Produced by: Sina Finance Research Institute of Listed Companies

Author: Dayan Lou Guan/Banyin

On November 11, I love my family Holding Group Co., Ltd. (hereinafter referred to as "I love my family") announced that Dong Lili, the financial director, recently submitted her resignation application for personal reasons. According to the company's information disclosure, Dong Lili joined my family in July 2013. It is noteworthy that an old employee who has joined the company for more than 10 years chose to resign less than one year after serving as the financial director.

From the performance of the first three quarters of the company, the operating revenue from January to September was 9.073 billion yuan, with a year-on-year growth of 2.11%; The net profit attributable to the parent company was - 0.68 billion yuan, with a year-on-year loss of 68.98%. The income has slightly recovered, while the loss has narrowed. According to the annual report and semi annual report, the housing lease management related business has become the company's top business in terms of revenue, but the use of funds and project development progress related to this business also need follow-up attention.

At the end of August, the company announced that it had received a notice from the relevant government departments that it needed to return part of the subsidy funds, the total amount of which was 52.9489 million yuan, according to the Notice on Returning Part of the Special Funds for Hangzhou Central Finance to Support the Pilot Development of the Housing Rental Market. As for the reason for the return, the company did not disclose the specific reason, nor did it give a clear answer in answering investors' questions.

In the process of gradual recovery of the company's performance, the frequent personnel changes in the company are more worthy of attention. Including the resignation of the financial director mentioned at the beginning of the article, according to incomplete statistics of the company's announcement, seven executives have resigned this year, including Hua Jiajun, chairman of the board of supervisors of the company at the end of January, Zhu Wei, vice president, Fu Ziming, financial director in mid March, He Yang, vice president in early April, Pan Sijia and Chen Yigang, vice presidents in early July and mid July. The financial director, as the core of the company's finance, was replaced twice in the year, which makes it difficult to doubt the reason for frequent personnel changes in important positions.

In fact, according to public reports, in July of this year, the personnel unrest of my family's Hangzhou company, including the suspension of senior executives, once caused uproar. Finally, the company also issued a communication letter indicating that Hangzhou company was interfered by unfair competition means, and found violations of the company's commercial interests. Whether this is related to the frequent turnover of other executives during the year, and how much impact it will have on the company's follow-up remains to be seen.

In addition, the original second largest shareholder of the company, Wuba Co., Ltd., also transferred shares twice within one year. First, the shareholding reduction period expired on March 19 this year. During this period, Wuba Co., Ltd. reduced 0.55% of its shares at an average price of 3.01 yuan per share; Then in April, May 8 Co., Ltd. announced another reduction, and the reduction period expired on October 27, during which it reduced 2.73% of its shares at an average price of 3.33 yuan per share. After the above two share reductions, the shares held by May 8 Co., Ltd. have changed from 19500000 to 117774943, down from 8.26% to 4.999996%, and they are no longer shareholders holding more than 5% of the company's shares. These two share reductions are the only two since May 8 Co., Ltd. held them in 2018. Although there was also a pre disclosure announcement of the share reduction plan before, they were not actually reduced in the end.

It is also worth noting that the price of the two reduction is about 2.93-3.61 yuan. According to the relevant announcements of the company in 2017 and 2018, the shares held by May 8 Co., Ltd. were 19500000 shares after the transfer of 150000000 shares by three shareholders, including He Zhaojiusheng, Handing Century and Tibet Shengju, and the equity distribution of 3 shares for every 10 shares was implemented. The transfer price after excluding rights was 5.48 yuan. That is to say, even if interest is not taken into account, the two transfers were made at a discount for May 8 Co., Ltd. The original second largest shareholder's cumulative reduction of more than 3% of shares at discount is due to its own capital and strategic arrangements, or other reasons to be observed, but this may also have an impact on market judgment to some extent.