Competitive pressure on market stock continues to increase, and traditional home furnishing companies have turned to the AI smart track to seek a breakthrough.
According to news on May 26, the Shanghai Main Board IPO application of Baolun Shares, which was participated by Shen Hanbiao, Chairman of Holike, has been accepted by the Shanghai Stock Exchange.
Public information shows that Baolun Co., Ltd. is mainly engaged in “sound, light, electricity, video, and communication” system solutions. This capital layout is regarded as an important measure for Holike to deepen its development in the smart track.
In recent years, Holike has comprehensively promoted the “high-end customization + AI smart home” brand strategy. However, behind the transformation and investment is the reality that the company’s performance continues to be under pressure.
The annual report shows that Holike’s revenue in 2025 will fall by 12.80% year-on-year, and net profit will fall by more than 80% year-on-year; entering 2026, performance pressure will further intensify.
In the wave of smart homes, Holike is trying to seize the opportunity through a dual-line layout of investment and transformation.
In terms of investment, Holike Chairman Shen Hanbiao invested 52 million yuan in Baolun shares, and its application for an IPO on the main board was recently accepted.
Baolun Co., Ltd.’s main business is “sound, light, electricity, video, and communication” systems. Its “itc” brand is a well-known brand in the domestic professional audio-visual field. It has maintained the first market share in the fields of public broadcasting, professional sound reinforcement, and conference systems for three consecutive years. Its products have been used in major landmark projects such as the Beijing Winter Olympics and Xi’an Datang Evernight City.
As to whether the chairman’s investment in Baolun Shares will empower Holike in the future, relevant staff at Holike said that the company has not received relevant news at present, and the equity investment may be an external investment by the leader.
The prospectus stated that Shen Hanbiao transferred the above shares for a share transfer price of 52 million yuan based on his optimism about the development prospects of Baolun shares and the industry.
At the same time, Holike’s industrial layout is also accelerating.
In March 2025, Holike, Haomaitai and Bee Assistant jointly established Hemi Technology to continue building a smart home IoT platform.
In July of the same year, Holike successfully transferred the equity of Jixiang Technology through public delisting, further accelerating the development and implementation of new technologies and products in smart home scenarios.
Hollike stated that the successful transfer of Jixiang Technology’s equity through public delisting will help Hemi Technology and Jixiang Technology form a closer strategic synergy, accelerate the development, implementation and upgrade of Hemi Technology’s home-side “smart fusion gateway” product, and enhance the competitiveness of the company’s whole-house smart solutions.
After the product is launched, in December 2025, Hemi Technology’s first ecological experience store will be settled in Guangzhou Hanyin Plaza.
In January this year, Hemi Technology’s full range of new whole-house smart products were publicly unveiled for the first time at the Holike Dealer Summit, and the core content of smart homes such as smart gateways, smart controls, smart lighting, and smart security were publicly released for the first time.
Holike said that the company has currently launched an internal recruitment plan and will carry out intelligent upgrades on a batch of Holike offline stores in 2026. It will deeply integrate Hemi AI smart home based on existing stores and provide end users with product experience through real scenarios.
Behind Holike’s vigorous promotion of smart strategy, perhaps the main business continues to be under pressure.
In 2025, Holike achieved operating income of 1.665 billion yuan, a year-on-year decrease of 12.80%; and a net profit of 14.6724 million yuan, a year-on-year decrease of 81.78%.
Entering 2026, Holike’s performance will continue to be under pressure.
In the first quarter of this year, Holike achieved revenue of 277 million yuan, a year-on-year decrease of 29.03%; net profit turned from profit to loss, with a loss of 22.1101 million yuan, a year-on-year decrease of 1104.69%.
In fact, starting from 2023, Holike’s performance will continue to be under pressure.
From 2023 to 2024, Holike’s revenue will be 2.265 billion yuan and 1.910 billion yuan, respectively, with year-on-year declines of 19.78% and 15.69%; net profits will be 217 million yuan and 80.521 million yuan, respectively, with year-on-year declines of 49.60% and 62.93%.
From a product perspective, Holike’s revenue will only grow in 2025 from cabinets and finished products.
Specifically, in 2025, the overall wardrobe revenue of Holike’s main business will decline by 18.10% year-on-year; the wooden door revenue will decline by 15.65% year-on-year; the cabinet revenue will increase by 9.99% year-on-year; and the finished product supporting revenue will increase by 0.29% year-on-year.
In terms of channels, Holike’s core dealerships will achieve revenue of 1.220 billion yuan in 2025, down 19.37% year-on-year, with gross profit margins of 35.28%, down 0.71% year-on-year; direct-operated stores will achieve revenue of 36 million yuan, down 42.70% year-on-year, with gross profit margins of 49.12%, down 2.88% year-on-year.
Regarding the decline in gross profit margin, Holike said that from the segmented data disclosed in the annual report, it can be seen that if we only observe the store business, its gross profit margin is relatively stable; the overall gross profit margin has declined, mainly due to the increase in the scale of bulk business with lower gross profit margin, which is caused by changes in the revenue structure.
Holike’s bulk business will achieve revenue of 339 million yuan in 2025, a year-on-year increase of 36.52%.
However, the gross profit margin was only 11.34%, down 2.85% year-on-year.
The gross profit margin is far lower than the 35.28% of distribution channels and 49.12% of direct-operated stores.
The increase in the proportion of low-margin businesses is continuing to squeeze Holike’s profit margins.
Industry analysts believe that the current overall home furnishing market has entered the stock stage. Traditional industries represented by the pan-home furnishing industry are facing development bottlenecks such as shrinking traditional orders, insufficient consumer demand for individualization, and some companies falling into homogeneous price wars.
It is difficult to achieve significant results by relying solely on small adjustments and resource integration at the tactical level. This market situation is forcing some home furnishing companies to accelerate strategic transformation.
Faced with the continued shrinkage of its main business and the decline in net profits, Holike has pinned its hopes of breaking through on AI smart homes.
However, whether this transformation path can truly lead companies out of trouble remains to be tested.
From the perspective of profitability indicators, in 2025, Holike achieved revenue of 1.665 billion yuan, operating costs of 1.150 billion yuan, and a comprehensive gross profit margin of 30.96%, a year-on-year decrease of 2.44 percentage points; in the first quarter of 2026, the gross profit margin further dropped to 24.25%, a year-on-year decrease of 5.57 percentage points.
In addition, Haolike’s non-net profit has changed from 51.9282 million yuan in 2024 to -5.6302 million yuan in 2025, and the main business is suffering from obvious losses.
In the first quarter of 2026, the net profit after deducting non-profit items further expanded to -27.3386 million yuan, a year-on-year decrease of 658.53%.
Industry analysts said that the core of Holike’s continued losses stems from the weakness of its main business and the pressure on its internal operations.
When a company’s core business is no longer able to contribute positive profits, it means that its own hematopoietic capacity is already quite fragile, and any additional investment or cost fluctuations may aggravate losses.
As the smart home market continues to expand, young consumer groups are unleashing their demand for smart and customized homes.
Holike is trying to find new growth points through the deployment of AI smart homes, which is also a strategic choice to adapt to the development of the industry.
However, judging from the current situation of Holike itself, whether the AI smart home business can truly reverse its decline still faces many challenges.
As an important enterprise for Holike to enter the smart track, Hemi Technology will have a net profit loss of 2.229 million yuan in 2025.
In addition, Holike’s R&D investment has also shown a shrinking trend year by year. Holike’s R&D expenses have dropped from 164 million yuan in 2021 to 85 million yuan in 2025.
Industry analysts believe that competition on the smart home track is becoming increasingly fierce. Not only are technology giants such as Xiaomi and Huawei strong in the field, but traditional home appliance companies such as Midea and Haier have also been deeply involved.
As a customized home furnishing company, Holike has entered the hardware matrix field, and there are obvious gaps in technology accumulation and brand recognition.
AI transformation has opened up a second growth curve for Holike to a certain extent, but whether it can truly be the antidote for companies to get out of performance difficulties depends on, on the one hand, whether Laike’s smart home business can achieve large-scale revenue in the short term, and on the other hand, whether it can create synergy with Holike’s existing custom home business.
