Operational status, debt resolution progress, and rumors about the founder's "disappearance" were among the contentious issues brought to the forefront as "China's first mattress stock" seeks to turn the tide. On May 25, Xilinmen opened lower at 8.7 yuan, subsequently fluctuating downward to close down 5.02% at 8.51 yuan per share, ranking second in losses within the furniture sector, with a market capitalization of 3.134 billion yuan.
Three days prior, Xilinmen held its shareholders' meeting at its headquarters in the Paojiang factory, Yuecheng District, Shaoxing City, Zhejiang Province. Management attempted to reassure investors by releasing information, but the market appeared unconvinced.
From related reports, shareholders raised pointed questions. For instance, Chairman Chen Ayu's absence from the meeting led to associations with previous rumors of his "disappearance." Chen Yicheng, Chen Ayu's son and Vice Chairman and President of Xilinmen, addressed this, stating clearly that the Chairman is currently performing his duties normally without any issues. Regarding speculation that Chen Ayu's divorce involved equity division, Chen Yicheng also indicated it "should not involve this matter," adding that evading debt through such means is currently impossible, and major shareholders must take responsibility, especially during critical times.
At the meeting, Board Secretary Shen Jie denied rumors that Chen Ayu's debt crisis originated from failed investments in the real estate sector. She stated that the major shareholder's debt accumulated over the long term and was not due to a single event or industry-specific issue. She explained that the major shareholder had consistently provided the listed company with over 100 million yuan annually in financial support at rates lower than bank interest, continuously assisting the company. Later, optimistic about the company's development, the major shareholder participated in a private placement around 2015 through equity pledge financing and issued exchangeable corporate bonds. Combined with the equity dispute with Kuka Home, these factors contributed to the accumulation of the major shareholder's debt.
According to her statement, resolving the major shareholder's debt is part of a comprehensive plan, currently being advanced in an orderly manner. Regarding potential changes to the chairmanship, Chen Pingqi, Chen Ayu's daughter and a Director and Deputy Party Committee Secretary of Xilinmen, stated that management changes are extremely serious matters, with the core consideration being whether they benefit the company's sustainable and healthy development. She acknowledged that Chen Ayu had indeed engaged in very inappropriate behavior in the past but is currently actively addressing issues, handling problems, maintaining relationships with all parties, and connecting with important resources, not evading responsibility.
Chen Ayu's debt crisis came to light in March of this year. On the 27th of that month, Xilinmen disclosed an announcement stating that the company recently discovered funds from the bank account of its controlled subsidiary, Xitu Technology Co., Ltd., had been illegally transferred, with cumulative transfers amounting to 100 million yuan. Upon verification, it was found that relevant personnel涉嫌利用职务之便，非法挪用公司资金。 To safeguard funds, Xilinmen applied to public security authorities for case filing and investigation on March 26, 2026, and implemented protective freezing of related bank accounts that may be involved.
Furthermore, Xilinmen stated that "the company has established communication channels with relevant parties and is actively negotiating the return of the transferred funds. It will fully cooperate with public security authorities in the case investigation to recover the transferred funds as soon as possible."
Simultaneously, Xilinmen disclosed a regulatory letter concerning the transfer and freezing of funds in Xilinmen's bank accounts, involving the controlling shareholder and actual controller—Chen Ayu.
Several days later, Xilinmen issued another announcement. Xilinmen, Zhejiang Shunxi Supply Chain, and Zhejiang Yingxi Supply Chain (collectively referred to as the "Plaintiffs") filed a lawsuit against Chen Ayu, Huayi Intelligent Manufacturing, and Huahan Investment (collectively referred to as the "Defendants"), demanding the Defendants jointly compensate the Plaintiffs for fund losses totaling 478 million yuan.
Relevant content indicated that in 2026, the Plaintiffs obtained bank loans for operational needs. The Defendants and their related parties, through a loan rediscount business model involving the Plaintiffs' loans, have occupied 72 million yuan of the Plaintiffs' funds to date. This includes 15 million yuan involving Xilinmen itself and 57 million yuan involving Zhejiang Yingxi Supply Chain.
Additionally, between 2025 and 2026, the Plaintiffs engaged in factoring financing business. For payments the Plaintiffs had already made to suppliers, the Defendants obtained funds totaling 406 million yuan through the factoring financing business model. "For funds that these suppliers have applied for financing from banks and that the Defendants have actually obtained, the Plaintiffs bear the payment obligation, constituting an inevitable loss for the Plaintiffs."
As of the announcement date, Xilinmen had actually borne a payment obligation to the bank of 63.5512 million yuan, while Zhejiang Shunxi Supply Chain paid approximately 54.014 million yuan.
The aforementioned case was accepted at the end of March. Concurrently, due to涉嫌信息披露违法违规， the China Securities Regulatory Commission decided to file a case against Chen Ayu.
As of May 2026, announcements show that the non-operating fund occupancy balance by Xilinmen's controlling shareholder and its related parties is approximately 385 million yuan, and the违规担保余额 is about 470 million yuan. Both amounts exceed 5% of the net assets from the most recent audit, and the company has been placed under other risk警示 (ST).
At a recent performance briefing, investors inquired about the above situation. Xilinmen responded that the company maintains continuous communication with the controlling shareholder and its concerted actors, urging them to resolve the fund occupancy issue as soon as possible through methods such as cash repayment, asset replacement, or stock减持. Reportedly, the controlling shareholder has currently engaged legal and other professional institutions to formulate a specialized rectification plan and is actively advancing rectification work.