57k investors are stunned: the "Number One Stock in Home Retail" suffers a massive loss of 23.7 billion yuan!

Under the downward pressure on the real estate sector, the home furnishings industry is facing collective strain, and even Meikailong—the “first listed company in home furnishings retail”—has not been able to stand apart. In 2025, it posted a staggering loss of 23.7 billion yuan, leaving its 575,000 shareholders stunned.

A loss of 23.7B yuan in 2025

On March 30, Meikailong released its 2025 annual report. For 2025, it achieved revenue of 57.5k yuan, down 15.8% from 23.7B yuan in 2024; its attributable net profit recorded a massive loss of 6.58B yuan. This is not only the third consecutive year of loss, but the loss amount surged nearly sevenfold compared with 2024.

It is worth noting that in 2023, Red Star Macalline first recorded a loss, of 2.2 billion yuan. In 2024, it was also loss-making, but the loss was only about 3.0 billion yuan. The abrupt, three-digit plunge in 2025 is where “things went bad.”

Meikailong conducted a comprehensive revaluation of the fair value of its investment properties under accounting standards, resulting in an approximately 7.82B yuan fair value change loss recorded on the company’s books. This has also become the core reason for Meikailong’s sharp losses in 2025. Some analysts believe that after taking asset impairment provisions, the carrying amount of assets is more aligned with current market reality; the one-time recognition of actual impairment removes potential risks of continued depreciation of assets in the future.

Meikailong emphasized that this accounting adjustment does not involve any cash outflow, does not affect repayment capacity, and does not change the long-term utility value of the assets.

Meikailong’s massive loss also dragged down its “new owner,” Jiading Development Co., Ltd. (C&D Development Holdings Co., Ltd.), which entered in 2023. In 2025, it is expected to incur a loss of 10 billion yuan to 5.2 billion yuan, marking the first loss since the company’s listing in 1998.

Operating malls reduced by 42

In 2025, Meikailong’s self-operated and leased revenue was 23.44B yuan, down 8.9% year over year. The changes were mainly due to the sustained impact of the sluggish real estate sector and the continued downturn in demand in the home building materials industry. Revenue from entrusted operation and management was 4.88B yuan, down 18.4% year over year, mainly due to a reduction in the number of malls managed under entrustment. Revenue from construction and decoration services was 108 million yuan, down 67.5% year over year. Other revenue was 402 million yuan, down 40% year over year, mainly due to a decrease in the number of engineering projects and slower project progress leading to reduced settlement.

According to the announcement, as of December 31, 2025, Meikailong operated 74 self-operated malls with an average occupancy rate of 85.0%; it managed 218 entrusted malls with different depths of management, with an average occupancy rate of 82.9%; it operated 7 home furnishing malls through strategic cooperation. In addition, the company granted rights to 19 franchised home building materials projects through a franchising model, including 345 home building materials stores/industrial streets in total.

Compared with 2024, in 2025 the total number of malls of Red Star Macalline decreased by 42 year over year. Of these, self-operated malls decreased by 3, and entrusted management malls decreased by 39. The total operating area of malls nationwide decreased by nearly 2 million square meters, and the number of covered cities fell by 21.

In 2025, the overall gross margin was 64.3%, up 0.5 percentage points from 63.8% in 2024, mainly due to a year-over-year increase in gross margin for entrusted management malls.

During the reporting period, the net cash flow generated from operating activities was 816 million yuan, up 277.34% from 2024.

Alibaba-backed capital begins to withdraw

On March 24, Meikailong issued an announcement disclosing the results of the reduction plan by Hangzhou Haoyue Enterprise Management Co., Ltd., a shareholder holding more than 5%.

The announcement shows that before the reduction plan was implemented, Hangzhou Haoyue, together with Alibaba Holding and the New Retail Fund, were acting in concert, holding 349.7 million shares of the company in total, representing about 8.03% of the company’s total share capital. Hangzhou Haoyue originally planned to reduce its holdings by no more than 131 million shares, accounting for 3% of the total share capital.

From February 3, 2026 to March 6, 2026, Hangzhou Haoyue reduced 43.54 million shares of A shares of the company cumulatively through centralized bidding, representing about 1% of the company’s total share capital. The reduction amount was 113 million yuan. It is worth noting that the portion of the reduction through block trading in the original plan was not executed, and 87,094,729 shares remain to be reduced.

As of the date of the announcement, Hangzhou Haoyue held 192 million shares, representing 4.40% of the company’s total share capital. From December 2025 to February 2026, Alibaba Holding and the New Retail Fund had completed the reduction of all of their held H shares and no longer held any shares in the company.

In January 2018, Meikailong’s A-share total market value reached a peak of about 82.5 billion yuan. Currently, the total market value of its A shares is about 10.5 billion yuan, with a market value decline of 72 billion yuan.

( Meikailong’s A-share monthly K-line chart )

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