"China's No. 1 Mattress Stock" Xilinmen: Has applied for case investigation with public security authorities

(Source: People’s Voice and People’s Livelihood)

On March 27, “China’s First Mattress Stock” Xilinmen Health Sleep Technology Co., Ltd. (Xilinmen, 603008.SH) announced that its subsidiary’s account funds had been illegally transferred and that the company had implemented protective freezing on some bank accounts.

The announcement stated that recently, Xilinmen discovered that the bank account funds of its subsidiary, Xitu Technology Co., Ltd., had been illegally transferred, with a total transfer amount of 100 million yuan. After company verification, it was found that relevant personnel were suspected of illegally misappropriating company funds by abusing their positions.

Xilinmen pointed out in the announcement that to further prevent financial security risks and protect the funds of the listed company, the company applied to the public security authorities for a case investigation on March 26, 2026, and implemented protective freezing on the relevant bank accounts that may be involved.

As of the announcement date, the amount of illegally transferred funds from Xilinmen’s subsidiary bank accounts was 100 million yuan, and the amount of protective judicial freezing was approximately 900 million yuan, with the total exceeding 1 billion yuan, accounting for 26.54% of the company’s most recent audited net assets and 42.69% of the company’s most recent audited monetary funds.

Xilinmen stated in the announcement that the freezing of the above bank accounts was a proactive protective freezing conducted by the company to safeguard fund security, and there was no situation of being frozen by a third party. This matter may cause certain impacts on the normal use of funds of the subsidiary in the short term, but considering the company’s cash flow situation, it will not have a significant adverse impact on the company’s overall production and business activities in the short term. The company is currently fully cooperating with the public security authorities to investigate and verify the relevant matters, and under the premise of ensuring the safety of account funds, will promote the unfreezing of frozen accounts and work hard to recover the illegally transferred funds, striving to eliminate the relevant adverse effects as soon as possible and effectively safeguard the legitimate rights and interests of the company and all shareholders.

Xilinmen stated that the company has quickly initiated a self-examination of fund security, strengthening the fund security control system. After ensuring the safety of account funds, it will promptly apply to the public security authorities for account unfreezing matters to restore the normal use of frozen accounts and reduce adverse impacts on the company’s normal operation and business. At the same time, the company has established communication channels with relevant parties and is actively negotiating the return of the transferred funds, and will closely cooperate with the public security authorities in handling the investigation of the case to recover the transferred funds as soon as possible, eliminating the unsafe factors regarding the company’s account funds and ensuring the safety of the company’s assets. In addition, the company will conduct personnel accountability and internal control rectification, strengthen the learning of laws and regulations by all directors, senior management, and key personnel, enhance operational compliance awareness, effectively improve corporate governance and internal control management capabilities, and strengthen the construction and implementation of internal control systems.

The announcement indicated that as of now, there remains a certain degree of uncertainty regarding the recovery of the illegally transferred funds; if the funds cannot be recovered, it may adversely affect the company’s net profit.

According to Xilinmen’s official website, the company was founded in 1984 and is the first listed company in the Chinese mattress industry. It is currently defined as a health sleep technology enterprise driven by technological innovation, with seven major production bases globally and over 5,200 stores.

Company performance data shows that in the first three quarters of 2025, Xilinmen achieved operating revenue of 6.196 billion yuan, a year-on-year increase of 3.68%; the net profit attributable to shareholders of the listed company was 399 million yuan, a year-on-year increase of 6.45%. The revenue for the third quarter alone was 2.176 billion yuan, a year-on-year increase of 7.78%; the net profit was approximately 133 million yuan.

According to Dazhihui VIP, as of the close on March 27, Xilinmen was priced at 16.3 yuan/share, down 2.1%.