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Caixin News, November 21 (Reporter Fu Jing) Due to the planned change of control, a-zenith home furnishings (603389.SH) issued an emergency suspension notice before the market opened on Monday, but the company immediately announced the termination of the matter tonight, and its stocks will resume trading starting tomorrow.

The company announced tonight that during the suspension period, the controlling shareholder shanghai a-zenith investment Co., Ltd. and the trading party failed to reach a consensus. To protect the interests of all shareholders and the company, the controlling shareholder decided to terminate this change of control matter. The relevant trading party did not ultimately sign a substantive agreement regarding the specific plans for this transaction, and all parties do not bear any violation responsibility for terminating this transaction.

a-zenith home furnishings stated that the operation situation of all its businesses is currently normal, and the termination of this change of control matter will not have a significant adverse impact on the company’s operating performance and financial status.

Caixin News reporters noted that tonight's announcement did not explicitly reveal the specific situation of the unresolved negotiations, but in the announcements after the market closed on the 18th and 19th, a-zenith home furnishings mentioned that the controlling shareholder had discussed the core terms of the transaction with the buyer. Recently, media reports indicated that the controlling shareholder of a-zenith home furnishings is looking for a buyer.

Caixin News reporters found that in May this year, the controlling shareholder of the company transferred 13.1376 million shares of the company to Xie Kai, representing 5% of the total equity of the listed company, with a transfer price of 4.00 yuan per share, totaling 52.5504 million yuan.

In fact, in recent years, due to the continuous decline in the real estate market, the home furnishings sector, being a strongly related industry, has shown a sluggish overall market performance, and a-zenith home furnishings has been under continuous pressure in its performance. Financial data shows that since 2018, the company has accumulated losses of nearly 0.5 billion yuan, and its non-recurring net profit for the first three quarters of this year was -56.7259 million yuan.

It is reported that to save its performance, a-zenith home furnishings has sought mergers and acquisitions multiple times, such as acquiring 65% of the shares of jiangsu new product aluminum industry company and 100% of the shares of jingmei asia vets, but ultimately came to nothing. A-zenith home furnishings also attempted to enter the diamond business, but this transformation did not boost its performance.

Today, the company stated that if the financial indicators for the 2024 fiscal year do not improve effectively, the company's stocks may be subject to (delisted) risk warnings.

It is worth noting that right before this suspension, a-zenith home furnishings' stock price had risen for several consecutive days, with a cumulative increase of 20.69% from November 7 to November 15. As of the close on November 15, a-zenith home furnishings was reported at 7.35 yuan/share, with a maximum intraday increase of 8.07%.