Core Viewpoint - The recent passing of Wang Linpeng, the actual controller and CEO of Juran Zhijia, has raised significant concerns in the home furnishing industry, particularly given the company's struggles in recent years due to economic fluctuations and the real estate market downturn [1][2]. Company Overview - Juran Zhijia is a major player in China's home furnishing retail sector, operating 407 stores across 30 provinces and regions, including 83 direct-operated and 324 franchised stores as of the end of last year [2]. - The company was founded in 1999 and has grown significantly under Wang Linpeng's leadership, achieving a market capitalization exceeding 700 billion yuan at its peak [2][5]. - Wang Linpeng was the largest shareholder, holding over 40% of the company's shares, and had previously been recognized as the richest person in Hubei province [5]. Recent Events - Wang Linpeng was under investigation by the Wuhan Municipal Jianghan District Supervisory Committee, which was later changed to a directive for him to await further investigation [2][9]. - Following his death, Juran Zhijia's stock price fell sharply, with a nearly 7% drop on the day of the news [2]. Industry Context - The home furnishing industry has faced significant challenges due to the downturn in the real estate market, leading to decreased demand and declining revenues for companies like Juran Zhijia and its competitors [19][20]. - Other companies in the sector, such as Meikailong and Fusenmei, have also reported substantial losses, with Meikailong's revenue dropping by 32.08% year-on-year and a net loss of 29.83 billion yuan [20][21]. - The overall market for home furnishing is expected to continue facing pressure due to rising costs and a lack of consumer confidence, exacerbated by the ongoing economic uncertainties [23].