Core Viewpoint - The company, Meike Home, is facing significant challenges due to a combination of a declining real estate market and tightening consumer spending, leading to a continuous drop in revenue and persistent losses over the past three years [1][5]. Financial Performance - Meike Home has experienced a cumulative loss exceeding 1.6 billion yuan from 2022 to 2024, with a loss of 879.8 million yuan in the first half of this year, although this is a significant reduction from the 2.76 billion yuan loss in the same period last year [5][6]. - The company's revenue for 2024 was 3.395 billion yuan, down 18.83% year-on-year, while operating costs only decreased by 6.23% to 2.243 billion yuan [6]. - The direct sales business, which is a core segment, saw a revenue decline of 25.74% in 2024, with operating costs increasing by 0.70% [7]. Operational Challenges - The company has been facing cash flow issues, with a debt ratio of 63.10% and only 156 million yuan in cash as of June 2025, indicating that short-term assets cannot cover short-term liabilities [7]. - The number of Meike Meijia stores decreased from 141 in 2023 to 111 in 2024, with a further closure of 12 stores in the first half of this year [7]. Employee and Supplier Issues - There have been reports from employees about delayed salary payments, with some claiming wages have not been paid for several months [2][3]. - Suppliers have also reported unpaid debts, with one supplier winning a lawsuit against Meike Home for unpaid renovation fees from 2022 [3]. Market Adaptation and Strategy - The company is attempting to adapt to market trends by introducing modern minimalist furniture designs, but the pace of change has been slow due to its large scale [9]. - Meike Home is diversifying its business model by combining direct sales and franchising, while also expanding into new markets and product lines, including aging-friendly and integrated home solutions [10][11].

Core Viewpoint - Employees of Meike Home have reported multiple months of unpaid wages, indicating significant financial distress within the company [2][3][4] Employee Compensation Issues - Employees have claimed that wage delays began in 2024, initially extending to one week and later escalating to several months [3] - A group of over 400 employees has formed to address wage disputes, with many reporting unpaid commissions and severance [4] - Meike Home has also been accused of owing payments to suppliers, with one supplier winning a court case for unpaid renovation fees [4] Financial Performance and Challenges - Meike Home has experienced a decline in revenue for three consecutive years, with cumulative losses exceeding 1.6 billion yuan from 2022 to 2024 [6][7] - In the first half of 2024, the company reported a loss of 87.98 million yuan, although this was a significant reduction from the previous year's loss of 276 million yuan [6] - The company's revenue for 2024 was 3.395 billion yuan, down 18.83% year-on-year, while operating costs decreased only by 6.23% [7] Operational Adjustments - The company has been reducing its store footprint, with the number of Meike Home stores decreasing from 141 in 2023 to 111 in 2024 [8] - Despite reducing store area by 19.20%, rental and property costs increased by 12.47% to 496 million yuan [8] - As of mid-2025, the company's debt situation has worsened, with a debt-to-asset ratio of 63.10% and cash reserves of only 156 million yuan [9] Market Adaptation and Product Strategy - Employees have noted a mismatch between Meike Home's product offerings and current market trends, particularly a shift towards minimalist designs preferred by younger consumers [10] - The company has attempted to adapt by introducing modern minimalist products, but the pace of change has been slow due to its large scale [10] - Meike Home is also diversifying its business model by combining direct sales with franchising to enhance market penetration [11] Growth Initiatives - The company is expanding its international business, achieving over 807 million yuan in revenue from international operations in the first half of 2025, accounting for more than 50% of total revenue [11] - Meike Home is focusing on large-scale business collaborations with leading real estate companies and high-end hotels, which have become a new growth driver [11]