Home Furnishing Listed Companies Are Trying to Turn Around with AI and Semiconductors
Chinese home furnishing listed companies are increasingly turning to AI and semiconductor cross-border ventures to revive their fortunes amid declining core businesses.
A prominent example is PVC flooring giant **Elegant Home Furnishing**, whose stock price skyrocketed with 10 consecutive trading limits after announcing a plan to acquire a majority stake in **Ou Kang Nuo**, a semiconductor storage testing equipment and services company. Despite Elegant Home's own financial struggles—including recent losses and tight cash flow—the acquisition, funded through asset sales and loans, has dramatically boosted its market value. The deal involves a cross-shareholding structure with Ou Kang Nuo's controlling shareholder.
This trend is widespread. Over the past year, numerous home furnishing firms with stagnant main operations have seen their stock prices surge after announcing moves into hot sectors like AI, semiconductors, or computing power.
Key cases include:
* **Markor Home Furnishings** ("high-end home furnishing first share"), after years of heavy losses, acquired an AI server high-speed copper cable company and later introduced AI computing power investors.
* **Zhenai Meijia** ("blanket king") became the first A-listed manufacturer controlled by an AI large model company following a takeover.
* **Fasilon** (integrated ceiling) saw its stock soar after establishing an AI subsidiary.
* **Jinlong Decoration** experienced multiple trading limits after being linked to "commercial aerospace" and "AI computing," despite clarifying these segments contribute less than 1% of its business.
Statistics show over 20 A-share companies announced semiconductor crossovers in 2025, with home furnishing and building materials firms being the most active. This shift is largely driven by pressures from the real estate downturn, shrinking overseas demand, and trade tariffs, pushing companies to seek growth through trendy concepts rather than core business improvement.
However, the article warns that such speculative frenzies often end when the hype fades, leaving stock prices to eventually reflect the companies' weak fundamentals, as seen in Jinlong Decoration's subsequent sharp price correction. The repeated attempts to "ride the trend" highlight a desperate struggle for survival in a challenging traditional industry.
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