.20 percentage points. The company said China's custom home furnishing industry is in a phase of deep adjustment. The overall market has moved past the high-speed expansion cycle driven by new property development, and is now facing overlapping pressures from stock-based competition, homogeneous low-price rivalry, and fragmented channel traffic, with small and medium capacity and weaker brands continuing to be cleared out. In the secondary market, the company's share price has trended lower this year. Its latest closing price on August 26 was 8.25 yuan per share, a decline of more than 35% for the year.

Sofia disclosed an earnings forecast, estimating first-half 2026 net profit attributable to the parent at 47.907 million yuan to 70.2636 million yuan, a year-on-year decline of 78% to 85%. Deducted non-recurring net profit is estimated at 98.5622 million yuan to 146 million yuan, down 66% to 77% year-on-year. Basic earnings per share are estimated at 0.05 yuan to 0.07 yuan. The company said the decline in performance was mainly affected by slowing macroeconomic growth, a downturn in the real estate cycle, and insufficient consumer confidence. Competition in the custom furniture industry intensified, fixed costs could not be fully absorbed, and the period expense ratio rose passively. At the same time, adjustments to end-product selling prices led to a year-on-year decline in gross margin. In addition, the impact of non-recurring gains and losses on net profit is estimated at negative 52 million yuan to negative 74 million yuan, mainly due to changes in the fair value of Guolian Securities shares held by wholly-owned subsidiary Guangzhou Sofia Investment Co., Ltd.