1 billion yuan stolen, 900 million yuan frozen—China's top-listed mattress company reveals an insider threat

Reporter丨Zhu Zhiqi

Editor丨Jiang Peixia

On the evening of March 27, Lin’s Bedding (603008) announced that recently the company discovered that funds from the bank accounts of its wholly controlled subsidiary Xitu Technology Co., Ltd. were unlawfully transferred. The total amount transferred was RMB 100 million. The announcement disclosed that, after the company’s internal review, relevant individuals were suspected of illegally misappropriating company funds by taking advantage of their positions.

Lin’s Bedding stated that it had, on March 26, 2026, applied to public security authorities for filing of a case for investigation, and would place the potentially involved bank accounts under protective freeze. The amount of protective judicial freeze is approximately RMB 900 million, the amount of unlawfully transferred funds is RMB 100 million; together, they exceed RMB 1.0 billion, accounting for 26.54% of the company’s net assets in its most recent audited financial statements, and 42.69% of the company’s monetary funds in its most recent audited financial statements. This also means that the funds are widely affected, with a large proportion and scale, directly influencing the company’s underlying business fundamentals.

The announcement shows that, as of now, the recovery of the unlawfully transferred funds still involves a certain degree of uncertainty. If the funds cannot be recovered, it may adversely affect the company’s net profit.

This so-called “insider fraud” case not only exposed a major loophole in the company’s internal management, but immediately attracted the rapid intervention of regulators. That same evening, the Shanghai Stock Exchange promptly issued a regulatory work letter regarding Lin’s Bedding’s account fund transfer and freeze-related matters. The relevant parties include the listed company, directors, senior management, controlling shareholders, and the actual controllers.

Xitu Technology, the implicated company in this incident, was once a strategic piece that Lin’s Bedding had high hopes for. According to publicly available information from Tianyancha, Xitu Technology was officially established in January 2021, with registered capital of RMB 50 million. The legal representative is Zhou Yaying, and the actual controller is Chen Ayu, the founder of Lin’s Bedding. At the time of its establishment, Lin’s Bedding clearly assigned Xitu Technology an extremely important strategic mission: to be responsible for the development and expansion of hotel channel business.

According to Nandu Bay Finance and Media, on March 28, a reporter contacted Zhou Yaying, the legal representative of Xitu Technology. She denied the matter and said she was unaware of it, stating that she was simply a “registered legal representative.”

Public records show that Lin’s Bedding was founded in 1996. Its business includes the design, research and development, production, and sales of high-quality deep-sleep products centered on mattresses. Its main products include mattresses, beds, sofas, and other supporting bedroom furniture, which are widely used in home, hotel, apartment, and other diverse commercial scenarios.

Lin’s Bedding was listed on the Shanghai Stock Exchange in 2012 and is known as the “No. 1 Mattress Stock in China.” The third-quarter report of 2025 shows that Lin’s Bedding’s operating revenue remained slightly increasing, but profits declined year over year. In the third quarter, the total profit was RMB 140 million, down 8.50% year over year; net profit attributable to shareholders of the listed company was RMB 133 million, down 6.10% year over year; and net profit after deducting non-recurring gains and losses was RMB 134 million, down 6.16% year over year.

Source of image: Lin’s Bedding financial report

As of the close on March 27, Lin’s Bedding traded at RMB 16.3 per share, down 2.1%. Since the beginning of this year, the stock price has cumulatively fallen by more than 20%.

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