Core Viewpoint - The article discusses the recent turmoil within the home furnishing retail sector in China, particularly focusing on the challenges faced by Fusenmei, a leading home furnishing market player, due to the detention of its executives and declining financial performance [3][4][18]. Group 1: Executive Detention Crisis - Three major home furnishing companies in China have seen their chairpersons detained this year, including Fusenmei's chairman Liu Bing, who was detained on July 24 [3][16]. - Following Liu Bing's detention, Fusenmei's company secretary Zhang Fengshu was also placed under investigation and detained, raising uncertainties about the company's future [17][18]. - The company has stated that it has made arrangements to ensure normal operations during this period, but the situation has led to concerns about internal governance [17][19]. Group 2: Financial Performance and Challenges - Fusenmei has shown a significant reliance on the Chengdu market, with 97.76% of its revenue coming from this region in 2024, which poses risks during market downturns [7][21]. - The company's financial performance has been declining, with a reported revenue of 1.43 billion yuan in 2024, down 6.18% year-on-year, and a net profit of 690 million yuan, down 14.39% [9][24]. - In the first three quarters of 2025, Fusenmei's revenue further declined by 14.35% to 924 million yuan, with a net profit decrease of 12.6% to 477 million yuan [9][24]. Group 3: Industry-Wide Challenges - The home furnishing retail sector is undergoing structural adjustments, with many companies facing similar challenges, including declining demand due to a downturn in the real estate market and changing consumer preferences [10][27]. - Major competitors like Red Star Macalline and Juran Zhijia are also experiencing significant losses, indicating a broader industry crisis [11][26]. - The industry is transitioning from a growth phase to a competitive phase, with many companies struggling with reduced orders and rising costs [27][28]. Group 4: Transformation Efforts - Fusenmei is attempting to shift from a traditional rental model to a service-oriented approach, aiming to create a "home consumption ecosystem" [28]. - However, the success of this transformation is uncertain, and the company's high dividend payouts, which exceeded its net profit in 2024, raise concerns about its financial sustainability during this critical transition period [9][28].