Many listed home furnishing companies have started to dispose of their old assets.

Some are selling their old headquarters and office buildings, while others are pledging core commercial properties to banks for cash. The recent moves of three listed pan-home furnishing companies appear to be "asset disposal" and "bank credit granting" on the surface, but they point to the same thing behind the scenes:

Against the backdrop of the post-real estate cycle and weak demand, manufacturing enterprises are converting land, factory buildings and properties that have been settled for many years back into cash flow. In this issue, New Home Furnishing Paradigm focuses on three samples, namely Foshan Lighting, Conch New Materials, and Jiangshan Oupai, to see how they solve the "new capital problem" with "old assets".

Foshan Lighting: Sell the Old Headquarters! Expected Revenue of 550 Million Yuan

On October 7, Foshan Lighting issued an announcement on the progress of asset disposal — the company has officially handed over the central plot of Fenjiang North Road to the Land Reserve Center of Chancheng District, Foshan City. The Chancheng Branch has publicly listed and transferred the plot at the Chancheng Branch of Foshan Public Resources Trading Center on September 30.

This plot covers an area of 76,300 square meters with an assessed value of 1.237 billion yuan, starting at a floor price of 6,700 yuan per square meter. If the entire plot is transferred at this price, Foshan Lighting expects to receive a bookkeeping land reserve compensation income of about 550 million yuan, with a net profit of about 340 million yuan after deducting relevant costs, expenses and taxes.

What does 340 million yuan mean? The attributable net profit of Foshan Lighting for the whole year of 2025 is only 215 million yuan. A single plot of land is worth the money earned in a whole year, and there is still a large surplus.

No. 64 Fenjiang North Road is the old headquarters where Foshan Lighting has taken root for decades. The production workshop of the company's Chancheng headquarters has long been relocated to the Gaoming Industrial Base, and the headquarters and R&D center have also moved to the Foshan Lighting Building on Zhihui Road, Chancheng District. The old factory area was then left idle and included in the "Three Olds" renovation plan of Chancheng District.

The entire Fenjiang North Road plot covers about 276 mu, divided into three units: South District, Central District and North District. Among them, the Central District and South District are planned as second-class residential land with compatible commercial and business functions, and the upper limit of floor area ratio is 3.2; the North District is planned as land for commercial, business, entertainment and fitness purposes. In other words, this old industrial land located in the core area of northern Chancheng is being transformed into a new residential and commercial district.

The Central District is not the first plot of land Foshan Lighting has sold.

In November 2024, the South District plot of Fenjiang North Road was transferred first, covering an area of about 71 mu. It was won by Shenzhen Zhonghai Investment Co., Ltd. and China State Construction International Investment Group Co., Ltd. for 927 million yuan, equivalent to a floor price of about 7,100 yuan per square meter. Foshan Lighting thus received a bookkeeping land reserve compensation income of about 394 million yuan, with a net profit of about 306 million yuan.

At that time, some media did the math: the net profit of 306 million yuan was higher than the net profit of Foshan Lighting in any year of 2021 (net profit of 300 million yuan), 2022 (net profit of 230 million yuan) and 2023 (net profit of 290 million yuan). "Working hard for a year is not as good as selling a plot of land" — this sentence is particularly piercing when applied to Foshan Lighting.

Conch New Materials: Sell the Office Building! Minimum 41 Million Yuan

On October 9, Conch New Materials issued an announcement, proposing to publicly list and sell assets such as land, houses and structures located at the intersection of Pujiang Road and Gangwan Road in Wuhu Economic and Technological Development Zone, Anhui Province. The listing base price is 41 million yuan (including value-added tax), and the final transaction price will be determined according to the result of public listing bidding. This matter has been reviewed and approved by the company's board of directors on October 8, and does not need to be submitted to the shareholders' meeting for approval.

The assets to be sold this time are currently for the company's own use, including the comprehensive office building, canteen, boiler room and related supporting facilities. The registered land area is 9,250.05 square meters, and the total building area of the houses is 6,767.98 square meters. Among them, the property right certificate has been processed for the comprehensive office building, but not for the canteen and boiler room.

Taking July 31, 2026 as the evaluation base date, the book net value of the underlying assets is 7.4608 million yuan, and the assessed value is 26.0728 million yuan. The company stated that the listing base price is determined on the basis of reference to the assessed value, comprehensively considering factors such as the future commercial value of the real estate, the appreciation space of building renovation and location advantages.

According to the announcement, this sale is mainly to revitalize existing assets, reduce management costs and improve asset utilization efficiency, and the proceeds will be used to supplement working capital. If the transaction is completed, the company's office address will be changed.

At present, the transferee, final transaction price and completion time have not been determined, and the company has not signed a transaction agreement. This transaction does not constitute a major asset restructuring, and the impact on the company's financial status and operating results cannot be accurately calculated for the time being.

Jiangshan Oupai: Pledge Real Estate! Apply for 200 Million Yuan Credit

On September 30, Jiangshan Oupai (SH603208) announced that the company mortgaged two properties (total 2337.64 square meters) in Hangzhou MixC to the Quzhou Branch of Bank of Ningbo to apply for a comprehensive credit line of 200 million yuan. At present, the total mortgaged assets have exceeded 30% of the audited total assets in 2025.

This seemingly conventional bank credit granting move, when placed in the current coordinates of the home furnishing industry, has several points worthy of scrutiny.

The most intuitive change is that the choice of corporate mortgaged assets has changed. This time, the mortgaged assets are the MixC commercial properties located in the core area of Hangzhou, not productive assets such as factory buildings and equipment. The commercial properties have relatively stable valuation and strong realizability, and are the collateral that banks recognize more. Under the pressure of the whole industry, enterprises are willing to use core assets as collateral to obtain loans, or it shows that their attention to liquidity and capital cost has exceeded the obsession with asset precipitation. But it can also be seen that banks are still relatively cautious in risk pricing for the home furnishing manufacturing industry, and are more willing to adopt the method of "asset anchoring".

Secondly, the proportion of total mortgaged assets exceeding 30% is worthy of attention, which means that the financing space of Jiangshan Oupai is being bound by the existing assets. The wooden door industry is closely related to the post-real estate cycle, and the extension of the payment collection cycle in the engineering channel has become a common problem in the whole industry. The essence of exchanging assets for liquidity is to exchange space for time, but the actual effect depends on whether the speed of credit withdrawal, capital cost and order payment collection can be improved.

This article is from the WeChat official account "New Home Furnishing Paradigm", author: Bai Wei, published with authorization from 36Kr.