--- title: "MQR \"Bankruptcy Liquidation Crisis\" Behind: Information Disclosure Violations Under Regulatory Scrutiny, Years of Losses Exceeding 700 Million Yuan" type: "News" locale: "en" url: "https://longbridge.com/en/news/275309847.md" description: "MQR is facing a bankruptcy liquidation crisis due to the failure to pay the remaining equipment payment of RMB 5.9549 million. Guangzhou Minghui Machinery Co., Ltd. has applied to the court for bankruptcy liquidation, but the court ruled not to accept the case. The dispute between MQR and Minghui Machinery arises from the unpaid balance, and both parties failed to reach a resolution, ultimately choosing legal means to protect their rights. MQR has confirmed the relevant liabilities and included them in its financial accounting" datetime: "2026-02-09T11:28:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275309847.md) - [en](https://longbridge.com/en/news/275309847.md) - [zh-HK](https://longbridge.com/zh-HK/news/275309847.md) --- # MQR "Bankruptcy Liquidation Crisis" Behind: Information Disclosure Violations Under Regulatory Scrutiny, Years of Losses Exceeding 700 Million Yuan On February 3rd, the Shenzhen Stock Exchange issued a regulatory letter to the dairy company MQR (002719.SZ), which instantly attracted widespread attention from the market. Image source: Shenzhen Stock Exchange official website As early as the evening of January 27th, MQR announced the disclosure of operational turmoil, stating that due to the failure to pay the remaining equipment payment of 5.9549 million yuan, the creditor Guangzhou Minghui Machinery Co., Ltd. (hereinafter referred to as "Minghui Machinery") has formally applied to the Changji Hui Autonomous Prefecture Intermediate People's Court for bankruptcy liquidation. On February 6th, MQR announced that the company received a "Civil Ruling" from the Changji Hui Autonomous Prefecture Intermediate People's Court in the Xinjiang Uygur Autonomous Region, ruling that the application for bankruptcy liquidation of MQR Group Co., Ltd. by the applicant Guangzhou Minghui Machinery Co., Ltd. would not be accepted. Image source: MQR official announcement **Dispute Background** According to the prompt announcement released by MQR on January 28th, the bankruptcy liquidation application originated from a cooperation dispute with the equipment supplier Guangzhou Minghui Machinery Co., Ltd. (registered in Panyu District, Guangzhou). As a long-term cooperative machinery and equipment supplier for MQR, both parties had previously signed a "Fixed Assets (Machinery Equipment) Contract," agreeing that MQR would purchase two sterile paper packaging flexible filling machines and supporting production equipment from Minghui Machinery for a total price of 8.507 million yuan, to supplement the capacity of the core production line and improve product packaging efficiency. During the performance of the contract, MQR had paid 30% of the first payment, totaling 2.5521 million yuan, but as of the date of the announcement, the remaining equipment payment of 5.9549 million yuan had not been paid. Regarding the disputes arising from the unpaid balance, including related litigation fees and liquidated damages, MQR has completed the corresponding accounting treatment, confirmed the relevant liabilities, and included them in the financial accounting system. It is reported that Minghui Machinery had engaged in multiple rounds of communication and negotiation with MQR regarding the recovery of the unpaid balance but failed to reach a consensus solution, ultimately choosing to protect its rights through legal means by submitting a bankruptcy liquidation application to the Changji Hui Autonomous Prefecture Intermediate People's Court, and the relevant application materials have been formally received by the court. In response to this bankruptcy liquidation application, MQR made a clear statement in the announcement: as of the date of the announcement, the company had not received any ruling from the court regarding the application, and the case was still in the initial review stage. The company's board of directors has legally raised objections to the court and submitted recent financial statements, asset lists, production and operation ledgers, and other relevant supporting materials, clearly asserting that the company's current production and operation activities are normal The core production line is operating in an orderly manner, and the supply and sales channels are smooth, which does not meet the bankruptcy liquidation statutory conditions stipulated in the "Enterprise Bankruptcy Law of the People's Republic of China" of "assets insufficient to pay off all debts" or "obviously lacking repayment ability." MQR further explained that according to the relevant provisions of the "Enterprise Bankruptcy Law of the People's Republic of China," the court will combine the evidence submitted by both parties, the actual operating conditions of the company, and the asset-liability situation to comprehensively assess and legally decide whether to accept this bankruptcy liquidation application. It is worth noting that MQR has highlighted relevant risks in the announcement: there is still significant uncertainty regarding the subsequent developments of this incident. If the court subsequently accepts the bankruptcy liquidation application according to the law, based on the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules (2025 Revision)," the company's stock may be subject to delisting risk warnings. **Behind the lawsuit: consecutive years of losses, products previously detected with propylene glycol** According to the information, although MQR uses "established in 1988" as a later brand selling point, it was officially established in 2002, with its main business being the production and sales of dairy products and the chain operation of baked goods, covering more than 20 products including sterilized milk, formulated milk, and milk-containing beverages. Since its inception, MQR has long been limited by the constraints of regional branding, with low recognition outside the region and weak market acceptance. It is reported that due to consecutive negative net profits in the 2018 and 2019 accounting years, the Shenzhen Stock Exchange legally implemented a "delisting risk warning": in 2018, the company achieved operating revenue of 600 million yuan, with a net profit attributable to the parent company of -154 million yuan, and a net profit margin as low as -25.78%, resulting in significant losses; in 2019, although the performance slightly narrowed, it still did not escape the loss quagmire, with a full-year net profit of -70.883 million yuan and a net profit attributable to the parent company of -69.465 million yuan, with consecutive losses putting the company under severe delisting pressure. Image source: Eastmoney Since May 6, 2020, its stock abbreviation changed from "MQR" to "\*ST MQR," and the risk warning signal was officially implemented. In 2020 and 2021, although MQR briefly turned a profit and even rapidly rose to become a "internet celebrity milk" brand due to the popularity of Xinjiang milk in 2021, this highlight did not last. In 2021, Xinjiang milk frequently appeared on major social media platforms for evaluations and recommendations, and special public welfare live broadcasts hosted by top influencers allowed MQR and other Xinjiang milk brands to enter the public eye. Seizing this opportunity, MQR collaborated with top influencers while also opening flagship stores on platforms like Douyin, using "established in 1988" and "high-quality milk sources from Tianshan Pastures in Xinjiang" as selling points to convert traffic, achieving impressive results. During the same period, the company successfully lifted the delisting risk warning, and the stock abbreviation was restored to "MQR." However, this brief recovery did not resolve its core operational risks. The turning point occurred on June 28, 2022, when two batches of pure milk produced by MQR were found to contain propylene glycol—a food additive strictly prohibited in pure milk. This incident quickly sparked public outrage, plunging MQR into an unprecedented trust crisis, leading to a comprehensive recall of its pure milk products and a devastating blow to its brand image. It is reported that the non-compliant products were due to MQR's failure to effectively clean the tank lines of residual formula milk when switching production from pure milk to formula milk, resulting in the contamination of pure milk with the propylene glycol additive, which was not included in the necessary testing indicators for pure milk, and the company had not conducted any tests for it previously. Two months later, market regulatory authorities imposed severe penalties on MQR: confiscating illegal gains of 360,200 yuan, seizing all non-compliant pure milk products, and imposing a fine of 73.151 million yuan. This fine amount far exceeded the total net profit of approximately 71.21 million yuan for 2020 and 2021, effectively wiping out two years of profits. In addition, relevant responsible persons in the company were fined a total of over 1.5 million yuan, including the legal representative who was fined 718,600 yuan, and the factory manager, production workshop director, and ingredient staff were also fined accordingly. Following the penalties, MQR's dairy product sales plummeted, and its performance completely stagnated, falling into a prolonged state of continuous losses. Image source: Market Regulatory Bureau Financial data shows that from 2022 to 2024, MQR's net profit attributable to shareholders of the listed company was approximately -351 million yuan, -97 million yuan, and -230 million yuan, respectively. In the first three quarters of 2025, the net profit attributable to the parent company was approximately -33 million yuan, with cumulative losses reaching as high as 711 million yuan. During the same period, revenue also continued to shrink, with revenue of 989 million yuan in 2022 dropping to 635 million yuan in 2024, significantly deteriorating profitability, and the net profit margin has long remained in negative territory. MQR's operational crisis extends far beyond performance losses, as legal disputes have also followed. According to reports from Southern Metropolis Daily, as of January 28, 2026, MQR had been listed as a defendant 84 times, with 27 instances since 2022 alone in the Changji City People's Court, involving a total amount of 221 million yuan, further exacerbating its cash flow pressure and laying the groundwork for subsequent bankruptcy liquidation, contrasting sharply with its previous brief period of "internet celebrity milk." On January 31, MQR released its performance forecast for 2025, expecting a net loss to remain negative, with a projected net loss attributable to shareholders of the listed company ranging from 66 million to 79 million yuan, and a net loss after deducting non-recurring gains and losses ranging from 73 million to 86 million yuan. How to develop in the future has become an unavoidable life-and-death question for this internet celebrity dairy company. Image source: MQR official announcement Once rapidly rising due to the Xinjiang milk source boom, MQR is now in trouble due to its own mismanagement and inadequate crisis response. Whether MQR can break the deadlock and revive may only be tested by time. 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