Is There Any Hope That Langsha'S Direct Sales License Will Be Affected By The Incident?

from Powerful The incident triggered a nationwide "health care" market The regulation of the storm is under way.

According to World Clothing, Shoes and Hats Network, on January 8, the State Administration of Market Supervision held a teleconference, which was organized by the State Administration of Market Supervision, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Civil Affairs, the Ministry of Housing and Urban Rural Development, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, the Ministry of Culture and Tourism, the National Health Commission, the State Administration of Radio and Television, the State Administration of Traditional Chinese Medicine Thirteen departments, including the State Drug Administration and the State Internet Information Office, decided to carry out a 100 day action to jointly rectify the chaos in the "health care" market nationwide from January 8, 2019. (Great storm! 13 central departments jointly issued a document to carry out a hundred day rectification of "health care" market chaos)

According to the Hundred Day Action Plan for Joint Rectification of "Health Care" Market Disorders jointly issued by 13 departments, the direct selling industry and direct selling products also belong to the scope of key rectification. "Strict market access of direct selling industry, suspension of direct selling related approval, filing and other matters." This means that enterprises who want to apply for direct selling licenses can temporarily give up, Enterprises that are being accepted have to press the pause button.

According to the list of enterprises publicized on the website of the Ministry of Commerce, a total of 46 enterprises nationwide are currently in the process of applying for direct marketing licenses. With the 100 day joint rectification action, it is unknown when these enterprises will be able to apply for direct marketing licenses. Among these lists, Lianhe Finance and Economics found a famous enterprise in China - "China Socks King" Langsha Holding Group Co., Ltd. (hereinafter referred to as "Langsha Holding") - which was publicized on June 20, 2017. It has been more than a year and a half since then.

In 2016, Langsha He started to set foot in WeChat business, claiming to be the largest "sock WeChat business" in China. Later, he tried to cross the water as one of the transformation directions. As a result, the direct selling license is still elusive, but there has been a report about Lufthansa's suspected direct selling without a license for a long time. Will Langsha's direct sales license cool down?

　　 Langsha: No comment on official actions

According to the introduction on the enterprise website, Langsha Holding is a limited liability company jointly invested by natural persons Weng Rongjin, Weng Guanrong and Weng Rongdi. The company was founded on June 22, 1995. The company is located at 308 Jingfa Avenue, Yiwu, Zhejiang Province. The registered capital of the company approved and registered by Yiwu Administration for Industry and Commerce is 600 million yuan. The business scope of the company is industrial investment, investment management consulting (excluding securities, futures and other financial businesses); Wholesale and retail of socks, underwear and yarn; Production and sales of electronic components. (Projects that must be approved according to law can only be operated after being approved by relevant departments.) It has 12 subsidiaries and joint-stock companies.

In May 2006, Langsha Holdings signed an agreement with Yibin State owned Assets Management Co., Ltd. to acquire 34.6713 million national shares of Changjiang Holdings for 70 million yuan. Since then, Langsha Holding has injected 100% equity of Langsha Underwear into the listed company at a price of 68.62 million yuan. Changjiang Holdings changed its name to "Langsha Shares (600137, Guba) (600137)", and Langsha Holdings became a major shareholder of the listed company.

At present, Langsha is a professional sock manufacturer in China, and also a famous brand enterprise in the industry. It is the only enterprise with "China Famous Trademark", "China Famous Brand Product" and "National Inspection free Product" at the same time. And among underwear enterprises, it is the only "industry landmark product" and "China's first underwear share" enterprise.

On June 20, 2017, the website of the Ministry of Commerce published the application for the direct marketing business license of Langsha Holding, and it was confirmed that Langsha would expand its direct marketing business. The publicity period is from June 20 to July 4, 2017.

However, after that, there was no news of Langsha's direct marketing license. Until now, what is displayed on the website of the Ministry of Commerce is still in the publicity period. In this regard, a source close to the Ministry of Commerce said that the reason why the application for the direct selling license has not been made is that it has not been completely determined which department of the Ministry of Commerce is responsible for the next step of direct selling due to the institutional reform. Moreover, the approval of direct marketing license covers a wide range of areas and takes a long time.

Now when the Quanjian incident occurs, the approval of the direct marketing license is suspended directly. Is there any hope that Langsha will engage in direct marketing? Weng Rongdi, president of Langsha Holdings and chairman of Langsha Shares, responded that he was not very clear about this matter, but it was difficult to comment on the official behavior. Langsha has been waiting for approval, and welcomes the media and investors to visit Langsha more.

Weng Rongdi said that this remediation is aimed at the health care market, while Langsha is a textile industry, which has no relevance. However, previous reports of China Business Daily (blog, microblog) show that the direct marketing of Langsha involves three major series: health food, nutritional food substitutes, and ecological home textiles.

　　 Exposed to be suspected of "direct selling without certificate"

Langsha's direct marketing license has been in the process of application. According to the Regulations on the Administration of Direct Selling issued by the Ministry of Commerce, enterprises must apply to the Ministry of Commerce of the People's Republic of China for direct selling business, and obtain a direct selling business license issued by the Ministry of Commerce after examination and approval. However, a lot of information has been exposed before that, Langsha has been secretly carrying out direct sales business, which is suspected of "direct sales without certificates".

According to reports, as early as 2016, Langsha has been carrying out direct sales business. The direct sales sector is called "Langsha Health". The gold system is a dual track system with four levels, namely, regular card, silver card, gold card and diamond card, with the amount of 2500 yuan, 5000 yuan, 10000 yuan and 20000 yuan respectively. In addition to the startup award, leadership award, repeat consumption award, etc. of traditional direct selling companies, there are also special mutual aid awards and encouragement awards, which are all daily wages paid every second.

Because the agent thought that he was cheated and asked to withdraw from the system, the return and refund of the returned goods had been involved for a long time, and the complaint was exposed after it was reported to the media.

On the local popular forum in Juzhou, Yiwu, there was a post that, according to media reports, questioned that Langsha's direct marketing was a disguised form of pyramid selling. Doubt Langsha's "bonus system adopted by Zhongmei System refers to three-tier distribution, direct promotion and bonus sharing, system bonus (1-8 layers), team award, dividend, etc.". It is not only "getting on the ship first and then buying tickets", but also suspected of changing direct marketing into pyramid selling.

It is also said that, in addition to the four tier system, Langsha's direct marketing system also sets the starting award as 50% of the two zones and 50% of the two levels, and the two will return to the original; Next is the drill card mutual aid award. One line receives the money. 0.1% of the 100 drill card members who joined the company before will receive the startup award permanently, which is equivalent to that the company has automatically equipped a team of at least 100 people since the day of joining the company; The third is the incentive award. Within the 20th floor of a single zone, 1% of all members touch each other. Theoretically, there are about 1 million members in the 20th floor. If only one thousandth of them is taken as 1% of the 1000 people, each will generate a sustainable startup award, which is an incentive award. (For example: 1000 people in a single zone will be awarded once a month, 8000 yuan x 1%=80 yuan, 80 yuan x 1000 people=80000 yuan/month); 4. Organization award, 10%~13%; The fifth is the leadership award, 5% of the system's generation 1 to 10 collision award; There are also various awards, such as the cancellation award and the travel award. That is, one line and single zone can get money, and the seven awards of the system are very lucrative.

However, Langsha has not responded to these statements and queries, and the regulatory authorities have not responded or reached any conclusions. So far, the "unlicensed direct marketing" and "pyramid selling" statements of Langsha are still in the stage of questioning.

　　 Quietly offline WeChat business

In addition to direct marketing, Langsha entered the WeChat business field earlier.

On the "Langsha News" - "Langsha Video" on Langsha's official website, there are several activity videos about WeChat business, all in 2016.

On the "Langsha News" channel, on June 16, 2016, an article entitled "Jinlangsha" to be the largest "Socks WeChat Business" in China was released.

On June 12, the 12th "Golden Langsha Maker Conference" hosted by Langsha Holding Group opened the minds of makers from all over the country.

Now, Langsha is going to transform into a WeChat business, launch its own WeChat business brand "Jinlangsha", and become the largest "sock WeChat business" in China. For Weng Rongjin, who is over 50 years old, it is undoubtedly a new challenge. "B2C is an online dealer to consumer, C2C is an individual store to consumer. Now we need to do WeChat business, let factories face consumers directly, minimize the middle environment, let consumers get the maximum benefits, and let the vast number of makers benefit from it."

It is reported that the launch of "Jinlangsha" is a unique brand between online and offline. Its foundation socks and cool socks in winter and summer have product patents, which are different from the past in product development, design and marketing.

But strangely, this article has been offline on Langsha's own website. Weng Rongdi replied that this was because Langsha wanted to do WeChat business before, but later it stopped. There was no demand for goods. "One dozen can also be mentioned", so it was not publicized.

Without vigorous publicity to the outside world, Langsha's various modes of wading, like direct marketing, are low-key when it comes to offline quietly.

　　 Pledge of almost all shares of major shareholders and second shareholders

Whether it is WeChat business or direct marketing, it is carried out on Langsha Holding, a major shareholder outside the level of listed companies, which seems to have nothing to do with listed companies. However, the brand of Langsha, and the tradition of "one family" in private enterprises, undoubtedly listed companies also endorse the practice of large shareholders.

There are many opinions that Langsha tries out marketing methods other than the traditional model to deal with the difficulties in performance. Since backdoor, it has been called "iron rooster" with almost no dividend.

According to the latest announcement, Langsha Holdings has just released the pledge of its shares in the listed company in Ruifeng Bank, and then pledged them to Zheshang Bank. As of the announcement date, Langsha Holdings has pledged 4100 shares of the listed company accumulatively 10000 shares, accounting for 98.81% of the total shares of listed companies held by major shareholders.

According to the third quarter report of 2018, the long-term high amount pledge of Langsha shares by Tibet Julang Technology Co., Ltd., the second shareholder, is still normal, with the pledge ratio of 99.98%.

The export business revenue of Langsha shares decreased by 80.97% over the same period last year, and the foreign trade OEM revenue decreased by 80.97% over the same period last year. Langsha Holding's operating profit from January to September 2018 was 3554911.22 yuan, and from January to September 2017 was 18413784.32 yuan. The net profit from January to September 2018 was 2666144.31 yuan, and the net profit from January to September 2017 was 17995153.11 yuan. Both declined significantly.

Weng Rongjin, chairman of Langsha Holding, said in his speech on New Year's Day, "We have a global perspective and a nationwide layout. The headquarters base is operating steadily. The Sichuan base is booming. The industry in Anhui and other bases is proceeding as scheduled. Lanyem has made a pleasant start. Small loan companies and marketing centers have made great efforts to make good progress in the development of major supermarkets and new online platforms, and various deployments have been promoted rapidly. This year, new countries have taken advantage of the "Belt and Road" to enter the world and serve overseas. The Ministry of Foreign Trade has expanded its business through all staff, and the international strategic layout has begun to take shape.

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