The title of "the first domestic sanitary ware company listed in Germany" that once made Zhongyu Sanitary Ware proud has made it face disaster. On May 22, the share price of Zhongyu Sanitary Ware plummeted from more than 17 euros to 0.33 euros, almost zero, and the future prospects suddenly became bleak. A reporter from Beijing Business Daily found that Zhongyu Sanitary Ware has always been in a non-mainstream position in the Beijing market. Its products have been on the quality black list four times in five years. The collapse of its stock has made it worse, and it has been embattled on all sides. The experience of Zhongyu Sanitary Ware has sounded the alarm for those home furnishing companies that are desperately trying to squeeze into the capital market: going public is not a guaranteed profit-making business, and they must beware of crises in the capital market.

Event: Zhongyu Sanitary Ware’s stock plummeted or went bankrupt

“Zhongyu Sanitary Ware’s stock price dropped to zero in a week, or it filed for bankruptcy.” On May 22, this shocking news went viral on the Internet The news spread, causing some people who were planning to go public and calculating stock profits to smile at the corners of their mouths.

According to Phoenix Finance, Joyou AG’s stock price reached a new high of 17.46 euros on April 21, then plummeted on April 27, and was as low as 0.33 euros on May 22, close to zero. Thomson Reuters reported on May 22 that due to insolvency, the Zhongyu Management Committee announced that it had submitted a dissolution application to the local court in Hamburg, Germany. The company's supervisory committee has removed Cai Jianshe and Cai Jilin and his son from the company's management committee.

Japan’s LIXIL, the largest shareholder with 72.3% stake in Zhongyu Sanitary Ware, is suspected to be behind this incident. On May 23, an online manuscript titled "Suspected Full Text of Zhongyu Statement" revealed the shady story of the "cliff jump" in Zhongyu Bathroom's stock price: "At the end of 2013, after Japan's LIXIL acquired Germany's Grohe at a high price, it began a series of Capital operations and the production of false statements were used to raise the stock price for cash out, resulting in a downturn in Zhongyu's stock price; in the entire merger and acquisition case between Japan's LIXIL and Germany's Grohe, Zhongyu Group did not receive substantial benefits, but was instead Japan's Lixil indirectly controlled Zhongyu, and the Tsai Group gradually lost control of Zhongyu because it could not afford the high debt. On May 21, Zhongyu lost control because of its debt. Gao, filed for bankruptcy proceedings with the German court where the listed company is located. On May 23, Zhongyu officially stated that German Zhongyu needed to enter the reorganization process.”

Zhongyu Sanitary Ware was officially announced on May 23. An official statement issued on WeChat and Sina's official Weibo denied the "bankruptcy" rumors: "The original announcement uses insolvency, which means that German Zhongyu is temporarily unable to repay existing debts and is negotiating with creditors, rather than bankruptcy. Bankruptcy), so the current news about Zhongyu Sanitary Ware's bankruptcy, dissolution or other information that is contrary to this statement are just rumors and misunderstandings." He also promised that "all management personnel of the company perform their duties and stick to the front line to ensure normal production and operations."

Survey: Non-mainstream brands repeatedly appear on the quality black list

“The first domestic sanitary ware company listed in Germany” has always been a title that Zhongyu Sanitary Ware will inevitably throw out in various publicity. , bright and bright. However, a reporter from Beijing Business Daily found that Zhongyu Sanitary Ware is not mainstream in the Beijing market. Although Zhongyu Sanitary Ware has more than 20 terminal stores in Beijing, there are few stores in mainstream channels, and most of them are concentrated in suburbs or unknown small stores. Industry insiders said that Zhongyu Bathroom is not an ideal choice for tasteful consumer groups.

Zhongyu Sanitary Ware has repeatedly exposed quality problems, and it is far from its reputation as a German listed company. According to incomplete statistics from a Beijing Business Daily reporter, in more than five years from 2009 to 2014, Zhongyu Sanitary Ware became the protagonist of the quality black list announced by various local quality supervision departments because of unqualified pipe thread accuracy, flow rate and other basic indicators.

On January 14, 2009, in the product quality inspection announcement issued by the Chongqing Administration for Industry and Commerce, the nominal trademark is Zhongyu, the manufacturer is Zhongyu Building Materials Group Co., Ltd., and the specification is DSM15 ( JY00132)'s ceramic sealing faucet (basin faucet) was on the quality black list due to unsatisfactory thread accuracy and flow rate.

On December 9, 2010, in the "2010 Wenzhou City Building Materials Quality Monitoring Announcement" issued by the Wenzhou Administration for Industry and Commerce, a model whose nominal production unit is Zhongyu Building Materials Group Co., Ltd., The ceramic sheet sealed single-handle single-control ordinary faucet with model number JY06325, specification DN15, and trademark Zhongyu Sanitary Ware appeared on the quality blacklist due to failure in the acid salt spray test and pipe thread accuracy.

On August 5, 2013, in the "Announcement of Quality Supervision and Testing Results of Faucet Products in the Second Quarter of 2013" issued by the Wuhan Administration for Industry and Commerce, one manufacturer is Zhongyu Building Materials Group Co., Ltd. , the faucet with the nominal trademark Zhongyu Sanitary Ware and the specification JY00141 was judged to be a substandard product because the thread accuracy did not meet the standard.

On April 15, 2014, the "2013 Consumption Tips for Faucet Products in the Circulation Area" released by the Guangzhou Administration for Industry and Commerce showed that a single-hole single-handle face brand is JoYou (Zhongyu). The basin faucet and a pure faucet (ceramic sheet sealed faucet) were judged to be overall unqualified by supervision. Both products are produced by Zhongyu Building Materials Group Co., Ltd. and sold by Guangzhou Zengcheng Youming Hardware Business Department. Except for the accuracy of pipe threads In addition to being unqualified, the latter also has another unqualified indicator - traffic.

“Who dares to buy if you are old and unqualified?” A Beijing Business Daily reporter heard a consumer named Zhang complain during the investigation: “So what if it is launched in Germany? The product is for use. I’m really worried about quality problems.”

Warning: Home furnishing companies must be cautious when going public

Although Zhongyu Sanitary Ware denied the rumors of “bankruptcy” in the official statement, Cai Jianshe and Cai Jilin. The father and son even threatened to take back control of Zhongyu Sanitary Ware and revive the Chinese market. However, industry insiders are not optimistic, especially since the sales of Tao Wei products have been sluggish recently, and it is difficult for Zhongyu Sanitary Ware, which has repeatedly been on the quality blacklist, to reverse its decline. At the same time, the shocking experience of the sudden collapse of Zhongyu Sanitary Ware's stock also serves as a warning to home furnishing companies that are rushing to the capital market: going public is risky and they must be cautious when entering the market.

Qumei Furniture was successfully listed and raised N daily limit, further stimulating the enthusiasm of home furnishing companies for listing. In addition to already standing on the threshold of the China Securities Regulatory Commission