The jewelry retailer's stock price collapsed by 49% in a single day following its controlling shareholder's disappearance, exposing a financial cliff that emerged with startling speed.

On September 11, shares of Beijing Qianye Jewelry Co., Ltd. opened locked at 0.43 yuan per share, plunging 49.41%. Combined with the prior day's 28.57% decline, the two-session cumulative drop reached nearly 78%, with total market value shrinking from 93.85 million yuan to 47.4774 million yuan. Approximately 46.37 million yuan in market value vanished within 48 hours.

The crisis came into sharp focus on the evening of September 10 when Northeast Securities issued a risk warning that thrust the NEEQ-listed company into the center of market turmoil. The lead sponsor reported that despite attempts via WeChat groups, phone calls, emails, and even on-site visits to the company's office, it could not establish contact with actual controllers Lin Mingjie and Gao Xiaosong. Other directors, supervisors, and staff present at the office also said they could not reach the pair, and the reasons remain unclear.

Meanwhile, reports emerged of unpaid wages at Qianye Jewelry. Some of its products on e-commerce platforms have been removed, while certain physical stores have posted "closing down sale" advertisements, with regular inlaid jewelry items discounted from 3.5折. Searches for "Qianye Jewelry" on Taobao and JD.com show some items remain available for purchase.

Interestingly, the company's 2026 semi-annual report shows revenue of 213 million yuan, down 26.07% year-on-year, with net profit of 14.4791 million yuan, a slight decline of 1.88%. In other words, although performance has weakened, the business was still profitable. So why the sudden collapse?

The Warning Signs Were There

The abnormalities at Qianye Jewelry did not surface overnight. Before Northeast Securities issued its announcement, rumors of "the boss fleeing and unpaid wages" had already circulated persistently on social platforms. A former senior jewelry design manager claimed that during their employment from May to August 2026, only the May salary was received, with all other months unpaid. Another former employee stated the company only released May wages in mid-July, failing to honor the other three months, and noted that "most employees collectively went to labor arbitration yesterday and today."

According to media reports, approximately 80 current or former employees have suffered wage arrears, with some owed salaries for as long as eight months to a year and a half. Multiple employees told reporters that the social media account of boss Lin Mingjie showed an IP address in Thailand, leading them to speculate he had "fled to Thailand," though no conclusive evidence has emerged. Some media outlets that visited Beijing stores found the Kaide MALL Wangjing location empty, with mall staff saying the store had closed half a month earlier.

Governance Fracture at the Core

The breakdown in governance has proven more damaging. Lin Mingjie simultaneously holds the positions of chairman, president, and board secretary, while his wife Gao Xiaosong serves as director and vice president. The board consists of only three members, two of whom are now unreachable, rendering board meetings impossible and preventing the company from fulfilling its information disclosure obligations. Northeast Securities explicitly warned that these issues could affect the company's ability to continue operations and may trigger forced delisting.

A Tale of Rise and Fall

Qianye Jewelry's story began in 2001. Lin Mingjie, born in 1975, graduated from China University of Geosciences with a jewelry specialization. In March of that year, he co-founded Beijing Qianye Century Jewelry Co., Ltd. with his wife Gao Xiaosong, with registered capital of 500,000 yuan. Gao contributed 400,000 yuan and served as legal representative. The company was engaged in the research, design, and sale of gold, diamond, and other inlaid jewelry, operating under the "KEER Qianye" and "DADA" brands.

2015 marked the high point. The company successfully listed on the NEEQ, generating revenue exceeding 1.1 billion yuan, with net profit surpassing 50 million yuan and peak market value near 2.7 billion yuan. The brand appeared at New York Fashion Week for five consecutive sessions, signed Hollywood actress Anne Hathaway as its spokesperson, and revamped store imagery under a "spring garden" theme in an attempt to build differentiated brand recognition in the accessible luxury jewelry segment. By the end of 2015, Qianye Jewelry operated over 200 retail stores across more than 60 first- and second-tier cities.

In 2017, the company hit its historical peak with revenue of 1.357 billion yuan, up 17.65% year-on-year, and net profit attributable to shareholders of 94.2796 million yuan, up 60.70%. But the following year marked the start of a downward trajectory. In 2021, performance recovered strongly with revenue and net profit both growing over 30% year-on-year, though net profit fell back to losses in 2022. While results remained unstable in subsequent years, profitability was maintained.

Financial Pressures Intensify

Short-term debt obligations paint a grim picture. As of the first half of 2026, Qianye Jewelry held only 933,700 yuan in cash and equivalents, against short-term borrowings of 133 million yuan and non-current liabilities due within one year of 4.2837 million yuan. Clearly, cash is nowhere near sufficient to cover short-term debt, leaving the capital chain at constant risk of rupture.

Inventory turnover efficiency has also deteriorated persistently. In the 2024 interim report, turnover stood at 840.34 days; by the 2025 interim period, it had risen to 1,102.94 days; and in the 2026 interim report, it reached 1,491.30 days. This means inventory takes increasingly longer to sell, tying up capital in unsold goods and further weakening liquidity.

Governance structure also harbors risk signals. As of August 27, shares with restricted rights held by Lin Mingjie accounted for 15.88% of total share capital, exceeding half of his personal holdings. This situation not only tarnishes the company's image but could also trigger a change in the controlling shareholder and actual controller.

What Lies Ahead

From the above, it is clear that Qianye Jewelry not only lacks cash reserves and struggles to generate profits, but also faces towering debt—a situation that has reached an extremely perilous state. Most investors are now likely asking what the future holds for the company. As of September 13, no public information has emerged regarding the actual controller's subsequent steps.

The paths available to the company are all fraught with challenges. The most immediate threat comes from NEEQ regulatory rules. According to the disclosure rules for listed companies on the National Equities Exchange and Quotations, a listed company must promptly disclose major risk situations including the chairman or manager being unable to perform duties, or the controlling shareholder and actual controller becoming unreachable. Qianye Jewelry currently cannot fulfill this obligation, and Northeast Securities has already flagged the possibility of forced delisting. If the board cannot convene and information disclosure remains suspended, delisting becomes nearly certain.

Whether Qianye Jewelry's assets can cover its debts remains an open question. With the actual controller missing and corporate credibility shattered, even attempting to sell inventory to settle debts could face buyer demands for steep discounts and prolonged transaction timelines.

The situation for franchisees is even more complex. After the brand's credibility collapse, would consumers still walk into a store bearing the "Qianye Jewelry" sign to purchase jewelry? Brand value depends heavily on trust—when the founder is rumored to have fled, e-commerce flagship stores have cleared their merchandise, and the number of physical stores has sharply declined, how much brand premium remains?

A Broader Industry Reflection

Viewed from a wider lens, the Qianye Jewelry case raises fundamental questions about the jewelry retail industry. A company can show accounting profits and hold substantial gold assets, yet still grind to a halt when cash runs dry. Gold itself has monetary properties, but a jewelry company's gold inventory is not equivalent to cash—it is processed into products, displayed on shelves, and recorded on balance sheets, but cannot directly pay wages or service bank loans. When a jewelry company ties 96% of its assets up in inventory, relies on low-margin e-commerce channels for most sales, and concentrates core management functions in one individual, its risk resilience becomes extremely fragile.

The final outcome for Qianye Jewelry may hinge on two key variables: whether Lin Mingjie and Gao Xiaosong are willing to return and address company affairs, or whether other management can step in to drive debt restructuring and asset disposal; and whether regulators and courts can intervene in a timely manner to protect the legitimate rights of employees, suppliers, and consumers through bankruptcy reorganization or liquidation proceedings. Here's hoping for the best.