Another home furnishing listed company's stock price has skyrocketed due to a cross-border venture into semiconductors.
On August 6, PVC flooring giant Elysium Home Furnishings resumed trading with another daily limit-up, marking its 10th consecutive daily limit-up. Wind data shows that from July 21 to August 6, the company's stock price has surged by 159.31% cumulatively.
This struggling flooring company achieved a turnaround solely through a cross-border capital operation.
On the evening of July 20, Elysium Home Furnishings announced that it had signed an "Equity Acquisition Intent Agreement" with shareholders Zhao Ming, Tong Shujuan, Anhui Mingde Zhonghe, and Anhui Zhonghe of OCONOR, intending to acquire no less than 77.08% of OCONOR's equity with cash and make it a controlling subsidiary.
OCONOR is mainly engaged in storage testing equipment and related testing services. Its product series include GA300, SW400, MS200, and ES100, covering test scenarios such as SSD modules, DDR modules, storage chips, and embedded memory. It boasts a complete solution centered on system-level testing (SLT) while also providing professional testing services.
OCONOR Financial Data | Screenshot from the Announcement
This acquisition involves many clever transaction details: Elysium Home Furnishings acquires OCONOR, while OCONOR's actual controller Zhao Ming simultaneously acquires 20% of Elysium Home Furnishings' shares. You buy me, I buy you, a two-way binding. Additionally, OCONOR has made a performance commitment: cumulative non-GAAP net profit over four years shall be no less than 230 million yuan.
The key question is: where does Elysium Home Furnishings' acquisition funding come from?
The announcement shows that the acquisition funds will come from the company's own funds and self-raised funds through methods such as disposing of idle assets (valued at approximately 200 million to 300 million yuan), bank loans, and loans from major shareholders.
Currently, Elysium Home Furnishings does not have much cash on its books.
According to its Q1 2026 report, Elysium Home Furnishings had only 259 million yuan in cash and cash equivalents on its books, while short-term interest-bearing debt reached 277 million yuan. The acquisition requires 500 million yuan.
The reason for the limited cash on hand is that Elysium Home Furnishings' "flooring business" has long been in the red.
In 2025, the company's revenue and net profit attributable to shareholders both declined, with net profit attributable to shareholders plummeting 87.6% year-on-year to 17.17 million yuan. Entering 2026, losses continued to widen, with a loss of 14.82 million yuan in Q1 and a projected loss for the first half of the year increasing to 34.5 million to 40.5 million yuan.
Image Source: Elysium Home Furnishings Announcement
However, Elysium Home Furnishings did not persist in returning to its core business. Instead, it set its sights on cross-border mergers and acquisitions, which have yielded positive effects so far—its stock price has soared, with nine consecutive daily limit-ups, and its market capitalization skyrocketed from 2.3 billion to 5.46 billion yuan. As of the close on August 6, its total market capitalization had increased to 6 billion yuan.
Elysium Home Furnishings is not an isolated case.
Over the past year or more, home furnishing listed companies have collectively staged a drama of "cross-border survival." The script is almost identical: sluggish growth in the core business leads to targeting AI, semiconductor, or computing power concepts. Once announced, stock prices soar.
Once the "first stock in high-end home furnishings," Markor Home Furnishings, accumulated losses exceeding 3.7 billion yuan over four years. At the end of 2025, the company announced the acquisition of 100% equity in AI server high-speed copper cable company Wandetai Optoelectronics. After resuming trading, its stock price surged continuously. Subsequently, it also introduced AI computing power industry investors to participate in its restructuring.
The Yiwu "Blanket King," Zhenai Meijia, saw AI unicorn Tanji Technology acquire 44.99% of its shares through "agreement transfer + tender offer" for approximately 1.8 billion yuan in Q4 2025, making it the first A-share manufacturing company controlled by an AI large model company. Its stock price immediately hit consecutive daily limit-ups.
Integrated ceiling giant Fasilon announced in September 2025 that it would invest 250 million yuan to establish an AI subsidiary, leading to eight consecutive daily gains and a rise of over 380% within a year. The company, with only 900 million yuan in assets, supported a market capitalization of nearly 9 billion yuan.
Home decoration leader Gold Mantis, after associating itself with "commercial aerospace" and "AI computing power," secured 11 daily limit-ups in 15 trading days, with a cumulative increase of 136.8%. However, the company clarified that the related business accounts for less than 1% of its total.
Preliminary statistics show that in 2025, over 20 A-share listed companies announced cross-border ventures into the semiconductor sector, with home furnishing and building materials companies accounting for the highest proportion. The downturn in the real estate industry, stagnation in core business growth, and continuous profit shrinkage have forced these companies to flock to popular sectors, attempting to turn around with trending concepts.
The ultimate outcome of countless cross-border speculation cases is consistent: the concept fades, the bubble bursts, and the stock price returns to fundamentals. For example, Gold Mantis' stock price quickly retreated after market sentiment cooled. As of the close on August 6, its stock price had been halved from its peak.
This is also the case with Elysium Home Furnishings this time. A letter of intent for acquisition that has not yet led to a formal agreement; the company has repeatedly issued announcements warning that "the formal agreement has not been signed and there is uncertainty." How can fundamentals showing a half-year loss exceeding 40 million yuan support a market capitalization of 6 billion yuan?
Home furnishing companies continue to cross borders and ride hype waves, more out of helpless survival tactics amid slowing core business.
The downturn in real estate, shrinking overseas demand, and tariff impacts have continuously lowered the ceiling for traditional home furnishing manufacturing. Rather than competing fiercely in a red ocean, it seems better to embrace a cutting-edge concept, let the stock price rise, and allow major shareholders to find more possibilities within it.
However, after the狂欢狂欢 (carnival), someone always has to be left behind.
Note: Article materials sourced from official reports and public information; views are for reference only. | Some images sourced from the internet; please inform for deletion if there is any infringement.
This article is from the WeChat public account "Yuan Mei Hui," author: Xie Chunsheng
