At the end of the year, two leading companies in the home furnishing industry, Kuka Home and Oppein Home, successively disclosed external guarantee announcements, providing financial support for the operating development of their subsidiaries and demonstrating their strategic plans to optimize capital allocation and expand their business footprint.

On December 19, 2025, Kuka Home announced that it would provide a joint liability guarantee for the comprehensive credit business of its wholly owned subsidiary, Kuka Home Ningbo Co., Ltd., or Kuka Ningbo, with Ping An Bank Hangzhou Branch, with a maximum principal balance of 298 million yuan. It is reported that the comprehensive credit line applied for by Kuka Ningbo this time does not exceed 600 million yuan, and the funds will be used flexibly according to operating needs. The guarantee period is three years from the date of expiration of the debt performance period, and the scope of the guarantee covers the principal of the debt, interest, penalty interest, and related expenses for realizing creditor's rights. As a core business carrier of Kuka Home, Kuka Ningbo was established in 2013 and operates in information technology consulting, import and export trade, internet sales, and other fields. In the first three quarters of 2025, it achieved operating revenue of 7.219 billion yuan, net profit attributable to the parent company of 556 million yuan, and total assets of 7.086 billion yuan, reflecting sound business performance.

Following that announcement, Oppein Home disclosed progress on its guarantees on December 20. The company provided an 800 million yuan joint liability guarantee for the credit business of its holding subsidiary, Guangzhou Oppein Integrated Home Furnishing Co., Ltd., or Oppein Integrated, with Bank of China Guangzhou Baiyun Sub-branch. This guarantee amount falls within the annual estimated external guarantee quota of 20 billion yuan approved at the company's first extraordinary shareholders' meeting of 2025. The guarantee period is three years from the expiration date of each debt performance period. According to the information disclosed, Oppein Integrated is one of Oppein Home's core production bases, with the company holding a 70% stake. In the first three quarters of 2025, it had total assets of 8.366 billion yuan and achieved net profit of 198 million yuan, while its business scale continued to expand. It is worth noting that Oppein Integrated's asset-liability ratio exceeded 70%, but Oppein Home's board of directors stated that the guaranteed party has debt repayment capability and that the guarantee risk is within a controllable range.

Both companies emphasized that the guarantees were intended to meet the funding needs of their subsidiaries for business development, that the decision-making procedures complied with the Company Law and the provisions of their articles of association, and that there was no situation harming the interests of the company or minority shareholders. As of the announcement date, Kuka Home's cumulative external guarantee balance stood at 1.173 billion yuan, accounting for 11.91% of its latest audited net assets, while Oppein Home's cumulative external guarantee balance was 2.6. billion yuan, accounting for 13.65% of its latest audited net assets. Neither company has any record of overdue guarantees.

Industry insiders believe that the concentration of guarantees provided by home furnishing enterprises to their subsidiaries at the end of the year is not only a practical measure to support the expansion of production and operations in their business segments and optimize capital turnover, but also reflects the strategic considerations of leading enterprises to consolidate supply chain advantages and enhance overall competitiveness during the industry's transformation period. As the guaranteed funds are gradually put in place, the business layout of both leading companies is expected to become more complete, laying a solid foundation for market competition in 2026.

Source: Pan-Home Circle