Sagging Sales Drag Down Wealth Of Sofa Billionaire

This story is part of Forbes’ coverage of Hong Kong’s Richest 2024. See the full list here.

Man Wah Holdings founder and chairman Wong Man Li saw his wealth plummet by a third to $2 billion as sales at the Hong Kong-listed sofa and bedding maker sagged at home and overseas.

Mainland China’s overbuilt property sector, with its empty apartment towers, was Wong’s biggest headache, while inflation squeezed demand in North America, the firm’s No. 2 market by revenue. Investors shared the concern, pushing shares down 46% in the past year. Earnings improved somewhat in the first half to September as a pick-up in U.S. consumer spending helped clear inventory. Net profit rose 4%, compared with a 15% drop for the year ended March 2023 on revenue of HK$8.9 billion ($1.1 billion).

Wong has been shifting production out of China to avoid tariffs from Washington. His biggest factory for U.S.-bound products is now in Vietnam, and last year he brought another onstream in Mexico.