MENDALE(SZ:002397) Tai Mei Ti A P P·2025-10-27 13:11Financial Performance - In the first three quarters of 2025, the company reported revenue of 366 million yuan, a year-on-year increase of 9.76%, and a net profit of 26.52 million yuan, up 28.69% year-on-year, indicating steady growth [2] - However, the company faces ongoing financial integrity disputes, with board member Chen Jie publicly questioning the authenticity of financial data and citing issues such as "financial data distortion" and "false records" [2][3] Governance and Control Issues - Chen Jie has raised concerns about a 63.38 million yuan illegal financial support to a subsidiary, which has not been recovered and was fully provisioned as bad debt, highlighting a lack of proper financial procedures [3] - The company has been embroiled in a complex ownership struggle since 2017, leading to a fragmented shareholder structure with no clear controlling party [4][5] Operational Challenges - The company's core product categories, including bedding and home textiles, have seen revenue declines of 20% to 30% year-on-year, with new business initiatives showing little progress [6] - The company has closed 113 stores in the first half of the year, with significant drops in revenue per store, indicating operational difficulties [7] Market Position and Strategy - The company has experienced significant volatility in performance, with a peak revenue of 2.604 billion yuan in 2019 followed by losses exceeding 600 million yuan from 2021 to 2022 [8] - Despite efforts to reposition as a high-end bedding brand and collaborations with top designers, these strategies have not yielded significant improvements in financial performance [8][9] Industry Context - The home textile industry is currently facing a phase of stock competition due to real estate adjustments, exacerbating the company's challenges related to governance, financial integrity, and market competitiveness [9]