Article produced by Radar Finance and edited by Li Wanmin | Deep Sea

On September 21st and September 22nd, for two consecutive days, the stock price of Wole Home Furnishing collapsed. After falling to the limit, the news that Wolejia was hit by a "pig-killing plate" spread like wildfire. Not long before this incident occurred, Woleju shareholders had just carried out a wave of concentrated reductions in holdings. However, Wole Home Furnishing issued an announcement denying that the company’s directors, supervisors, senior executives and actual controllers were involved in the incident.

After the article about the "Pig Killing Plate" incident was published, a former dealer of Wole Home came to Radar Finance and told about the "past grudges" between himself and Wole Home. Some of these dealers have been in the home furnishing business with Wang Chunjun, the owner of Wole Home Furnishing, for nearly 20 years, and have spent their prime years on this business; some have only joined for a short period of time, but have already spent all their wealth... Among them, a dealer in Wuxi said that he invested more than 6 million in selling his house to open a store, but was forced to transfer it to Wole Home Furnishing at a low price.

In this regard, Wole Home Securities Department told Radar Finance, "The company's relevant litigation matters are being actively handled. The company does not respond one by one to information that deviates from the facts or is unverified, but it does not respond to any information that deviates from the facts or is unverified. The company will retain the right of legal recourse for any behavior that seriously affects the company. "

After twenty years of hard work, it was promoted to the "Shanghai Stock Exchange" by 800 dealers

As of now, there are *** A-shares. There are 9 listed companies of customized home furnishing companies, and Wole Home Furnishing is one of them. The company's earliest history can be traced back to the 1990s. At that time, there was a nationwide investment promotion boom. By 1998, China ranked second in the world in terms of the scale of foreign investment. It was in this context that the owners of Wole Home Furnishing, Mr. and Mrs. Wang Chunjun, started their entrepreneurial career.

After graduating from university, Wang Chunjun first worked in marketing in the field of consumer electronics for more than three years. In 1988, he switched from trading in consumer electronics to the building materials industry. At that time, Wang Chunjun was the general representative of Paco Flooring in Jiangsu, Shanghai, Zhejiang, Henan and Anhui. Paco Flooring was founded in 1997 and is the earliest foreign-owned laminate flooring enterprise in China. Since its establishment, Paco Flooring has invested heavily in introducing advanced production equipment from Germany, and has used complete and rigorous European quality standards as internal control indicators. Later, Wang Chunjun and his wife founded Wole Home Furnishing, which also had the selling point of "European design, German quality".

In June 1999, Nanjing Yijia Furniture Manufacturing Co., Ltd. was established. This company is half-owned by Wang Chunjun’s wife, Miao Yanti, and Baihui Wood Industry. Among them, Baihui Wood Industry is owned by Wang Chunjun and his compatriots. Brother Zhuang Chunhu holds 91 and 91 shares respectively. It is worth mentioning that Miao Yanti is a Chinese-American, and her foreign name NINA YANTI MIAO is more prominent in relevant media reports.

This new company, with a registered capital of US$200,000, had the same foreign investment status as Wang Chunjun’s former employer. It was called "Sino-US Joint Venture Nanjing Yijia Furniture Co., Ltd." by the dealers at the time, and was It is regarded as the predecessor of Wulejia. From this, Wang Chunjun and his foreign businessman wife started their own furniture business with their relatives and friends.

Chai Huasong, a former dealer of Wile Home Furnishing, recalled that as early as 1999, he signed an agency agreement with the Sino-US joint venture Nanjing Yijia Furniture Co., Ltd. At that time, the contract was signed as the exclusive agent in Xuzhou. Later in 2003, the company's brand was changed to Baijia Kitchen Cabinets. In the information displayed by Tianyancha, Yijia Furniture still has traces of the "Baijia" brand trademark.

The struggles of these early dealers in the first half of their lives are firmly tied to our Lejia brand. Chai Huasong was born in December 1970 and was less than 30 years old when he became a dealer of the company; another dealer Ni Junfeng, born in October 1971, became a dealer of "Sino-US Joint Venture Nanjing Yijia Furniture Co., Ltd." Shang Shi was also less than 30 years old.

According to Chai Huasong and Ni Junfeng, the so-called "Sino-US joint venture Nanjing Yijia Furniture Co., Ltd." is the predecessor of Wole Home Furnishing, but many dealers who joined later have not even heard of it. passed this name. In the prospectus of Wole Home, there is no mention of "Sino-US Joint Venture Nanjing Yijia Furniture Co., Ltd.", but the predecessor of Wole Home is defined as Wole Manufacturing, which was established on June 19, 2006.

The "Sino-US Joint Venture Nanjing Yijia Furniture Co., Ltd." in the memories of these old dealers has long been cancelled, and there is no mention of it in the prospectus.

Taking advantage of the east wind of the times, Woleju, driven by dealers, is running hard and growing day by day.

On December 21, 2015, Wole Home submitted a prospectus (draft application) to the Shanghai Stock Exchange. The prospectus shows that the company currently adopts a sales model with distribution as the mainstay and bulk customers as the supplement. Dealers are distributed in nearly 650 cities in 31 provinces in China. The company is divided into 7 regions based on sales area.

Judging from the number of dealers, the company's dealers are generally on the rise. From 2012 to the first half of 2015, the number of dealers were 531, 655, 791 and 729 respectively. The vast majority of the company's performance is contributed by dealers. Data show that from January to June 2012, the company's revenue through the distribution model was 250.4629 million yuan, 368.9840 million yuan, 436.7064 million yuan and 155.8862 million yuan respectively, accounting for 89.86% of the company's main business revenue respectively. 78.90, 83.92 and 83.25.

On April 20, 2017, Wole Home updated its prospectus. The number of dealers became 784 in 2014, rose to 807 in 2015, and dropped to 706 in 2016.

From 2015 to 2016, the revenue achieved by Wole Home through the distribution model was 501 million yuan and 593 million yuan respectively, accounting for 86.58% and 87.78% of the company's main business income respectively.

"Shocked by the vassal reduction", some dealers said they were forced to transfer at a low price

In the end, Wole Home successfully passed the meeting and officially landed on the Shanghai Stock Exchange on June 16, 2017.

When it was listed, the souvenir presented to the Shanghai Stock Exchange by Miao Yanti, the proprietress of Wole Home Furnishing, was the United Nations intangible cultural heritage with 1,600 years of historical and cultural origins - Nanjing's characteristic cloud brocade "Six Horses", which means that enterprises are like galloping horses. With great success, the Shanghai Stock Exchange gave away a market opening gong.

How can we achieve great success? At that time, the customized furniture industry included four types: distribution model, direct sales model, bulk customer model and O2O model. In the past development, the distribution model has always occupied the mainstream position in the industry. Before Wolejia went public, the proportion of revenue contributed by distribution channels has always occupied more than 80%.

In the prospectus, Wole Home compared the listed companies in the same industry. The gross profit margin was close to that of Oppein Group, but lower than other comparable companies. Wile Home Furnishing believes that the gross profit margin of sales through direct sales channels is relatively high, followed by the gross profit margins of dealers, while the gross profit margins of sales through bulk customer channels are usually lower.

In order to increase gross profit margin, Wolejia began to promote "cutting down the vassal" and engaging in direct sales.

In fact, in the prospectus, Wolejia immediately reminded dealer risks.

“During the reporting period, the company’s sales model was dominated by the distribution model...Although the company established a good and stable cooperative relationship with dealers during the reporting period, if the dealers do not comply with the company’s management system or Failure to achieve the agreed performance targets may have an adverse impact on the company's future performance. ”

In the process of direct operation of the company, the performance requirements for dealers are becoming more and more stringent.

A group of dealers failed to reach sales targets and lost their distribution rights.

Ni Junfeng began to represent the products of Wang Chunjun and his wife's company in 2000 and has been a distributor for 18 years. On June 30, 2018, Ni Junfeng received a notice that the distribution rights were cancelled. The reason was that the company's sales targets were not met. He called the head of the headquarters and asked, "The kitchen cabinet sent me a notice saying that I was cancelled, and no one cared about it. No one asked me. Just sent me a notice and everything is fine?" The leader said, "You have done well." How much? What can I say if it's not good? "

Chai Huasong joined earlier and started working as an agent for "Sino-US Joint Venture Nanjing Yijia Furniture Co., Ltd." for 18 consecutive years. , by February 7, 2017, I received a "Letter of Termination of Cooperation" and my agency rights were gone.

Many dealers are dissatisfied with the cancellation of their agency rights.

On July 8, 2019, at the Guangzhou Construction Expo, a group of people wearing T-shirts with the words "WoLe Home Harmed Dealers" gathered around the WoLe Home booth to ask for an explanation. The reason why these people "asked for explanation" was roughly the same - they could not meet Wole Home's requirements for opening new stores and adding tasks, so their agency rights were revoked, and the two parties had a dispute over the issue of compensation for the aftermath. But one of them is a bit special, and this person is Dang Yongqiang.

Most others received "cancellation notices" and had their distribution rights revoked. Dang Yongqiang did not receive a "cancellation notice", but signed a transfer agreement with Leju and transferred his store to the company.

Dang Guoqiang told Radar Finance that he opened three stores in Wuxi and invested all his wealth, including selling his house. As a result, only 170,000 yuan in cash was received in this transfer.

In the building materials and home furnishing industry in Wuxi, Dang Yongqiang can be regarded as a "senior practitioner". According to his own account, he has been working hard in this city and industry since 2007, and has accumulated some connections. At the beginning of 2015, someone from Wole Home Investment Department came to visit. After several discussions, Dang Yongqiang signed the agency right for Wole Home in the Wuxi market.

In April 2016, Dang Yongqiang’s first store after acting as an agent for Wole Home Furnishing, the Huaxia Home Furnishing Port Store, opened. This is an asset-heavy business that requires a lot of investment in the early stage. Dang Yongqiang said that he invested more than 1.6 million yuan in this store alone.

In 2016, Dang Yongqiang became the TOP3 among the top ten new dealers. After that, Dang Yongqiang also received the "2017 Top 100 Dealers" trophy from Wole Home Furnishing.

Tianyancha data shows that in 2017, Dang Yongqiang registered and established Wuxi Wole Home Building Materials Co., Ltd. with a registered capital of 500,000.

Dang Yongqiang said that despite this, after the listing of Wole Home Furnishing, it has higher requirements for dealers, and one store is no longer enough to meet the company's sales task requirements for Wuxi. Headquarters leaders came to talk. If Dang Yongqiang wants to continue, he must continue to open stores to improve sales; otherwise, he will lose his distribution rights.

"More than 1.6 million yuan has been invested in the first store, but it has not been fully recovered. What should I do?" Dang Yongqiang decided to sell the house.

His own house was sold, his parents' house was sold, and Dang Yong used all his wealth to play big games. In May and August 2018, Dang Yongqiang opened two more stores in Wuxi Yuexing and Macalline. Dang Yongqiang said that he has invested more than 6 million at this time.

Information provided by Dang Yongqiang shows that the relevant person in charge of Wole Home Furnishing Headquarters believes that even if Dang Yongqiang opens a new store, he will still be unable to complete the tasks given by the company.

Dang Yongqiang said that he had no right to speak. In desperation, he signed a transfer contract for the Wuxi market with Wole Home Furnishing on November 14, 2018. All three stores, personnel, orders, etc. The total transfer amount is 2.41 million yuan. After deducting various expenses, Wolejia paid 170,000 yuan to Dang Yongqiang, leaving a balance of 450,000 yuan, and it was agreed to complete the payment before April 2019.

But Dang Yongqiang did not get the final payment.

In an interview with China Business Daily, Woleju stated that the company refused to pay the balance because it was stipulated in the contract that the balance must be deducted from the cost and expenses of the above order, plus the customer losses caused by Dang Yongqiang’s breach of contract. The total cost of complaints has exceeded 450,000 yuan. Dang Yongqiang said that the bills provided by Wole Home were untrue and that the customer complaints were caused by Wole Home's failure to fulfill the order agreement and should not be blamed on himself.

In July 2019, after the "explanation" at the Guangzhou Construction Expo, Nanjing Wole Home Furnishing Sales Management Co., Ltd. took Dang Yongqiang to court and demanded a public apology. Compensation for losses is 500,000 yuan. A year later, Wolejia withdrew the lawsuit.

In April 2020, Dang Yongqiang sued Nanjing Wole Home Sales Management Co., Ltd. and Nanjing Wole Home Co., Ltd. to court for not paying the balance.

On September 17 this year, Dang Guoqiang changed the lawsuit request and required Wole Home to pay the transfer fee of 290,000 yuan, and use this as the base to pay liquidated damages and return the deposit of 60,000 yuan.

Currently, the case is still under review.