Hangzhou Zhang Xiaoquan Group (referred to as Zhang Xiaoquan) and legal entities have been subjected to a restriction on high consumption due to an enforcement amount of 3.13 billion Chinese Yuan, sparking a hot trend in the news.
Recently, Hangzhou Zhang Xiaoquan Group Co., Ltd, Shanghai Fuchun Investment Co., Ltd, Zhang Zhangsheng, Zhang Guobiao, and others have been added as individuals subject to enforcement information, with the enforcement target amount surpassing 3.13 billion Yuan, and the enforcing court being the Hangzhou Intermediate People’s Court of Zhejiang Province.
Hangzhou Zhang Xiaoquan Group Co., Ltd was established in January 2001, with Zhang Zhangsheng as its legal representative, and a registered capital of approximately 16.817 million Chinese Yuan, jointly held by Hangzhou Fuquan Investment Co., Ltd and Hangzhou Zhang Xiaoquan Group Co., Ltd Union.
Additionally, risk information from Tianyancha indicates that the company currently has 6 individuals subject to enforcement information, with a total enforcement amount exceeding 3.8 billion Yuan.
Due to failing to fulfill the payment obligations determined by effective legal documents within the specified period in the enforcement notice, Hangzhou Zhang Xiaoquan Group Co., Ltd and its legal representative Zhang Zhangsheng have been restricted from high consumption.
Shanghai Fuchun Investment Co., Ltd was established in August 1993, with Zhang Guobiao as its legal representative, a registered capital of 843 million Chinese Yuan, jointly held by Zhang Guobiao and Zhang Zhangsheng.
This news has trended online with netizens discussing fervently.
Hangzhou Zhang Xiaoquan Group Co., Ltd mainly operates in scissors, kitchen tools, and other products, being one of China’s renowned traditional brands.
Public records show that Zhang Xiaoquan is the first listed company in the Chinese knife and scissor industry. Before 1949, Zhang Xiaoquan scissors were well-known in the Chinese scissor industry, being compared to the saying “There is Wang Mazhi in the north and Zhang Xiaoquan in the south.”
Zhang Xiaoquan disclosed its annual report on April 17, 2023, revealing a 47.3% year-on-year decrease in net profit in 2022.
In the past two years, Zhang Xiaoquan has faced continuous controversies, frequently involved in the “broken knife” incidents. Despite multiple responses, they have struggled to address the issues, even being seen as conflicting with consumers at times.
In July 2022, “Zhang Xiaoquan kitchen knife breaks when cutting garlic” trended on Weibo, sparking discussions. On February 21 of the same year, the news of a broken Zhang Xiaoquan knife made headlines again on Weibo. In March, netizens revealed another incident of a broken Zhang Xiaoquan bone-chopping knife, leading to another “broken knife” controversy.
In response, the deputy general manager of Zhang Xiaoquan stated, “The method of using the knife is not professional.” The customer service of Zhang Xiaoquan responded, “The force and angle of using the knife are incorrect.”
In 2023, Zhang Xiaoquan Company achieved an operating income of 811 million Yuan, a 1.82% year-on-year decrease; a net profit of 25.1183 million Yuan, a 39.48% year-on-year decrease; a non-net profit of 20.2666 million Yuan, a 42.69% year-on-year decrease; both the net profit and non-net profit have significantly declined for two consecutive years.
On May 22, Zhang Xiaoquan Company received an annual report inquiry letter from the Shenzhen Stock Exchange, requesting detailed explanations for the decline in net profit and future risks. Simultaneously, inquiries were made regarding the enforcement situation of the actual controller and controlling shareholders, requiring Zhang Xiaoquan to provide explanations and make public disclosures by June 5.