Xilinmen Furniture Co Ltd

ST Xilinmen released its 2026 interim report. Total operating revenue was 3.812 billion yuan, down 5.18 percent year on year. Net profit attributable to the parent company was a loss of 36.2 million yuan, a decrease of 303 million yuan from the same period last year, down 113.58 percent year on year, swinging from profit to loss. Net cash flow from operating activities was negative 88.6 million yuan, a decrease of 48.98 million yuan year on year. The company's asset-liability ratio was 57.52 percent, gross margin was 30.26 percent, return on equity was negative 1.03 percent, and diluted earnings per share was negative 0.10 yuan.

Xilinmen Health Sleep Technology disclosed its half-year report on the evening of August 25, with results turning to a year-on-year loss. In the first half of this year, the company achieved operating revenue of 3.812 billion yuan, down 5.18 percent year on year. Net profit attributable to the parent company was a loss of 36.1977 million yuan, swinging from profit to loss year on year and down 113.58 percent. Net profit attributable to the parent company after deducting non-recurring items was a loss of 39.5666 million yuan, swinging from profit to loss year on year and down 115.24 percent. The company said that due to the continued adjustment of the real estate market, overall industry operations are under pressure. In the first half of 2026, national housing completions reached 172.21 million square meters, down 23.7 percent year on year, of which residential completions were 121.48 million square meters, down 25.3 percent year on year. The decline in new home deliveries directly led to weaker traditional home furnishing demand. According to data from the National Bureau of Statistics, from January to June 2026, retail sales of furniture goods by enterprises above designated size nationwide totaled 87 billion yuan, down 3.7 percent year on year. Furniture manufacturing enterprises above designated size achieved operating revenue of 257.61 billion yuan, down 8.6 percent year on year, while total profit was only 4.57 billion yuan, down sharply by 52.7 percent year on year. The company also flagged major risks. Because Pan-China Certified Public Accountants issued an adverse opinion on the company's 2025 internal control audit report, and the balance of non-operating funds occupied by the controlling shareholder and its related parties reached more than 5 percent of the absolute value of the latest audited net assets, and the balance of external guarantees provided by the company in violation of prescribed decision-making procedures reached more than 5 percent of the absolute value of the latest audited net assets, and the controlling shareholder and its related parties were unable to complete repayment or rectification within one month, the company's shares have been subject to other risk warnings since April 28, 2026. As of the end of the reporting period, the balance of non-operating funds occupied by the controlling shareholder and its related parties was 493 million yuan, accounting for 13.84 percent of the latest audited net assets. Through factoring business, certificate of deposit pledges, and issuing guarantee letters to creditors related to the controlling shareholder without compliance review and information disclosure procedures, the balance of irregular guarantees reached 459 million yuan, accounting for 12.90 percent of the latest audited net assets.

The China Securities Regulatory Commission recently released its accounting supervision report on annual financial reports of listed companies for 2025. It shows that 214 listed companies that disclosed annual reports on time received non-standard audit opinions, including 87 with qualified opinions and 18 with disclaimers of opinion. According to Wind data, as of August 19, more than 160 A-share listed companies had been placed under ST or asterisk ST risk warnings this year, with over 140 added since the second quarter. They include former semiconductor leader with a market value of 100 billion yuan, now known as ST Wingtech, and the veteran ChiNext company ST Huayi. The triggers were mainly financial underperformance or loss of financial credibility. For example, ST Zhongshe was flagged because total profit, net profit, and net profit excluding non-recurring items were all negative, while revenue excluding non-recurring items failed to reach the 300 million yuan threshold. ST Weiling simultaneously triggered negative net assets at period end and a disclaimer of opinion on internal control auditing. Dozens of companies such as ST Jiaoang, ST Rebecca, and ST Guangtang were placed under risk warnings for financial fraud or distorted financial data. Regulatory compliance risks were also prominent. ST Xilinmen was flagged because the controlling shareholder's non-operating fund occupation and outstanding irregular guarantees each exceeded 5 percent of net assets, and internal control received an adverse opinion. ST Jinhongshun received an additional risk warning due to an adverse internal control opinion and non-operating fund occupation of 107 million yuan by actual controller Liu Xu. Regulators are accelerating the establishment of a normalized delisting framework. In April 2026, the Shanghai, Shenzhen, and Beijing stock exchanges revised trading rules, adjusting the daily price limit for risk-warning stocks on the Shanghai and Shenzhen main boards from 5 percent to 10 percent, effective July 6. The four major mandatory delisting standards covering financial, trading, regulatory compliance, and major illegal conduct categories have been comprehensively upgraded.

ST Xilinmen disclosed its earnings forecast, expecting a net loss attributable to the parent company of 31 million to 40 million yuan in the first half of 2026, compared with a profit of 266 million yuan in the same period last year. The company also expects to achieve operating revenue of 3.8 billion yuan in the same period, a year-on-year decline of 5.48%, with a non-recurring net loss of 38 million to 47 million yuan, compared with a profit of 260 million yuan in the same period last year. The change in performance is mainly due to the decline in revenue from high-margin domestic offline businesses caused by industry conditions and intensified competition, leading to a phased decline in overall gross margin. At the same time, the company proactively increased marketing investment in new retail channels and incurred approximately 49 million yuan in exchange losses.

ST Xilinmen announced that 84.7997 million shares held by controlling shareholder Zhejiang Huayi Intelligent Manufacturing Co., Ltd. and 8.1070 million shares held by actual controller Chen Ayu were both subject to rotation freeze by the Yuecheng District People's Court of Shaoxing City on July 9, 2026, accounting for 23.03% and 2.20% of the company's total share capital respectively. The amount of claims involved in this rotation freeze is 133 million yuan. As of the disclosure date of the announcement, the cumulative frozen and rotation-frozen shares of the controlling shareholder and its concert parties total 133.9102 million shares, representing 100% of their total shareholdings and 36.36% of the company's total share capital.