Minhua Holdings, a listed home furnishing company known for Zhihuashi sofas, recently "out of the circle" for a senior executive's arbitrary fine, which caused heated discussion. In response to the senior executives involved in the matter's remarks such as "employees are fined when looking in the mirror at work" and "finished them when not turning off the computer after get off work", on June 7, a head of Zhihuashi, a subsidiary of Minhua Holdings, told reporters from Nandu Wan Finance that they have paid attention to the discussions on the Internet, and the company is still investigating the specific situation.
Executives have caused heated discussions due to fines
Company responded to notice hot discussions on the Internet
According to Xiaohongshu user @ what happened inside and outside the factory, "A senior executive named Liu from Minhua Home Furnishing E-commerce Department requires employees not to eat at work stations, force overtime and require clocking in 6 times a day, and resigning on their own if they are unwilling to do so", questioning the relevant behaviors violate the Labor Law.
Pictures According to @大学习
The chat screenshots released by the user show that in May this year, the senior executive surnamed Liu posted a message in the work group that some colleagues "don't work at work", some use the toilet, some use "looking in the mirror, and those with strange reasons", saying, "I found out that those who play games will be fired directly! Those who eat will be fined 2,000, supervisors will be 1,000, and the supervisor will be 500." "Those who are not in the position for nothing, the monthly salary will be reduced by 2,000 more than three times." In addition, Liu was disclosed for additional fines, saying that "there is a fine of 100 if you don't turn off the computer after get off work."
Another chat screenshot showed that Liu said in the WeChat group, "I will make several thousand more money tonight, and the team building funds will be available again", and said that he would "buy books and build a library." The above remarks have sparked heated discussions among netizens.
According to the "Regulations on the 8S Office Environment Management of Internet Brand Centers" provided by employees of the Zhihuashi E-commerce Department, the regulations require that the screen be locked for more than 10 minutes after leaving the work station, and the chair is returned to its seat when leaving. For violations of regulations, the person directly responsible will be punished with an economic penalty of 50 yuan, and the person in charge of the subordinate department will be punished with an economic penalty of 100 yuan. All violation fines will be included in the unified management of the "8S incentive fund".
About the hot discussion on the Internet, a reporter from Nandu Wancai Society contacted Minhua Holdings for verification. On June 7, a relevant person in charge of Zhihua Shiyi, a subsidiary of Minhua Holdings, responded that he had learned about the matter and also noticed the discussion on the Internet. The company is still investigating the specific situation. He will inform him after the investigation results are announced on the afternoon of June 7. As of press time, the person in charge did not disclose the investigation results.
Financial report shows that revenue and profits have dropped both times
Sales revenue of core business sofas has declined
Minhua Holdings was listed in Hong Kong in April 2010. According to the financial report, as of September 30, 2024, Minhua Holdings had a total of 27,000 employees.
On May 15, Minhua Holdings issued a performance announcement for the year ended March 31, 2025. According to the financial report, Minhua Holdings is currently facing performance pressure of both revenue and profit decline. During the reporting period, its revenue reached HK$16.903 billion, a year-on-year decrease of 8.2%; its net profit reached HK$2.063 billion, a year-on-year decrease of 10.4%. Domestic sales revenue fell sharply by 17.2% year-on-year to HK$9.927 billion, and its share of total revenue dropped from 65% to 58.7%.
In terms of business segments, the sales revenue of sofas and supporting products was HK$11.743 billion, a decrease of 7.2%; the revenue of beds and supporting products was HK$2.408 billion, a decrease of 19.4%. Revenue from other products was HK$1.666 billion, down 8.4%. It reflects insufficient consumer confidence, overcapacity in the industry and pressure on price wars. Overseas market revenue has grown, but the scale is only 70% of that of the domestic market, and it is facing uncertainty such as soaring maritime costs.
In order to deal with the downward trend, Minhua Holdings laid off more than 3,700 employees, reduced their employees by more than 10%, and increased their director remuneration by 20%. At the same time, it expanded its domestic stores to 7,367 against the trend, trying to boost demand through the sinking market and the "old-for-new" policy, but the effect has not yet been shown.
Source: Red Star News Client, Southern+
