EASYHOME(SZ:000785) Sou Hu Cai Jing·2025-07-29 06:00Core Viewpoint - The sudden death of Wang Linpeng, the chairman and CEO of Juran Zhijia, raises concerns about the company's future and highlights the risks associated with capital operations detached from solid management and profitability [1][15]. Company Overview - Juran Zhijia New Retail Group Co., Ltd. was established in 1990 and is one of China's leading home furnishing retailers, covering retail, manufacturing, and an integrated online-offline sales platform [4]. - Wang Linpeng was a significant figure in the home furnishing industry, having led the company to success and controversy [4][6]. Recent Events - On April 18, 2025, Wang Linpeng was placed under investigation by the Wuhan Municipal Jianghan District Supervisory Committee, with the reasons for his detention undisclosed [3]. - He was released from detention on July 23, 2025, only to pass away just four days later [3]. Financial Challenges - As of the end of Q1 2025, Juran Zhijia's debt pressure is significant, with a debt-to-asset ratio of 57.07% and short-term borrowings totaling 4.691 billion yuan, while cash and cash equivalents stood at only 1.674 billion yuan, a 35.68% year-on-year decline [7]. - The company's operating income for 2024 was 12.966 billion yuan, down 4.04% year-on-year, and net profit fell by 40.83% to 769 million yuan [7]. - The cash flow situation is concerning, with operating cash flow decreasing by 31.31% year-on-year to 2.635 billion yuan in 2024, and investment cash flow showing a net outflow [9]. Market Reaction - Following Wang Linpeng's death, Juran Zhijia's stock price opened at 2.84 yuan per share, experiencing a daily decline of 6.96% to close at 2.94 yuan [13]. - The company's financial metrics indicate a downward trend, with liquidity ratios falling below conventional safety lines, suggesting increasing financial pressure [11].