100 million yuan embezzled, 900 million yuan funds frozen, a well-known brand "Please investors pay attention to investment risks"! Shanghai Stock Exchange urgently issues a letter→

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According to media reports on March 28, “China’s first mattress stock,” Spring City (603008.SH), released an announcement on March 27, disclosing that funds from the accounts of its controlling subsidiaries were illegally transferred and that the company had already put certain bank accounts under protective freezes.

Photo source: Spring City’s official website

Spring City has proactively put relevant bank accounts

under protective freezes,

and is working around the clock to recover losses

The announcement shows that recently, Spring City discovered that funds in the bank accounts of its controlling subsidiary, Xitu Technology Co., Ltd., were illegally transferred, with the total transferred amount reaching 100 million yuan. After verification, the company found that relevant personnel allegedly misappropriated company funds by taking advantage of their positions.

In the announcement, Spring City stated that, to further prevent risks to fund security and safeguard the funds of the listed company, it applied to the public security authorities for filing and investigation on March 26, 2026, and placed the potentially involved bank accounts under protective freezes.

As of the disclosure date of the announcement, the total amount of funds illegally transferred from the bank accounts of Spring City’s controlling subsidiaries was 100 million yuan, and the amount of protective judicial freezes was approximately 900 million yuan. Together, the two add up to over 1.0 billion yuan, accounting for 26.54% of the company’s most recent audited net assets and 42.69% of its most recent audited monetary funds.

Spring City said that the freezing of the above bank accounts is a protective freeze proactively carried out by the company to protect fund security, and there is no situation where the accounts were frozen by a third party. The matter may have a certain impact on the controlling subsidiaries’ normal use of funds in the short term, but considering the company’s cash flow situation overall, it will not temporarily constitute a major adverse impact on the company’s overall production and business activities.

Spring City said the company is currently doing its utmost to cooperate with the public security authorities to investigate and verify the relevant matters. On the premise of ensuring the safety of account funds, it will push forward the unfreezing of the frozen accounts and fully pursue the recovery of illegally transferred funds, striving to eliminate the relevant adverse impacts as soon as possible and effectively safeguard the legitimate rights and interests of the company and all its shareholders.

Regarding this sudden black-swan incident, Spring City said that, as of now, the recovery of the illegally transferred funds still involves a certain degree of uncertainty. If the funds cannot be recovered, it may have an adverse impact on the company’s net profit. The company will continue to monitor the progress of the above matters and promptly fulfill its information disclosure obligations. Investors are kindly reminded to be mindful of investment risks.

The Shanghai Stock Exchange quickly issued a regulatory letter

Such a major internal control crisis and abnormal funds immediately triggered heightened vigilance from regulators.

After the incident, the Shanghai Stock Exchange quickly issued a regulatory work letter, covering the listed company’s directors, senior management, and the actual controller.

The company involved in this incident is Spring City’s controlling subsidiary—Xitu Technology. This company was an important piece that Spring City had high hopes for and intended to use to expand its new business blueprint.

At the time of its establishment,

Spring City clearly assigned

Xitu Technology an extremely important strategic mission:

responsible for the development and expansion of the hotel channel business

What is heartbreaking is that, although this subsidiary was originally created to enhance the company’s overall competitiveness and bear the heavy responsibility of expanding hotel sales channels, it has now, possibly due to serious internal management loopholes, become the source of the listed company’s major “blood loss.”

According to Spring City’s official website, since the company was founded in 1984, its business spans more than 70 countries and regions worldwide. Currently, Spring City has seven production bases globally, more than 5,200 stores, over 10,000 employees, and products used in home, hotels, apartments, and various commercial scenarios.

Source | News Workshop, Red Star Capital Bureau, Red Star News, and The Daily Economic News

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