Lun Sha Denied Losing Profits Or Benefited From Alleged Pyramid Selling, Saying That The Listed Companies Were Not Involved.

"The smart health dress is a series of functional products produced by shareholders' units and affiliated enterprises," the company said.

In December 6th, Sichuan's Cmi Holdings Ltd (600137) released the clarification notice on media reports.

The announcement said that the media coverage of the loss or benefit from the alleged pyramid selling business of Lun Sha shares is not in line with the company's reality.

In December 5th, some media reported that the "socks king" Lun Sha transformation suspected of being a pyramid selling company listed on the performance or relying on this support, reported that the "sock king" known as the "Sha Sha Holdings Limited" (hereinafter referred to as "lone Sha group") in recent years has entered the trough. In order to get out of the trouble, the group has chosen a way of "winding streets and secluded ways" -- developing various functional "health care clothes", and then opening the "La Sha E+ life hall" franchise as the lead, and doing business on suspicion of organizing pyramid selling in various places.

In response to this, the company issued a notice in December 6th.

One, about the "Hosiery Industry King suspected of pyramid selling account was frozen by the court".

The company said that the controlling shareholder of the company is the control group, the actual controller is Weng Guanrong, Weng Rong Jin, Weng Rongdi brothers three people, at present, Weng Rongdi is the tenth chairman of the board of directors of the company, the company's legal representative. The main business of the listed company is underwear sales, and the hosiery business is the related party of the same substantive controller. The content of the news report is in the beginning of May this year, and the shareholders' units and related parties have been properly handled.

Reporters in Hubei province Huangmei County People's Court issued an administrative ruling (Document No.: (2019) 1127 row 24 trial No. 24) to see that the applicant Huangmei county market supervision authority in the investigation of the applicant's lat Sha Knitting Co., Ltd. suspected of organizing pyramid selling, in order to prevent the applicant Lai Sha Knitting Co., Ltd. to transfer or hide the illegal funds, the applicant Huangmei county market supervision and Administration Bureau on May 2019 7 to Huangmei County People's Court of Hubei province applied for a request to freeze the applicant's lat Sha Knitting Co., Ltd. in the financial institutions related funds account.

The ruling said that after examination, the people's Court of Huangmei County of Hubei province held that the application of the Huangmei county market supervision and Administration Bureau was in accordance with the law. In accordance with the regulations of the State Council's "pyramid selling Ordinance", the eighth item of the fourteenth paragraph and the Seventy-eighth interpretation of the Supreme People's court, the freezing of the related funds account of the applicant's lat Sha Knitting Co., Ltd. in the financial institutions.

According to the data of the sky eye, the big shareholder of La Sha Knitting Co., Ltd. is not associated with the group.

Two, on the "franchised store's nationwide flowering, suspected pyramid selling mode conceals".

The company said that the "La Sha E+ life hall" series franchise business for shareholders and related party units to carry out the marketing mode, listed companies did not participate.

According to the report of "socks king" Lun Sha transformation suspected of pyramid selling listed companies' performance or relying on this support, according to the introduction of the informants, the lsso group expanded its business in this way: first, we promoted the series of "La Sha E+ life hall" franchise stores everywhere. Franchisees need to pay 20 thousand yuan deposit to qualify for membership. The shops of franchisees are required to meet the specified requirements of "E+". Next, we will train franchisees' organization mode and sales promotion mode based on the training of franchised stores.

Three, on the "Lun Sha share losses or benefit from suspected pyramid selling business".

In 2016, 2017 and 2018, the main accounting data of Lash's shares in the past three years (audited) are as follows:

Among them, from 2016 to 2018, the amount of related transactions between the company and shareholders and related parties were 33 million 696 thousand and 300 yuan, 34 million 195 thousand and 800 yuan and 26 million 9 thousand and 200 yuan respectively, accounting for 12.52%, 9.96% and 6.71% of the current operating income respectively. Three. The company said it was a normal associated transaction between listed companies and shareholders and related parties. The performance of listed companies benefiting from shareholders and related parties is not in line with the company's reality.

Titled "socks king" Lun Sha transformation suspected of pyramid selling listed companies' performance or relying on this support, the report said, in the information and videos mentioned, the lash group began to implement the suspected pyramid selling business point of time in March 2016, from 2017 to 2019, the specific mode has undergone four changes, forming the current mode of suspected pyramid selling under the form of franchised stores. In the 2011-2015 years, the net profit attributable to listed companies decreased year by year. In 2016, it was the turning point of the performance of the company. In the 2016-2018 year, the net profit of the shares continued to grow. In 2018, the listed companies also welcomed their first dividend.

Four, the "smart health clothes" make a big hole.

"The smart health dress is a series of functional products produced by shareholders' units and affiliated enterprises," the company said.

The announcement said that at present, the production and operation of the company are normal, and the daily operation has not changed significantly. There are no other important information that should be disclosed and not disclosed.

Entitled "socks king" Lun Sha transformation suspected of pyramid selling listed companies' performance or support, reported that the series of functional products produced by the companies of the Sala group include Ms. Lun Sha's comfortable and breathable palace protective underwear, Lun Sha men's magnetic energy stone functional underwear, Ms. Lun Sha's adjusted body bra, lvsha Tongluo physical therapy socks and so on. Product publicity staff claimed that the series of products of La Sha belongs to the category of smart wear, which specifically shows that the temperature of underwear and socks can be controlled by mobile phone APP.