by Company publicly discloses plans for its Canadian acquisition for the 1st time
CHANGZHOU, CHINA — For the first time, Changzhou Jiangxin Duju Smart Home, aka MotoMotion, has publicly detailed its acquisition of Palliser Furniture, doing so as part of its semiannual report filed with the Shenzhen stock exchange on Friday.
In the narrative provided by the company’s general manager, Xu Meijun, the Palliser acquisition secured in late May is a “cornerstone step” in MotoMotion’s broader pivot toward a multibrand, multichannel platform for the U.S. market.
Xu outlines a strategic roadmap in which Palliser sits alongside MotoMotion, MotoSleep and SofaWorks, each targeting distinct consumer segments while all sharing the same back-end systems and support. A centerpiece of this strategy is branded store-in-store installations, which will bring the “smart” MotoMotion brand to retail throughout the U.S.
The semiannual report was translated from Mandarin to English by Anthropic’s Claude.
Anchoring a four-brand strategy
This first official disclosure comes on the heels of the July Las Vegas market, where MotoMotion showcased its brands in four independent showrooms. In Xu’s words, Palliser is an 80-plus-year-old North American brand known for its consumer-driven customization models, deep heritage, design development and established retail network.
Adding Palliser to MotoMotion’s global ecosystem, the company intends to maintain clear brand differentiation within the industry, from a trade perspective, as the Las Vegas exhibition strategy showed, while also leveraging centralized R&D, supply chain, quality control and global manufacturing infrastructure on the back end, according to the 199-page report.
Management is careful in the filing to emphasize that back-end platform integration will reduce duplication and cost, raise resource efficiency and expand market share without blurring each of the four brands’ unique identities within the industry. Since the acquisition, face-to-face transition meetings with the Palliser team in Canada have focused on aligning business strategy, supply chain coordination and cross-border operational discipline, Xu’s letter to shareholders stated.
“Palliser represents yet another kind of value,” Xu writes, translated from Mandarin. “Palliser gives us the opportunity to . . . enter a more diverse range of product categories and consumer markets.”
More generally, the report outlines daunting macro challenges, including a rugged retail landscape, tariffs and foreign exchange volatility. Despite these headwinds, MotoMotion maintained solid operational fundamentals that were driven by steady gross margins and strong cash flow from operations, as shown in the numbers included in the filing. (See chart below, generated by Gemini, which converted RMB into U.S. dollars; the numbers are not exact, therefore.)
Total revenue dipped 7% year over year to approximately $233 million for the first six months of 2026, while net profits dropped in large part because of currency valuations. The Chinese yuan appreciated roughly 3% against the U.S. dollar during the period, sending export revenues down by approximately $11 million, according to the report.
Net profit attributable to shareholders dropped almost 29% to $46 million primarily because of nonoperational macro factors, including foreign exchange losses and the U.S. tariff impact, according to MotoMotion leadership. Expenses related to financing surged more than four-fold year over year to $20 million. Products bound for the U.S. during the period were subject to a 25% tariff, but MotoMotion reports that it elected to eat a portion of the tariff burden to safeguard long-term retail partnerships. This dented first-half profits by more than $5 million.
For comparison, in a down year for Chinese exports to the U.S. in 2025, MotoMotion reported total sales of 3.4 billion yuan, or about $470 million, according to its public filings. That 2025 total was up nearly a third over 2024’s $373 million and nearly 80% over 2023’s $280 million.
Retail in the U.S.
Given these headwinds, unfavorable macros and nonoperational challenges, what’s MotoMotion’s plan?
The report details a continuing distribution shift toward large, high-quality U.S. furniture retailers. MotoMotion wants to be increasingly important to these top U.S. retailers to allow it to focus on these customers. All 10 of MotoMotion’s customers globally are in the U.S., eight of them retailers. Six of this 10 showed positive year-on-year purchasing growth ranging from 2.3% to 196%, according to the filing.
In addition, MotoMotion added 27 customers in the first half, 25 of these in the U.S.
This is all good, but what’s the secret sauce?
To capture end-consumer demand, MotoMotion is translating its platform capability into physical stores via point-of-purchase solutions and dedicated display concepts, chiefly in-store galleries. The brand’s products are featured in more than 1,000 U.S. retail locations, according to the semiannual financial filing.
The report highlighted the launch of the first fully iterated MOTO Gallery, at Knoxville Wholesale Furniture in Tennessee. Designed in tandem with retail leadership, the space integrates room setting aesthetics, including rugs, lighting and tables, around functional “smart” seating, offering a replicable, high-efficiency channel template for regional retailers, in the language of the report. Expect to see many more of these full-concept galleries spreading at U.S. retail like, if you’ll pardon the word choice, kudzu.
Knoxville Wholesale Furniture has two superstores (92,000 square feet and 120,000 square feet) and a clearance center.
“MotoMotion’s Store-in-Store and MOTO Gallery answer the question of how (our) capabilities reach the market, get closer to consumers, and ultimately convert into brand influence and sales opportunities,” Xu writes in his letter.
More generally, MotoMotion articulated again its commitment to strict financial discipline, stating that priorities will continue to be capital preservation, liquidity and long-term return on investment rather than a pursuit of growth for growth’s sake.
“As the Company’s coverage and depth of cooperation with U.S. retailer customers continue to improve, its understanding of, responsiveness to, and service capability for its core market will further strengthen,” Xu stated, “laying a more solid channel foundation for subsequent brand-building, product upgrades and expansion into additional product categories.”
The galleries and store-in-stores allow MotoMotion’s brand image to “accumulate continuously” at retail rather than disappearing entirely into the retailer’s own system after products are delivered, according to Xu’s narrative.
Cambodia in, Mexico out
As has been reported in this space, MotoMotion is building a smart furniture manufacturing facility in Cambodia as part of a project funded through the reallocation of IPO proceeds. The company went public in September 2021, or exactly five years ago. Following shareholder approval in July, MotoMotion allocated $48.3 million of unutilized IPO money to a comprehensive “Smart Furniture Capacity Expansion” that includes Cambodia. The expansion project is expected to add 400,000 square feet of production.
Another roughly $155 million in IPO proceeds have been put into “low-risk capital-preservation instruments,” the report states.
Last month, we reported the closure by Palliser of its production facilities in Saltillo in the Mexican state of Coahuila, a complex operated by Matamoros Holdings. Operations ceased in late July, according to multiple Spanish-language news sources, resulting in the shutdown of three factories.
It’s not clear what role if any MotoMotion played in this shutdown, which ended nearly three decades of production for Palliser in Coahuila and left 800-900 employees waiting on severance payments, according to multiple Spanish-language news accounts. According to CE Noticias Financieras’s reporting that cited a statement from Matamoros Holdings, MotoMotion acquired only the brand name and intellectual property of Palliser, with no interest in keeping the Mexican plants running.
“Matamoros Holding’s main customer was the Palliser brand,” according to a statement from Matamoros Holdings, translated from Spanish. “However, this brand was sold to a group of companies that decided to acquire only the Palliser brand and its intellectual property, as well as not continue with the manufacture of the brand in the facilities in Mexico.”
The Shenzhen filing by MotoMotion does not mention Mexico in any context.
