Annual loss reaches 300,000! Lechuang shares cancels holding subsidiary

Recently, Lechuang Holdings issued an announcement stating that it has completed the deregistration of its holding subsidiary Suzhou Lechuang Intelligent Furniture Co., Ltd. When the editor checked the company on the relevant website, it was already displayed as deregistration.

The subsidiary with annual loss of over 300,000 yuan was cancelled by Lechuang Holdings

Suzhou Lechuang Intelligent Furniture Co., Ltd. (hereinafter referred to as "Suzhou Lechuang Intelligent Furniture") was established in 2019 and is controlled by Lechuang Holdings with a 51% stake. It is mainly responsible for the research and development and sales of smart office furniture, home fitness equipment, electronic products and related accessories.

It is a pity that a company was deregistered two years after its establishment. If we trace it back to the source, the abandonment of a company is closely related to its profits.

Relevant data shows that the revenue of Suzhou Lejia Smart Furniture in 2019 and 2020 (January-September) was 0 yuan and 28,700 yuan respectively . This revenue is somewhat disappointing. After all, the investment of various costs and labor costs added up are unknown how many times higher than this revenue.

Even more dismal than the dismal revenue data is the net profit. In 2019 and 2020 (January-September), Suzhou Lechuang Intelligent Furniture's net profit was -127.50 yuan and -305,300 yuan respectively . It is no wonder that Lechuang had to stop losses in time and chose to cancel the company.

A Guangzhou company that suffered losses of more than 300,000 yuan for two consecutive years was also deregistered

As a company established in 2019, Lechuang Intelligent Furniture (Guangzhou) Co., Ltd., which mainly engages in office equipment wholesale, furniture design, and home health care appliance design, will also be deregistered by Lechuang Holdings. This news was already revealed in the relevant announcement released by Lechuang Holdings at the beginning of this year.

Relevant data shows that the revenue of Lejia Smart Furniture (Guangzhou) in 2019 and 2020 (January-September) was 1.6609 million yuan and 1.6427 million yuan respectively . Looking at the revenue, it seems that there is no big problem.

However, the problem is that its net profit in 2019 and 2020 (January-September) was a major accident scene, at -338,400 yuan and -370,700 yuan respectively . After two years of establishment, the annual loss was as high as more than 300,000 yuan, so it is not a pity to be cancelled.

However, when searching for Lejia Intelligent Furniture (Guangzhou) Co., Ltd. on the relevant website , it still shows that it is in operation. It may be that the company's cancellation has not been completed.

As for the deregistration of the company, Lechuang Holdings said that it was due to the company's development strategy and planning considerations, and timely stop loss to achieve better performance. In the future, Lechuang Holdings will not stop its layout in the smart furniture industry, and will continue to try and make breakthroughs.

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