Core Points - The core issue revolves around the financial crisis faced by Dongguan Mengda Group, which has led to the involvement of law enforcement due to allegations of illegal public deposit absorption [1][11] Company Overview - Mengda Group, established in 2010, is a national high-tech enterprise focused on integrated industrial development services, utilizing technologies such as big data, IoT, and AI [4][15] - The company serves over 1 million plastic chemical enterprises and has an online trading volume exceeding 240 billion yuan, ranking among China's top 10 B2B platforms [4][15] Crisis Development - On October 24, the company acknowledged a significant crisis in a letter to clients, indicating that hundreds of users were experiencing a run on funds, leading to abnormal termination of platform operations [4][15] - The crisis was exacerbated by a protective freeze on the company's bank accounts due to police investigations into a money laundering organization, causing panic among clients and a rush to withdraw funds [10][21] Financial Strain - To address the liquidity crisis, the company has diverted substantial cash reserves from its subsidiaries to the platform, resulting in tight cash flow [4][10] - The economic downturn has also impacted the company's client base, leading to overdue payments and bad debts, further straining financial resources [18][21] Business Operations - Despite the crisis, other business segments of Mengda Group, including digital technology and supply chain services, continue to operate normally [19] - The company is exploring options for restructuring its operations, including a gradual exit from certain business lines while ensuring client rights are protected [19][21] Investor Relations - Mengda Group has proposed a debt restructuring plan involving a "debt-to-equity swap" to address investor concerns, although many investors remain hesitant to sign the agreement [22][23] - Investors are expressing fears about potential losses due to the ongoing crisis and are seeking ways to withdraw their investments [23]

Core Viewpoint - The article discusses the legal troubles faced by Dongguan Mengda Group Co., Ltd. and its actual controller Li, who has been investigated for illegal public deposit absorption, leading to investor concerns and actions [3][4]. Company Overview - Mengda Group was established in 2010 and is recognized as a national high-tech enterprise focusing on industrial integration development services, utilizing technologies such as big data, IoT, and AI [6]. - The company claims to serve over 1 million plastic chemical enterprise clients, with an online trade volume exceeding 240 billion yuan, positioning itself among the top 10 B2B platforms in China [6]. Recent Developments - On October 24, Mengda Group issued a letter to clients indicating that hundreds of users were experiencing a "run on the bank," leading to abnormal termination of platform operations and severe withdrawal of funds [6]. - The letter mentioned that the company had to mobilize cash from its subsidiaries to address the liquidity crisis [6]. Investor Reactions - Multiple investors expressed concerns about the "run on the bank" situation, fearing potential losses and seeking to withdraw their investments, but found it challenging to do so [7]. - Following the police announcement, investors are hopeful for a resolution and the possibility of recovering their invested funds [7].

Core Viewpoint - The article discusses the financial troubles faced by Dongguan Mengda Group Co., Ltd., highlighting a significant "run on the bank" situation where hundreds of users are unable to withdraw their investments, raising concerns about the company's financial stability and operational integrity [3][10]. Company Overview - Mengda Group was established in 2010 and is recognized as a national high-tech enterprise focused on integrated development services, utilizing technologies such as big data, IoT, and AI to create a digital service platform [3]. - The company claims to have over 1 million clients in the plastic chemical industry and an online trading volume exceeding 240 billion yuan, positioning itself among the top 10 B2B platforms in China [3]. Investment Scheme - The investment platform "Liuke Yunbang" offered investors fixed annual returns of 8% to 12%, promoting a perception of safety and ease in profit generation [5][6]. - Investors were required to sign two agreements: a "Distribution Cooperation Agreement" and a "Service Agreement," neither of which explicitly mentioned investment or returns, raising red flags about the legitimacy of the investment scheme [6][8]. Financial Crisis - On October 24, the company acknowledged a cash flow crisis due to a sudden halt in platform operations and significant customer withdrawals, attributing the situation to multiple factors, including a police investigation into money laundering that affected their bank accounts [10]. - The company proposed a "debt-to-equity swap" solution to investors, allowing them to exit their investments through a structured repayment plan [10]. Legal Actions - Investors have reported the company to the police, alleging illegal public deposit solicitation without regulatory approval, which could lead to serious legal consequences for the company [11].