By YIN Jingfei
Despite government-backed capital, furniture retailer Red Star Macalline may be ready to report an astounding loss of 600 million yuan (US$82 million) in Q3. In the first half of this year, the company managed a net income of 150 million yuan.
This means that the net loss between July and September amounted to at least 750 million yuan.
Red Star’s predicament reflects that of the entire industry. Other major players also experienced significant losses in 2022 and 2023.
Red Star is selling stock in subsidiaries to consolidate its resources in the core business. Additionally, it has ventured into markets such as catering, EVs and office furniture and joined a cross-border e-commerce platform: GigaCloud Technology, a B2B marketplace specializing in large items.
Red Star Macalline stock closed at 4.24 yuan per share on October 20, nearly 80 percent lower than its peak.
