A prominent retail jeweler has come under scrutiny following reports of unpaid wages and missing senior leadership, with its regulatory sponsor now unable to contact the company's ultimate controlling figure.
Several former employees of the jewelry chain have publicly stated that the company failed to disburse salaries for multiple months. One ex-staffer detailed being employed from May to August, during which time only the May pay was eventually received in mid-July, leaving three months of wages outstanding. This individual noted that the issue was not isolated, citing colleagues who had to wait until March to receive salaries owed the previous October.
Management had reportedly assured staff that wages for June would be settled by September 15th, with some employees even told that payments would arrive by September 10th. However, as of the latest reports, none of the promised payments have materialized, prompting a large number of employees to file collective labor arbitration claims. The situation escalated on September 7th when current staff informed a former employee that the boss had disappeared, with banking officials having also visited the premises. Internal speculation suggests the owner may have fled to Thailand, a claim based on the IP address location of his social media account, though no definitive evidence has been found.
The company, a limited shareholding entity established in 2001, operates primarily in the retail sector with a registered capital of over 110 million RMB. It completed a private placement in 2017, raising 129 million RMB. Its legal representative and chairman, Lin Mingjie, founded the firm in March 2001 and has served in various executive roles since. Attempts to reach the company's registered business phone lines have been unsuccessful.
Further inquiry reveals that the company's official flagship stores on major e-commerce platforms are currently devoid of products for sale. However, direct calls to physical store locations painted a different picture, with staff at one location stating they are operating normally without any wage arrears and expressing surprise at the rumors, attributing them to potential internal management disputes. Another store echoed these sentiments, confirming normal operations and timely salary payments. Despite this, contact numbers reserved for several other stores are reportedly no longer in service.
On the evening of September 10th, the company's sponsor brokerage issued a formal risk warning announcement. The notice stated that it has been impossible to establish contact with the controlling shareholder, chairman, and board secretary, Lin Mingjie, as well as the vice-chairman Gao Xiaosong, through all attempted channels including messaging groups, phone calls, emails, and in-person office visits. Other board members and on-site staff have also confirmed their inability to reach either individual, the reasons for which remain unclear. According to previous financial disclosures, Lin Mingjie and Gao Xiaosong are married.
The announcement elaborated that these risks could significantly impact the company's ability to continue as a going concern and may potentially lead to a forced delisting. With the controlling shareholder unreachable, the board is unable to convene meetings or fulfill information disclosure obligations, representing a major deficiency in corporate governance. The absence of core management could impair normal operational decision-making and threaten long-term viability.
Financial results from August 27th for the first half of the year show total revenue of 213 million RMB, a year-on-year decrease of 26.07%. Net profit attributable to shareholders was 14.48 million RMB, down 1.88% from the previous year, with earnings per share of 0.13 RMB. The company's debt totaled 290 million RMB as of the end of June.