OPPEIN(SH:603833) Sou Hu Cai Jing·2026-01-07 03:38Core Viewpoint - The company is facing significant changes in the market environment, leading to a reassessment of the "Oupai Home Smart Manufacturing (Wuhan) Project" due to lower-than-expected demand and increased operational pressures in the custom home furnishing industry [3][5]. Group 1: Market Environment and Challenges - Since 2015, the custom home furnishing industry has experienced rapid growth, with a compound annual growth rate (CAGR) of 24.06% from 2015 to 2021, resulting in high capacity utilization and significant production pressure across manufacturing bases [3]. - The company initiated the smart manufacturing project in response to market demand and strategic goals; however, macroeconomic changes and industry cycles have led to weakened demand, structural supply changes, and intensified competition, creating operational challenges [3][5]. - Despite implementing various reforms since 2025, the company's profitability remains under pressure, and continuing with the Wuhan project could negatively impact overall capacity utilization and resource allocation [3][5]. Group 2: Capacity and Production Efficiency - The company has successfully integrated automation, intelligence, and digital technologies into its manufacturing processes, enhancing production efficiency and product reliability across its main production bases [4]. - The smart manufacturing project in Wuhan is progressing, with production lines already operational, and the overall capacity layout is currently sufficient to meet business development needs while allowing for moderate order growth [4]. - To optimize the use of project facilities, the company has decided to temporarily lease out up to 26,000 square meters of idle space for a period not exceeding 12 months, approved by the fourth extraordinary shareholders' meeting in 2025 [4]. Group 3: Future Investment Plans - The company plans to redirect remaining funds from the smart manufacturing project towards three new initiatives: the Digital Empowerment Upgrade Project (1.21 billion), the Delivery Automation Upgrade Project (1.11 billion), and the New Media Operations and Brand Enhancement Project (0.89 billion) [6]. - The total investment for these new projects amounts to approximately 3.69 billion, with the majority funded through raised capital [6].