China Net Finance on December 13 (Reporter Li Yu Zhao Rong Yang Binyu) On December 6, listed company Langsha Co., Ltd. (600137.SH) issued a clarification announcement, saying that Langsha Co., Ltd. did not participate in the related business suspected of “pyramid scheme”. However, the facts investigated by the reporter show that the close relationship between Langsha and the major shareholder Langsha Group and its affiliated enterprises in all aspects of equity and business cannot be cleared. It is also an indisputable fact that many investors involved in Langsha’s suspected “pyramid scheme” business have no return.
The atmosphere of the conference was warm, and the collective was fooled into “entering the set”
The whistleblower, Ms. Shen (pseudonym), told reporters about the process of her being fooled by Langsha Group into “trapping”. Ms. Shen was previously engaged in the sales industry, and in September 2016, she went to Yiwu to participate in the promotion meeting of the first phase of Langsha E+ Life Museum under the warm introduction of a friend. At the meeting, the promoter of Langsha Group introduced the main product – beauty underwear. It is said that this underwear, which looks no obvious different from other underwear on the market, has internal conditioning and external shaping effects, so it is priced at more than 5,000 yuan.
How can you sell underwear at a price of more than 5,000 yuan? The promoter taught the model of three-level distribution and 8-layer 8-generation cumulative commission (for details of this model, please refer to the December 5 report on this website “”Sock King” Langsha Transformation Suspected of MLM Listed Company Performance or Relying on It”), and described some “exciting” success stories – most participants did not clearly realize that this method is the typical model of “MLM”.
According to Ms. Shen, the promoter at the meeting told everyone that paying an agency fee of 60,000 yuan can have the qualification to exclusively open the Langsha E+ Life Museum in the agency area, and at the same time enjoy a lifetime 3.8% discount on purchase. In addition, because the quota is very sought-after, a deposit of 10,000 yuan is required, promising to let the living hall officially operate within the specified time. Under the “inflammatory” introduction of the promoters and the “positive response” of some participants, the atmosphere was extremely hot! Many participants, including her, were “enthusiastic” and enthusiastically paid 60,000 yuan in agency fees and 10,000 yuan in security deposits. As more and more people joined, the agency fee rose to 180,000.
It is worth noting that the collection accounts for agency fees and deposits are private bank accounts named “Weng Guanrong”. Weng Guanrong is one of the three brothers of the founder of the Langsha brand and is currently a shareholder of the Langsha Group. According to Ms. Shen, all the franchise and operation contracts of Langsha E+ Life Center were signed with Langsha Holding Group Co., Ltd.
“MLM” cannot be promoted, and the investment is lost
At the end of 2016, Ms. Shen began to rent and decorate a house in her location, opened Langsha E+ Life Museum according to the requirements of Langsha Group, and spent a total of more than 700,000 yuan before and after the efforts and investment made for “development offline”. However, because she really does not “pyramid scheme”, she bought a bunch of beautiful underwear from Langsha Group with a price of more than 5,000 yuan, and she couldn’t sell a single piece, and all the initial investment was lost.
When the rent of the shop expired, Ms. Shen decided that she would rather not have a deposit and not renew the lease. “I don’t have any money anymore. A lot of the money invested before came from loans. Now in order to repay those loans, I can only keep doing small loans from some online loan platforms, tearing down the east wall to make up for the western wall,” Ms. Shen told reporters. In this process, due to the failure of some small loans to repay in time, Ms. Shen’s personal credit was greatly affected.
In addition to the financial difficulties, what makes Ms. Shen even more sad is that a friendship of more than ten years has also broken up. Because a friend believed in her vision, he also opened a Langsha E+ life museum in the adjacent area, and the last hundreds of thousands of people went into it without return, and he and Ms. Shen have not had contact so far.
Since the second half of 2017, Ms. Shen has embarked on a long road of rights protection. I wrote a letter of complaint and went to Yiwu with other rights defenders to find the local petition department. However, the local petition department did not accept it. According to Ms. Shen, Langsha Group is resolute in refusing to return the goods, let alone compensation. She heard that some rights defenders had to jump off buildings at the Langsha Group’s office because of their miserable situation, and in this case, the Langsha Group did not “show weakness”.
According to the reporter’s current incomplete list, there are about 480 people across the country who reported the Langsha Group, which is similar to Ms. Shen’s experience. If calculated according to the funds involved in 200,000 yuan per capita, the amount involved is already about 100 million.
The Clarification Announcement Is Getting Blacker and Blacker It is difficult for listed companies to clear their relationships
Langsha issued a clarification announcement on December 6, which was full of loopholes and had the effect of drawing more and more black.
First of all, in the announcement, the listed company said that its main business is the manufacture and sales of underwear products, and related parties (referring to affiliated enterprises such as Langsha Knitting) are engaged in socks business. The “Langsha E+ Life Hall” series of franchised stores operates as a marketing model carried out by shareholders and related parties, and the listed company does not participate. According to Ms. Shen’s report, the products used by Langsha Group suspected of pyramid marketing business – all the goods with a unit price of more than 5,000 yuan entered by all paying participants, including her, are Langsha brand underwear, and these underwear obviously come from Langsha shares – relevant information shows that in 2018, Langsha shares sold 16.2754 million yuan of supporting underwear to Langsha knitting life hall, accounting for 4% of the total revenue.
In the clarification announcement, Langsha explained that these are normal related party transactions. The specific amount of its related party transactions was 33.6963 million yuan in 2016, accounting for 12.52% of the operating income; In 2017, 34.1958 million yuan, accounting for 9.96% of the operating income; In 2018, it was 26.0092 million yuan, accounting for 6.71% of the operating income.
After the above data was released, it was concluded that “the performance of listed companies benefiting from shareholders and related parties is not in line with the company’s reality”.
Judging from the previous annual reports, Langsha Co., Ltd. also purchased socks from Langsha Knitting for TV shopping sales, also accepted the dyeing and processing services provided by Langsha Knitting, and also sold e-commerce combination supporting underwear products to Langsha Knitting, etc., and the two businesses are deeply related.
Secondly, public information shows that the actual controllers of Langsha Group are Weng Guanrong, Weng Rongjin and Weng Rongdi, and the three people hold the equity of Langsha Group, and are also the actual controllers and concerted actors of Langsha Shares. Among the shareholders of Langsha shares, Langsha Group accounts for 42.68% of the shares and is the controlling shareholder. Judging from the relationship data of Tianyancha, Langsha shares and Langsha knitting not only belong to Langsha Group, but Weng Rongdi, the actual controller of Langsha shares, also serves as an executive in Langsha Knitting.
Third, from the company’s report, the revenue composition of Langsha shares is divided into clothing manufacturing sales and trademark royalty income. However, the reporter inquired in the Trademark Office of the State Intellectual Property Office and found that there were a total of 254 registered trademarks containing the word “Langsha”, almost none of which belonged to Langsha shares. Among them, there were 78 items with the name of the applicant “Langsha Knitting Co., Ltd.” and 119 items in “Langsha Holding Group Co., Ltd.”
Fourth, in the previous report “”Sock King” Langsha Transformation Suspected MLM Performance of Listed Companies or Relying on It”, it was introduced that the performance change curve of listed companies in the past 8 years is closely related to the process of Langsha Group and its affiliates carrying out suspected pyramid scheme business. It is worth noting that since the Hubei Huangmei account freezing incident in May 2019, the suspected pyramid scheme business carried out by Langsha Group and its affiliates has been affected, and correspondingly, the growth rate of operating income of Langsha shares in the first half of the year to the third quarter of 2019 decreased from 3.49% to 1.72%, and the growth rate of net profit changed from -15.11% to -22.07%.
( Author: Li Yu Zhao Rong Yang Binyu Editor: Yang Binyu )