100 million in funds mysteriously disappear, and the CSRC quickly files a case after 5 days! What's going on with this mattress giant?

21st Century Business Herald Reporter Cui Wenjing

On April 1, Xilinmen released four major announcements in quick succession, bringing the company’s crisis directly into the spotlight: the CSRC has filed an investigation, the controlling party has been implicated, the shares of the controlling shareholder have been frozen—and even more unusually, the listed company itself has sued the controlling shareholder in court.

The fuse for all of this was a notice dated March 27—an amount of 100 million yuan from a subsidiary was illegally transferred by insiders. On the same day the announcement was issued, the Shanghai Stock Exchange’s regulatory work letter was delivered promptly, requiring a comprehensive self-audit.

Once the regulator’s “radar” was turned on, the truth quickly came to light. Under strong regulatory pressure, Xilinmen carried out a self-audit, and within just a few days it uncovered a shocking reality: the controlling shareholder, using complex methods such as loan re-lending and factoring financing, had long treated the listed company as its own “cash machine,” with non-operating funds占用 reaching as much as 190 million yuan.

From the Shanghai Stock Exchange’s letter on March 27 to the CSRC’s filing on April 1, it was only a five-day gap. Identify the problems, urge a self-audit, reveal the truth, and pursue accountability—regulators executed a well-played “lightning campaign.”

A company that once marketed itself with the idea of “protecting the spine” now, due to an internal governance “collapse,” has been pushed to the very edge of the ST designation.