For nearly two decades, DareGlobal (Power Dekor) stood as the undisputed titan of China’s flooring and wood panel industry. However, the company’s 2025 annual report paints a picture of a domestic champion in a state of terminal decline. Revenue has regressed to 2006 levels, and for the first time in its listed history, the firm recorded a negative non-recurring net profit. This financial unraveling is not merely a byproduct of China’s cooling real estate market, but the culmination of systemic governance failures and a series of environmental and social scandals that have eroded its brand equity.
At the heart of Power Dekor’s dysfunction is a Shakespearean family feud that gripped the company following the death of its founder, Chen Xingkang. Between 2018 and 2020, the founder’s widow, daughter, and two sons engaged in a public and litigious battle for control that nearly paralyzed the firm’s operations. Although the infighting subsided after the tragic passing of the younger son, Chen Xiaolong, the scars remain visible. Highly concentrated ownership has led to a lack of independent oversight, manifesting in regulatory warnings from the CSRC regarding undisclosed executive bonuses and accounting irregularities.
The company’s environmental, social, and governance (ESG) profile has similarly collapsed. Once a member of the prestigious Alashan SEE, a premier Chinese ecological association, Power Dekor was unceremoniously expelled in 2018 for persistent pollution violations at its subsidiaries. Despite subsequent attempts to 'green' its image through automation and biomass energy, the company was hit with fresh administrative penalties in 2022 for operating production lines without mandatory environmental approvals. This pattern of non-compliance suggests a corporate culture that views environmental regulations as optional hurdles rather than core responsibilities.
Consumer trust, the bedrock of any household brand, is also fraying. Digital platforms like Black Cat and the national 12315 hotline are flooded with complaints alleging that Power Dekor products are prone to warping, blackening, and, in some cases, the use of inferior or fraudulent materials. Compounding these quality issues is a breakdown in the company’s service ecosystem, with manufacturers and distributors frequently passing the buck, leaving consumers with no recourse for repairs or refunds. These social failures directly translate to the 16.11% drop in flooring revenue recorded this past year.
In a desperate bid to find a 'second growth curve,' management has pivoted toward the capital-intensive battery foil and aluminum sector. While the company has already sunk over 43% of its budget into this new venture, the project remains in the infrastructure phase, acting as a massive drain on liquidity rather than a profit center. With over 71% of the controlling shareholder's stakes pledged as collateral and the core business hemorrhaging cash, Power Dekor is walking a financial tightrope. Its struggle serves as a cautionary tale for Chinese private enterprises that fail to modernize their governance before their founding generation passes the torch.