Author: Xiong Xiaomeng
Produced by: Global Finance Theory
Another listed company was placed on file for investigation, this time it was the turn of the well-known home textile brand Mengjie shares.
On the evening of November 23, Mengjie Co., Ltd. issued the "Announcement on Receiving the Notice of Case Registration from the China Securities Regulatory Commission", due to suspected information disclosure violations and violations, the CSRC filed a case against the company and related personnel, including Jiang Tianwu, chairman of Mengjie Co., Ltd., Li Jing, vice chairman, Li Jianwei, director, Li Jun, director and secretary of the board of directors, and Zhang Aichun, a shareholder.
Image source: Mengjie stock announcement
Previously, on October 11, the Shenzhen Stock Exchange announced the decision on giving notice and criticism to Hunan Mengjie Home Textile Co., Ltd. and related parties. At that time, the violations involved included failure to make performance forecasts before January 31, 2022, appropriation of funds by controlling shareholders and other related parties, and illegal provision of external financial assistance.
According to the 2021 annual report, Mengjie shares recognized a other receivable, which was a transaction with Ye Yifeng during the reporting period, with a balance of 66.0273 million yuan at the end of the period, and the company fully made provision for bad debts. Ye Yifeng is the legal representative of Fujian Dafang Sleep Technology Co., Ltd., a holding subsidiary of Mengjie Co., Ltd., providing 66.0273 million yuan for it, accounting for 3.66% of the audited net assets of Mengjie Co., Ltd. at the end of 2020.
It is worth noting that Mengjie only disclosed the "2021 Annual Performance Forecast" on April 27, 2022, and the net profit was in a loss state, and the performance forecast was not made before January 31, 2022 as required.
In 2021, Mengjie achieved an operating income of 2.463 billion yuan, a year-on-year increase of 10.93%; Net profit attributable to was -156 million yuan, turning from profit to loss year-on-year. According to the latest financial report, the net profit loss attributable to Mengjie shares in the first three quarters of 2022 reached 98.0671 million yuan, a year-on-year decrease of 456.9%, and the net cash flow generated by operating activities also plummeted.
Although the current chairman of Mengjie Co., Ltd. is still Jiang Tianwu, the former actual controller and concerted actor of Mengjie Co., Ltd. transferred control to Changsha Jinsen New Energy Co., Ltd., with a total amount of 385 million yuan. At that time, Mengjie said that the transfer was conducive to resolving the tight capital situation of the company's major shareholders, optimizing the shareholder structure and governance structure of the listed company, and enhancing the company's overall strength. At present, Li Guofu has replaced Jiang Tianwu as the new actual controller of the listed company, and the market has speculated whether Mengjie shares will switch to the new energy track.
Image source: Mengjie stock announcement
According to the data, Mengjie Co., Ltd. focuses on the main business of home textiles, and has many brands such as Mengjie, Sleep, Mengjie Baby, Mengjie mattress, plain aesthetics, etc., and its products include 10 categories. In 2021, Mengjie Co., Ltd. decided to enter the high-end home textile track and enter high-end department stores such as SKP in Beijing, and in the same year, Xiao Zhan was officially announced as the brand spokesperson. However, many decisions have had little effect at present, and although the number of directly operated stores increased in the first half of 2022, there was negative growth in franchised stores.
With Mengjie shares officially being investigated by the China Securities Regulatory Commission, the risks of major shareholders are difficult to solve, the performance dilemma is difficult to solve, and how to develop in the future is still unknown, what do you think about this?