Shanghai Sanmao Enterprise (Group) Co., Ltd.
Climate Impact & Sustainability Data (2014)
Reporting Period: 2014
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- The "Meisuo Cashmere" case concerning a supplier in early 2013 led to retrospective adjustments of 2012 annual data, full provision of bad debt losses and expected liabilities, resulting in two consecutive years of losses and inclusion in the SSE delisting risk warning plate.
- The company was filed by the Securities Regulatory Bureau for inspection; the CPA accounting firm issued an "unqualified audit report with emphasis paragraph" for the 2013 annual report; CITIC Bank sued the Company claiming the Company bearing joint responsibilities.
- Shrinking business volume leading to decreased operating revenue, operating cost, and selling expenses.
- Deteriorating foreign trade business environment.
Mitigation Strategies
- Transferred the 100% stake of Sanmao Online Shopping Company through public bidding to ensure profitability and raise funds.
- Seized opportunities of "North Bund" development to maximize asset value addition.
- Finished land transfer, liquidation, and cancellation of Shanghai Xiefeng Combing Factory, yielding investment income.
- Terminated risky businesses and recovered funds from Asahi branch.
- Responded to CITIC Bank lawsuit, resulting in the dismissal of the bank's claim for joint guaranty responsibilities.
- Reorganized assets and divested non-performing assets.
- Provided financial and resource support to subsidiaries.
- Strengthened budget evaluation, amended the incentive system, and improved internal audit.
- Implemented risk control management system in foreign trade business, combing or eliminating high-risk businesses.