Jing Ji Guan Cha Wang·2025-11-24 10:04Core Viewpoint - The governance issues at Dream Jie Co., Ltd. have been exposed through a whistleblower report by board member Chen Jie, highlighting serious allegations against key executives for misleading disclosures and mismanagement of company funds [1][4]. Group 1: Allegations and Governance Issues - Chen Jie accused Chairman Jiang Tianwu and Secretary Li Jun of using deceptive practices to mislead regulators and harm minority shareholders' rights [1][4]. - The core of the controversy revolves around the accounting treatment of a loan of 63.3763 million yuan owed by Ye Yifeng to the subsidiary Fujian Dafa Sleep Technology Co., Ltd., which was improperly classified as a bad debt without board approval [2][3]. - Chen Jie has faced personal threats and harassment for raising these concerns, including allegations of drug use and a suspicious car accident [1][2]. Group 2: Financial Management and Regulatory Actions - The Hunan Securities Regulatory Bureau found that Dream Jie and its subsidiary failed to pursue the recovery of the loan from Ye Yifeng, leading to a lack of proper financial management and internal controls [2][3]. - The company had previously reported a balance of 66.0273 million yuan owed by Ye Yifeng as of the end of 2021, which was later reduced to 63.3763 million yuan by September 30, 2025 [2]. - Chen Jie proposed a temporary motion to reclassify the bad debt back to accounts receivable, which was rejected by Li Jun [2]. Group 3: Control and Ownership Changes - The control of Dream Jie shifted when Changsha Jinsen acquired 10.17% of the shares and gained 19.77% of the voting rights through agreements with existing shareholders [5]. - Following the acquisition, significant changes occurred in the board of directors, with a majority now aligned with Changsha Jinsen [5][6]. - The actual control of Changsha Jinsen was found to be linked to Liu Bian'an, who is under investigation for illegal fundraising activities, leading to the freezing of shares and resignations from the board [6][7]. Group 4: Financial Performance and Market Position - Dream Jie has been a leader in the high-end bedding market for 16 consecutive years, but its financial performance has declined, with revenues dropping from 24.63 billion yuan in 2021 to an expected 17.15 billion yuan in 2024 [8]. - The company reported net losses of 1.56 billion yuan and 4.48 billion yuan in 2021 and 2022, respectively, with a slight recovery in 2024 showing a profit of 24.8785 million yuan [8]. - Despite the recovery, the company closed over 400 stores in the past year, and revenue for the first three quarters of 2025 is projected to decline by 7.97% year-on-year [8].