Lin Ruhai has taken over for more than two years, and Royal Home Furniture is expected to lose over 580 million yuan.

Leju Finance Li Lan On March 23, Royal Furniture (01198.HK) announced that it expects a loss of between 580 million to 730 million yuan for the fiscal year 2025, while the loss for the year ending December 31, 2024, is estimated to be approximately 348 million yuan.

The announcement pointed out that this loss is primarily influenced by six major factors: impacted by the macroeconomic environment and the overall weakening of market demand, the operating profit of furniture products has declined; due to the transmission of cyclical adjustments in the real estate industry, the gross profit from home decoration business has decreased significantly;

The general provisions for trade receivables, other receivables, and inventory have increased; there has been a revaluation loss on investment properties; the losses from joint ventures have increased; and financing costs have risen.

It is reported that in early December 2023, Lin Ruhai succeeded Yang Jun as the chairman, executive director, and CEO of Royal Furniture.

Lin Ruhai was born in 1982 and graduated from Zhejiang Normal University. He has over ten years of experience in corporate management and equity investment. From 2016 to 2018, he served as the deputy general manager of the financial department at Guangzhou High-tech Zone Investment Group Co., Ltd. and the general manager of Guangzhou Guoju Venture Capital Co., Ltd.

In 2023, Royal Furniture’s revenue was approximately 828 million yuan, a year-on-year decrease of 43.3%. Royal Furniture stated in its annual report that the decrease in revenue was due to the group’s termination of commodity trading business during the year. The loss for the fiscal year 2023 was approximately 386 million yuan, compared to a profit of 10.6 million yuan in 2022, representing a decrease of 3727.5%.

For the entire year of 2024, the group achieved an operating revenue of 526 million yuan, a decrease of 36.5% compared to the previous year. The loss attributable to equity holders of the company was approximately 334 million yuan.