Red Star Macalline Executive President Zhu Jiagui recently gave an exclusive interview to National Business Daily, responding to questions about the company's business adjustments and restructuring. In the first half of 2026, Red Star Macalline expects net profit attributable to the parent company of 50 million to 75 million yuan, turning losses into profits. Zhu Jiagui said that overcapacity in the furniture mall industry is a fact, the original business model does not match today's market, and the company is compressing the operating area for home furnishing and building materials from 100 percent to 60 percent, adjusting the appliance area to 15 percent, the design center area to 15 percent, and leaving 10 percent for automotive and commercial content innovation. He proposed that terminal shopping malls should shift from the past landlord model to becoming commercial content operators and ecosystem service providers, and plans to expand the operating area of new retail furniture stores to over 300,000 square meters by the end of 2026, with 20 benchmark stores in place. Zhu Jiagui believes that China still has an appliance market worth 800 billion yuan and a home furnishing and building materials stock market of 3 trillion to 4 trillion yuan. The industry needs three to five years to complete adjustments and reduce its dependence on real estate.
Red Star Macalline Group Corp Ltd Class ACompany expects net profit turnaround in H1 2026, indicating improved financial performance.
