Meike Home (600337.SH): Tianjin subsidiary stops work and production

Zhitong Finance App News, Meike Home (600337.SH) issued an announcement. Recently, the company was concerned about reports on the market about the company's wholly-owned subsidiary Meike International Furniture (Tianjin) Manufacturing Co., Ltd. (“Tianjin Meike”) and Meike International Furniture Processing (Tianjin) Co., Ltd. (referred to as “Tianjin Processing”) stopping work and production. The relevant information is now reported as follows:

Tianjin Meike and Tianjin Processing were originally export factories. Affected by the international trade environment, the company's original export business was carried out by the company's Vietnam factory. Tianjin Meike and Tianjin Processing gradually became suppliers mainly serving the company's internal customers (i.e. directly managed stores and wholly-owned subsidiaries responsible for franchise business), and their operating income and related profits were offset in the company's consolidated accounting statements.

In recent years, due to a combination of internal and external factors, the company's operations have experienced large losses. The average utilization rate of processing capacity in Tianjin Meike and Tianjin is less than 20%. In order to optimize idle production capacity, reduce losses, and accelerate strategic transformation, after careful research, the company decided to stop work and production of Tianjin Meike and Tianjin Processing from January 1, 2026, and issued a “Notice Concerning the Company's Shutdown of Work and Production”. After the shutdown of work and production, the company has arranged for special personnel to actively negotiate with employees, which will fully protect the legitimate rights and interests of employees. At the same time, the company is actively doing a good job in asset evaluation and other work of Tianjin Meike and Tianjin Processing, laying the foundation for subsequent investigation of the feasibility of their debt restructuring and other related matters.