Oh, my god
Review
On 31 march, red star america and karen released the 2025 annual report. During the reporting period, the company earned $6,582 million and the mother lost $23,722 million in net profits. The main causes continue to be fair value adjustments for investment properties and the impairment of related assets。
This is consistent with the logic of previous performance forecasts, but the annual report gives a clearer structural split: approximately $23,442 million of these are losses on the fair value of investment real estate and are typical non-cash items。
If this part of the factor is removed, it can be seen that the business of the company is sustainable. Net operating cash flows reached $816 million throughout 2025, a significant increase of 277. 34 per cent from $216 million in 2024 and a 2 percentage point increase to 61. 9 per cent in the gross gross domestic product (GDP) of core business services。
The principal “blood-making capacity” has been clearly repaired. Since its inception, the corporate financial structure and debt structure have been gradually improving. Financial resilience is increasing as the corporate assets are centralized and the business is markedly stable。
1. Realization of assets, greater visibility
The valuation logic of investment properties is essentially a discount for “future rental cash flow”. In the past few years, the property has gone down the cycle, the market has been depressed and the valuation of its own mall has been reduced。
Over the last few years, commercial property valuations have been under overall pressure, and the united states of america has opted for a more adequate one-time revaluation during this cycle. In terms of results, this round of “crowding” also brings the balance sheet closer to reality, although it places short-term pressure on the statements。
Most of the property held by merceron is located at the core of the first and second-line cities and is a typical platform for the operation of heavy assets, with no structural change in the core assets themselves and a more cyclical downward revision of book values。
According to this annual report, the master of the united states and kailong has made remarkable progress. As at 31 december 2025, the average rent rate for 74 self-employed and 218 commissions under the corporate umbrella had increased from 2024. Of these, the average rental rate at the own mall increased by 2 percentage points to 85. 0 per cent。
B. Enforcement of business and new acts
Over the past two years, there has been widespread pressure on home consumption and business operations, and red star america and kaylon have not simply shifted the pressure downstream, but have sought to operate buffer spaces for small and medium-sized businesses through phased concessions, flexible lease arrangements and adjustment of their recruitment policies. For brands that are partly more affected, the platform offers longer alignment windows and more flexible forms of cooperation in exchange for stability in the overall operation of the mall。
Red star america's mall is essentially an important infrastructure for home-based industries, with large numbers of small and medium-sized businesses and local employment. In the lower part of the industry, priority is given to stabilizing the business network and service capacity, helping to preserve the recovery base for the industrial chain. This “shared cycle” trade-off, while not necessarily reflected in short-term profits, is an important component of the long-term competitiveness of platform enterprises and fully reflects red star america and kaylon's sense of responsibility as platform enterprises in the counter-cyclical period。
Outside of jeanly, red star america and karen took the initiative to find new growth scenarios for businesses. By introducing new forms of business, such as new energy vehicles, smart home appliances, home clothes, lifestyle, etc., the market has evolved towards a comprehensive home-life landscape, reducing the cost of buying customers by extending the stay of consumers and improving the customer flow structure, and helping former furniture and building materials to achieve more stable human flows and transformation。
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According to the annual report, in 2025, the united states electric museum operated 1. 405 million square metres, increasing its size to 10. 1 per cent; and the area of automobile operations doubled from 160,000 square metres to 320,000 square metres, covering 46 cities throughout the country。
3 - financial indicators are good. Business trails show
First, look at the cash flow. Net operating cash flows reached $816 million throughout 2025, an increase of 277. 34 per cent over the same period。
In terms of net cash flow indicators alone, it is true that there have been many consecutive seasons in the past, and that there has been a daily run-off of blood, especially in recent quarters where single-season cash flows have been positive。
Look at the cost. The full range of efficiency gains from mature national management experience-enabled companies, with company operating costs, sales costs and management costs falling by 18. 95 per cent, 18. 59 per cent and 24. 22 per cent, respectively, in 2025, exceeded the decline in operating income。
Net profit performance, without taking into account the loss of new fair value movements, is in fact calculated to be close to the balance of gains and losses or even to be positive, with the company starting in the third quarter。
The finance end is also synchronized. In 2025, the cif cost rate was optimized from 5. 1 per cent in 2024 to 4. 4 per cent, and the interest cost fell from 2,531 million yuan to 2,160 million yuan。
In addition, at the end of 2025, the combined size of united states notes payable and accounts payable decreased by 43. 79 per cent compared to the end of the previous year, and historical obligations were being maintained。
Taken together, the main industry of red star america and kaylon has been back on track for a long time, and the annual-caliber business trail is gradually emerging。
4. Initiatives within industry adjustment
“initiative change” is the key term proposed by the new management, including the reduction of the above-mentioned efficiency gains and optimization of the asset allocation, and a new five-year strategy was issued last september, proposing the future of “new business operators for home living” and “home-based industry ecological service providers”。
Despite electric shocks and fluctuations in industry cycles, red star america's main track is home-grown, a genetic problem. The main course is simply to be upgraded and the future mall will be more diverse, intelligent and young, offering not just furniture, but a whole-of-home solution and consumption experience。
In the future, for example, it will ensure that no less than 70 per cent of the core household area is occupied and that it will build up an excellent business capacity; for example, it will focus on young consumer groups, introduce a trend pattern, digitize marketing, upgrade services, etc。
Retrospective 176, the call of a 30-year-old player
