Meike Home Enters Pre-Reorganization, Controlling Shareholder's Restructuring Formally Accepted

On April 30, 2026, Meike Home (600337.SH) announced that the Urumqi Intermediate People’s Court has filed and registered its pre-reorganization application and designated auxiliary institutions to manage the process. According to the company’s filing notice, the court appointed Beijing Jindu (Haikou) Law Firm and Xinjiang Jucen Law Firm as joint auxiliary institutions to oversee the pre-reorganization, which includes public recruitment and selection of reorganization investors. On the same day, the court formally accepted the reorganization application of the company’s controlling shareholder, Meike Investment Group Co., Ltd.

Pre-Reorganization Filing and Controlling Shareholder Restructuring

On April 29, 2026, Meike Home received the Pre-Reorganization Filing Notice (Case No. (2026) Xin 01 Po Shen (Pre) 1) from the Urumqi Intermediate People’s Court, confirming that the court has filed the company’s pre-reorganization application submitted by creditor Wuxi Kuaile Commercial Management Co., Ltd.

The court’s determination document specified that Beijing Jindu (Haikou) Law Firm and Xinjiang Jucen Law Firm will jointly serve as the company’s pre-reorganization auxiliary institutions. To advance the pre-reorganization process, resolve the debt crisis, and restore and enhance the company’s sustainable operations and profitability, the auxiliary institutions have decided to publicly recruit and select reorganization investors.

The recruitment aims to introduce investors with quality industrial resources and substantial financial strength who can provide capital, management, and industrial support. These investors will comprehensively optimize the debtor’s assets, liabilities, and equity structure, integrate industrial resources effectively, and assist the company in achieving new-quality productivity upgrades and business model iterations.

The company noted that the effectiveness of the reorganization investor recruitment and selection conducted during the pre-reorganization period will extend to Meike Home’s subsequent formal reorganization proceedings. Absent special circumstances, the company will not conduct separate reorganization investor recruitment after formally entering the reorganization program.

The court’s filing of the pre-reorganization application does not represent formal acceptance of a reorganization application, as stated in the announcement. The pre-reorganization program aims to identify the company’s reorganization value and feasibility, improving the efficiency of subsequent reorganization work. As of the announcement date, uncertainty remains regarding whether the reorganization application will be formally accepted by the court and whether the company will subsequently enter the formal reorganization program.

On the same day, Meike Home announced receipt of a civil ruling from the court confirming that the Urumqi Intermediate People’s Court has formally accepted the reorganization of Meike Investment Group. The controlling shareholder holds 488 million shares of the listed company, representing 33.99% of total shares, all of which have been subject to judicial sequential freezing. The court’s acceptance of the controlling shareholder’s reorganization may affect the listed company’s equity structure and result in adjustments to shareholder equity.

Meike Home stated that the company maintains independent and complete business operations and autonomous management capability, with personnel, assets, and finances kept separate from Meike Investment Group. The controlling shareholder’s reorganization will not materially impact the company’s daily production and operations.

Financial Crisis: Four Years of Losses Exceeding 3.728 Billion Yuan, Overdue Debt Exceeding 724 Million Yuan

The reorganization reflects the operational and debt difficulties faced by Meike Home.

Financial data shows that for the full year 2025, Meike Home realized total operating revenue of 2.612 billion yuan, a 23.05% year-over-year decline. Net profit attributable to the parent company recorded a loss of 2.104 billion yuan, a significant expansion from the loss of 864 million yuan in the same period of the prior year. Non-GAAP net loss reached 2.081 billion yuan.

Over the past four years, Meike Home accumulated losses totaling 3.728 billion yuan. As of the end of 2025, the company’s net assets attributable to the parent company plummeted to 620 million yuan, shrinking by more than 77% from 2.746 billion yuan at the end of the prior year. Unallocated profits stood at negative 1.409 billion yuan.

Entering 2026, conditions have not improved. In the first quarter of this year, Meike Home realized operating revenue of 471 million yuan, a 35.18% year-over-year decline. Net profit attributable to the parent company recorded a loss of 212 million yuan, compared to a profit of 105 million yuan in the same period of the prior year, representing a shift from profit to loss.

More concerning is the company’s cash flow situation. As of the end of 2025, the net cash flow generated by operating activities was only 49.4824 million yuan, a 26.43% year-over-year decline. Net cash flow from financing activities was negative 686 million yuan, while the company held cash and cash equivalents of 62.5538 million yuan.

As of March 31, 2026, the company and its subsidiaries had overdue unpaid debt totaling 724 million yuan, representing 26.38% of the most recent audited net assets attributable to the listed company shareholders. Of this amount, overdue financing from financial institutions totaled 590 million yuan, and unpaid commercial acceptance bills reached 135 million yuan.

The controlling shareholder’s burden is equally severe. In an April 8 guarantee overdue progress announcement, the company disclosed that as of that date, it had provided nine guarantees for the controlling shareholder with total overdue guarantee amounts of 517 million yuan and remaining guarantee balances of 504 million yuan. According to reports, Meike Investment Group faces early loan recalls from banks, resulting in a significant increase in guarantee overdue amounts.