Ruyi Group(SZ:002193) Chang Jiang Shang Bao·2025-10-27 01:43Core Viewpoint - The article discusses the downfall of Qiu Yafu, the actual controller of Ru Yi Group, which is under investigation by the China Securities Regulatory Commission (CSRC) due to financial misconduct and has faced significant losses and regulatory penalties over recent years [1][25]. Group 1: Company Background - Ru Yi Group, once referred to as "China's LV," has faced multiple administrative sanctions and disciplinary actions in recent years, leading to Qiu Yafu being banned from the market for 10 years by the CSRC [1][25]. - At its peak, Qiu Yafu controlled four listed companies and held over 40 luxury brands, accounting for approximately one-third of the global luxury brand market [3][17]. Group 2: Business Strategy and Expansion - Qiu Yafu's aggressive expansion strategy involved leveraging high debt to acquire global assets, spending around 40 billion yuan over a decade on acquisitions [2][17]. - The company initially thrived by producing high-quality fabrics, with products priced at up to 68,000 yuan per meter, attracting major international brands as clients [9][11]. Group 3: Financial Troubles and Consequences - Ru Yi Group has reported cumulative losses exceeding 2.1 billion yuan over the past three and a half years, with a current market value of only 1.458 billion yuan [4][26]. - The company has faced severe financial distress, including a debt crisis exacerbated by the COVID-19 pandemic, leading to defaults and loss of control over key assets [21][22][25]. - As of mid-2025, Ru Yi Group's monetary funds were only 13.92 million yuan against interest-bearing debts of 1.157 billion yuan, indicating a precarious financial situation [27].