As shifting trade policies and order relocations sweep through global markets, even China's leading home furnishing companies find themselves navigating turbulent waters. Markor International Home Furnishings Co., Ltd. (SHA: 600337), a major A-listed manufacturer, has made the difficult decision to suspend operations at two wholly-owned subsidiaries in Tianjin while pursuing a strategic transformation.
Production Suspension: Core Manufacturing Bases Idled
In early January 2026, Markor announced the shutdown of Markor International Furniture (Tianjin) Manufacturing Co., Ltd. and Markor International Furniture Processing (Tianjin) Co., Ltd., effective January 1. These subsidiaries represented crucial production hubs for the company, marking a significant operational realignment.
The relocation of European and American orders to Southeast Asia and Mexico has precipitated a dramatic decline in performance. Financial disclosures show Tianjin Manufacturing's revenue plummeted from 602 million yuan in 2024 to 281 million yuan in the first three quarters of 2025, with net profits swinging from a modest 300,000 yuan gain to a 56 million yuan loss. The processing subsidiary similarly recorded losses of 23 million yuan and 12 million yuan during comparable periods.
Company filings attribute the decision to chronic underutilization, with both facilities operating below 20% capacity as export orders shifted to Markor's Vietnamese operations. The suspension aims to streamline assets, mitigate losses, and facilitate strategic repositioning.
Financial Strain Catalyzes Transformation
The move comes amid mounting financial pressures. By June 2025, Markor's debt-to-asset ratio reached 63.1%, with short-term liabilities totaling 1.83 billion yuan. Third-quarter results showed consolidated revenue down 10.1% year-over-year to 2.22 billion yuan, though net losses narrowed to 220 million yuan.
Concurrently, the company unveiled plans for a major acquisition on December 31, 2025—a share-and-cash deal to purchase Shenzhen Wondertek Optoelectronics Technology Co., Ltd. in its entirety, accompanied by a targeted fundraising round.
Wondertek Acquisition: Betting on Advanced Manufacturing
Wondertek specializes in high-speed copper cable interconnects, a technology with growing applications in data centers and artificial intelligence infrastructure. Preliminary financials indicate revenue growth from 45.98 million yuan in 2023 to 76.29 million yuan in the first nine months of 2025, with net profits expanding from 3.98 million yuan to 18.35 million yuan during the same period.
The transaction represents Markor's strategic pivot toward advanced manufacturing sectors. Shareholders of the target company include Shenzhen Wonder Asia Technology Partnership (83.32% stake), individual investor Li Shaofeng (16.67%), and Shenzhen Dastone Investment (0.01%).
Industry Implications and Future Prospects
Markor's restructuring reflects broader challenges facing traditional manufacturers amid evolving trade dynamics and technological disruption. The company's dual focus on operational optimization and technological diversification offers a case study in corporate adaptation.
While the success of this transformation remains uncertain, Markor's proactive approach demonstrates how legacy manufacturers might navigate structural industry shifts. The company's ability to balance its core business with emerging technologies will prove critical to its long-term competitiveness.
The development underscores the importance of strategic agility in global manufacturing, where trade policy fluctuations and technological advancements continue to reshape competitive landscapes across industries.