Jing Ji Guan Cha Wang·2025-12-23 05:24Core Viewpoint - The financial crisis involving Zhejiang businessman Yu Faxiang has escalated, leading to his criminal detention due to the inability to repay over 10 billion yuan in financial products linked to his company, Xiangyuan Holdings [2][8]. Company Overview - Yu Faxiang, born in 1971 in Zhejiang, is the chairman of Xiangyuan Holdings, which owns three listed companies: Haichang Ocean Park, Jiaojian Co., and Xiangyuan Cultural Tourism [3][4]. - Xiangyuan Holdings has focused on three main industries: cultural tourism, real estate, and construction since entering the cultural tourism sector in 2010 [5][6]. Financial Performance - Xiangyuan Holdings has faced significant financial challenges, with total assets of approximately 60 billion yuan and liabilities of 40 billion yuan, indicating a temporary cash flow crisis due to the downturn in the real estate sector [8]. - The company has experienced a continuous decline in revenue over the past three years, with revenues of 13.66 billion yuan, 11.84 billion yuan, and 10.73 billion yuan from 2022 to 2024, reflecting an average annual decline of 11.39% [9]. - The real estate segment has been particularly affected, with new construction areas dropping significantly from 615,300 square meters in 2022 to 96,500 square meters in 2024 [9]. Crisis Development - The crisis began on November 28, when multiple financial products guaranteed by Yu Faxiang and Xiangyuan Holdings failed to meet repayment obligations, leading to a total repayment amount exceeding 10 billion yuan [2]. - Following the crisis, Yu Faxiang's shares in Xiangyuan Cultural Tourism and Jiaojian Co. were frozen, and he was detained by the authorities [2][8]. Regulatory Response - A support task force was established on December 12 to assess the company's assets and liabilities, aiming to ensure the company meets its debt obligations and maintains normal operations [11]. - The task force's primary goal is to conduct a comprehensive audit of Xiangyuan Holdings' financial situation, although specific repayment plans have yet to be disclosed [13].