The King Of Socks Industry Is Deeply Involved In "Pyramid Selling Door".

Public information shows that the company is the only company that has "well-known trademarks in China", "China famous brand" and "national inspection free products". The well-known enterprises that have been famous for a while are now desolate.

According to the investigation of the sky, the group of 600137.SH holds 42.68% voting rights for its controlling shareholder, and Weng Rongjin, Weng Guanrong and Weng Rongdi share three shares in the group. At the same time, it is also the real controller and the concerted action of the company. In addition, giant wave technology also holds 19.84% stake in the company, which is the second largest shareholder and the remaining shares are scattered.

In December 6th, the announcement of two rounds of announcements by the shares of the group said that the 3 million shares of the big shareholder in 2016, which were used to guarantee the loan by the group, were finally lifted. However, as soon as they turned around, the group also pledged the 3 million shares to the Yiwu branch of Zhejiang Commercial Bank to supplement the liquidity.

This time, the 3 million shares of the pledge accounted for 7.23% of the shares owned by major shareholders, and at that time, the largest shareholder had already pledged 77.12% of the shares of the company. Although the company had repeatedly stressed that there was no liquidity problem among the controlling shareholders, it was necessary to rely on the pledge of such a high proportion of stock rights to supplement the working capital. The financial pressure of the group was not small. The second largest shareholder, giant wave technology, also extended the stock pledge of the shares of the shares of Sha Sha, which is used for financing guarantee, and the cumulative pledge is closer to 100%.

Not only the major shareholders, but also the pressure of Lun Sha shares is not small, the performance decline and suspected pyramid selling, and the "king of Hosiery Industry" has been bogged down.

Increasing revenue does not increase profits, but performance depends entirely on advertising support.

In 2007, the Changsha group of Changsha shares successfully entered the A shares. In that year, the shares of the company reached 133 million, the net profit to the parent company was 299 million, and the two share increased greatly.

However, starting from second years, the revenue of the company has expanded continuously, reaching the highest level of 438 million in 2013, three times more than when it first came into the market, but its net profit is entirely different. After second years of listing, its net profit dropped to 91.3%, only 25 million 996 thousand and 100.

Since then, no matter how the revenue growth, the net profit of the mother net is still showing a downward trend. In other words, this is the real net profit level of the company. In the latest three quarterly reports, the shares of rift stock still remain in the vicious circle of increasing profits but not increasing profits. The first three quarters of the year saw a slight increase of 1.72% compared with the same period last year, while the net profit of the parent company decreased by 22.07% compared with the same period last year.

The main business of the company is knitted underwear, knitted fabric manufacturing, wholesale and retail, import and export, and investment management consulting. It mainly produces and manages all kinds of thermal underwear, fashion underwear, shorts, bra and other knitted garments, as well as the OEM processing of foreign trade garments.

According to the semi annual data, the revenue composition of the group is divided into clothing manufacturing, sales and trademark royalty income. 99% is made up of clothing sales, of which nearly 70% comes from shorts.

There are two kinds of brand products including the brand of Lingsha, one of which is the takeaway, and the Lingsha underwear is mainly franchised stores. As of the end of the first half of 2019, there were only 2 Direct stores in Lingsha underwear, and there were no changes in the first half of the year, while the number of franchised stores was 429. Although there were 38 stores and 11 outlets in the first half of 2018, and the first half of 2019, the franchise was still the main battlefield of the sales of the Lingsha underwear.

In addition, the cat sister also noted that the performance of the shares of the Sha Sha shares had obvious matching relationship with the selling expenses. The annual sales cost was also good. The sales cost dropped sharply after 2013, and the performance was also plummeted. From the annual report of 2018, about 45% of the sales expenses of the shares of the Sha Sha share were advertising and promotion expenses, and TV shopping platform fees.

Lance knitting is suspected of pyramid selling, and small loan companies are also lawsuits.

The result is not good, but the dispute surrounding the shares of Sha Sha has not been broken.

In May, the administrative rulings issued by the people's Court of Huangmei County of Hubei province pushed the Lun Sha knitted organization to the front of people's suspicion of organizing pyramid selling. The Huangmei county market supervision and Administration Bureau filed a request to the court to freeze the related funds account of Lun Sha knitting in the financial institutions, so as to prevent the applicant from transferring or hiding the illegal funds.

According to China net financial and economic news, Lun Sha group's pyramid selling business first promoted the series of franchises in the "E+ life hall" in all parts of the country. The franchisees need to pay 20 thousand yuan deposit to get the qualification to join the club. Then, the franchisee training is used to train the franchisee's pyramid selling organization model and sales promotion method.

From the survey, China net financial reporter obtained the PPT data and live video of the "La Sha E+ life hall" joining training. It clearly includes the "sharing Award" and "counselling awards, consumer prizes, occupying Awards (8 levels and 8 generation income 2%)" grading sales, reward system, sales staff's salary incentives or rebates are linked to the number and level of development personnel.

The essential difference between pyramid selling and direct selling lies in that, when the organization needs to earn revenue through developing offline rather than selling goods, it has stepped into pyramid selling from direct selling, and it is obvious that Lour textile is like this.

It is worth mentioning that when it comes to direct selling, the group did plan to sell direct selling plates in 2017, and submitted applications to the Ministry of Commerce. But in fact, until today, when the cat Sister inquired about the relevant websites of the Ministry of Commerce, there was still no "Lall Sha" related enterprises being approved for direct selling and other related businesses.

In the afternoon of December 6th, the announcement of the announcement of the company's response to the public opinion controversy was a simple summary. It was "nothing to do with me". Whether it was "E+'s life Pavilion" or functional intelligent health care clothing, the company said that those were related party businesses, and the listed companies did not.

Indeed, it is not a group of subsidiaries of the company, but rather a group of controlling shareholders. It is at least a related party. However, it is not possible to say that it is totally not related.

First of all, whether the life hall or health dress is playing the banner of "Sha Sha", it can rely on the brand effect to fool the masses of consumers. Even if Lun Sha shares are not directly involved in organizing pyramid selling, the behavior of the related party will bring much damage to the brand reputation of the company.

Secondly, judging from the data of the relationship between the sky and the sky, the shares of lsha and lac are not only belong to the group of Lun Sha, but also the real controller of Weng Rongdi, who is also a senior manager of the company.

In addition, from the past year's report, the salsa shares also bought socks for salsa knitting for TV shopping and sales, and also received dyeing and processing services provided by Lufthansa knitting. It also sold BRIC products to Lingsha knitwear, which had a deep connection between the two businesses. In 2018, the salsa shares also made 16 million 275 thousand and 400 of the body underwear for salsa knitting sales hall, accounting for 4% of the total revenue.

In addition to pyramid schemes, the other company of the control company of lsha shares is also a law-breaking loan company. In recent years, it has been prosecuted or prosecuted for many disputes due to disputes over small loan contracts in recent years. In February 2019, it was found that illegal loans and corporate members suspected of job-related crimes were being investigated.