Core Viewpoint - The financial turmoil of the "Xiangyuan System" has led to significant market value losses for its three listed companies, revealing a critical liquidity crisis within the group [1][12]. Group 1: Financial Issues - The overdue financial products of the Xiangyuan System are linked to real estate debt projects, indicating a severe liquidity problem [2][4]. - The stock prices of Xiangyuan's listed companies dropped significantly, with Xiangyuan Culture down 3.62%, Jiaojian Shares down 10.02% (limit down), and Haichang Ocean Park down 1.92% on December 8 [1][12]. - The overdue financial products are categorized as low-risk with yields of only 4%-5%, yet the Xiangyuan System's financing costs are much higher, at 8%-9% [4][16]. Group 2: Company Structure and Operations - Xiangyuan Holdings, established in 1992, has a business structure that includes tourism, real estate, and infrastructure, with total assets exceeding 250 billion [6][15]. - The company’s real estate sales decline is a primary reason for its inability to meet payment obligations, as highlighted by the CEO during an investor communication meeting [15]. - The company has a total asset of 600 billion and total liabilities exceeding 400 billion, indicating a high leverage situation [15][19]. Group 3: Market and Expansion Strategy - Xiangyuan's real estate projects are primarily located in lower-tier cities, which have been under significant pressure due to the declining real estate cycle [16]. - Despite challenges in the real estate sector, Xiangyuan has been aggressively expanding its cultural tourism projects, acquiring multiple assets across various provinces [16][17]. - The company has also ventured into high-tech fields, such as low-altitude tourism, indicating a diversification strategy amidst financial difficulties [17]. Group 4: Leadership and Historical Context - The founder, Yu Faxiang, has a history of leveraging both real estate and capital markets for expansion, which has led to the current crisis as the market conditions have shifted [18][19]. - The Xiangyuan System's reliance on high leverage and capital operations has been effective during favorable market conditions but has exposed vulnerabilities during downturns [19].