For years, Dare Global (000910.SZ) sat comfortably atop China’s home improvement sector, earning the moniker of the 'Flooring King' through its ubiquitous Shengxiang brand. However, the company’s latest annual report for 2025 reveals a business in a state of controlled collapse. Net profit attributable to shareholders plummeted by 90.41% to a mere 13.34 million RMB, marking the seventh consecutive year of earnings decline.
This fiscal freefall is not a sudden shock but a chronic erosion of value that began in 2019. Over the last seven years, the firm has seen its growth trajectory invert, with year-over-year profit contractions accelerating from marginal dips to the current near-total wipeout. Total revenue for 2025 fell by 14.49% to 4.57 billion RMB, reflecting a broader malaise in China’s residential construction and renovation markets.
The internal mechanics of the company show deep structural strain. Four major subsidiaries are now loss-making, including the flagship Shengxiang Group, which reported a net loss of 132.7 million RMB. Furthermore, the company’s operating cash flow has turned sharply negative, decreasing by over 100% year-on-year. This liquidity squeeze suggests that Dare Global is no longer generating enough cash from its core operations to sustain its current scale.
Despite the dismal performance, corporate governance at the firm is under intense scrutiny. Chairman and President Chen Jianjun received a compensation package of 2.37 million RMB in 2025, the highest among major listed peers in the wood products industry. This decoupling of executive pay from shareholder value—at a time when R&D investment is being slashed by nearly 30%—raises significant questions about the board's strategic priorities and its ability to navigate a protracted industry winter.