(Yicai) Dec. 26 -- Markor International Home Furnishings, a mid-to-high-end furniture brand known for armchairs priced at CNY20,000 to CNY30,000 (USD2,846 to USD4,268), is planning to acquire control of a computing power-related company as it accelerates store closures across China amid prolonged losses in its core business.

Markor said in a trading suspension progress announcement yesterday that it is considering acquiring a controlling stake in Shenzhen-based Wandtec Optoelectronic Technology through a combination of share issuance and cash payments, while also raising supporting funds. Markor’s shares have been suspended from trading since Dec. 18 and will remain halted today.

According to Markor’s announcement from last week, the proposed transaction is still at a preliminary planning stage, with the target’s valuation yet to be finalized. Key details, including audit and assessment results, the transaction amount, and the proportion of shares and cash involved, have not been determined.

Founded in 2018, Wandtec specializes in the production of high-speed copper cables, with products supporting transmission rates ranging from 25 gigabits per second to 800G. Its cables are mainly used in data centers and artificial intelligence servers, areas that have seen surging demand as cloud computing, Big Data, and artificial intelligence continue to expand rapidly.

Wandtec has been gaining new investors lately. Luxshare Precision Industry, a major supplier to Apple, announced last year that it would invest CNY60 million (USD8.5 million) in Wandtec through a capital increase, acquiring a 16.7 percent stake after completion.

Markor’s push into a new sector comes as its furniture business has remained unprofitable for three consecutive years until 2024. Since last year, the company has been closing stores across multiple regions in China.

According to its financial statements, Markor recorded revenue of CNY3.4 billion (USD483.7 million) last year, down 19 percent year on year, with a net loss of CNY880 million (USD125.2 million). In the first half of this year, its operating revenue fell 8 percent from a year earlier to CNY1.5 billion, while losses reached CNY317 million.

Markor closed 27 underperforming stores, mainly in lower-tier cities, in 2024. It shut four more inefficient outlets in the first half of 2025 and closed another nine directly operated stores in the third quarter.

Editor: Emmi Laine