The former flooring industry leader, in its darkest hour, Daya Shengxiang’s 2025 performance sets the worst record in history.

Da Ya Sheng Xiang (000910.SZ), which once echoed throughout the industry with the slogan “Sheng Xiang flooring, carrying the dreams of millions of households,” is now facing the most severe operating crisis since its listing. On March 30, the company released its 2025 annual report, turning in what can only be described as the “worst-ever” set of results—its three major core performance indicators collapsed across the board. Revenue has fallen back to the level of eighteen years ago, and its non-recurring profit (after excluding certain items) has even posted losses for the first time. The halo of a former industry leader has completely faded.

In 2025, Da Ya Sheng Xiang’s financial condition deteriorated sharply, with multiple core indicators hitting historical lows. Data show that the company’s full-year operating total revenue fell to RMB 4.58B, down 14.49% year over year, reverting to the scale seen in 2006. Attributable net profit plunged from RMB 139 million in 2024 to RMB 13.34M, a decline of more than 90%, marking the seventh consecutive year of decline in attributable net profit. Even more worrying is that non-recurring profit, which best reflects the real operating situation of its main business, fell by 115.98% year over year to -RMB 17.61M—its first negative value since listing—indicating that the company’s core operating business has lost its ability to generate profit.

The collapse in performance was not sudden, but rather showed clear quarterly volatility and a sustained downward trend. In Q1 2025, the company recorded a substantial loss of RMB 69.5 million. In Q2 and Q3, performance briefly improved, with cumulative profit reaching RMB 73.15 million. However, in the fourth quarter, the situation reversed sharply: the company posted a single-quarter loss of RMB 59.84 million, nearly wiping out all profits from the first three quarters, ultimately dragging full-year performance to its lowest point. At the same time, the company’s profitability continued to worsen. Its net profit margin dropped from 2.53% to -0.15%, and its weighted average return on net assets fell to only 0.20%, meaning shareholders’ capital could barely generate any meaningful return.

The deterioration in cash flow has only made things worse for the company. As a heavy-asset manufacturing business, cash flow is the lifeline of an enterprise. In 2025, Da Ya Sheng Xiang’s net cash flow from operating activities turned from positive to negative, reaching -RMB 34.5476 million, down 104.7% year over year—its first time since 2000. Although the company still has RMB 2.71 billion in cash on its books, combined with non-recurring losses and the ongoing RMB 2.1 billion cross-sector project investment, this “paper wealth” cannot mask the liquidity pressure. The company has therefore cut research and development expenses by 29.08% to ease funding constraints, sowing hidden risks for long-term development.

The core root cause of this performance avalanche is the simultaneous shrinkage of its two main core businesses. Wood flooring and engineered panels are the absolute pillars of the company’s revenue, accounting for more than 83% in total. Yet in 2025, both declined sharply.

Among them, wood flooring revenue was RMB 2.75B, down 16.11% year over year, with both production and sales declining at the same time. Revenue from medium- and high-density fiberboard was RMB 1.12B, down 18.26% year over year, with production down by nearly 20%. The contraction of the core businesses directly hollowed out the company’s revenue “fundamental base.” Although it attempted to cultivate the wood doors and wardrobe business, which grew 96.63% year over year, that segment’s revenue was only RMB 87.7284 million—far from enough to fill the gap.

With the core businesses weak, the company’s cross-industry transformation also failed to become a lifeline. At the end of 2023, Da Ya Sheng Xiang spent RMB 2.14 billion to enter the aluminum sheet strip and battery foil sectors, aiming to open a second growth curve. However, by the end of 2025, the project was still in the infrastructure construction and trial production stage. Cumulative investment was 43.83% of the budget, and it had not yet generated any substantive revenue. Instead, because project construction raised management expenses, the company’s management expenses increased by 10.75% year over year to RMB 612 million in 2025, further eroding profits and becoming a key driver behind the non-recurring net profit turning to losses.

Da Ya Sheng Xiang’s predicament is also a snapshot of the entire flooring industry. As the real estate sector undergoes deep adjustment, the flooring industry has entered a stage of fighting over existing volume. Fei Ling Ge has suffered losses for nine consecutive quarters. Del Future is also expected to post losses of more than RMB 160 million in 2025. The industry as a whole has been experiencing an in-depth adjustment after the end of the “incremental era.”

For Da Ya Sheng Xiang, whose net profit has declined for seven consecutive years and which recorded non-recurring losses for the first time, the path to recovery is long and difficult. If it cannot stabilize its core businesses soon and drive the aluminum sheet strip project to full production and improved efficiency—while balancing cash flow with R&D investment—whether this former flooring leader can get out of this darkest moment remains full of uncertainty.

Source: Manager Network

Editor: Cao Cong

Proofread by: Zhi Yan