Core Viewpoint - The article discusses the downfall of Xiong Xiong, the chairman of Shanyuhai Group, who was previously celebrated for his motivational speeches but is now under investigation for illegal fundraising activities, highlighting the risks associated with high-return investment promises [1][2][4]. Group 1: Company Background - Shanyuhai Group, founded by Xiong Xiong, is a wellness and tourism enterprise focusing on high-end health services, with operations in real estate, e-commerce, overseas finance, and mining [10]. - The company has developed over 70 wellness bases domestically and internationally, offering vacation services and charging membership fees [10]. Group 2: Investment Products and Promises - Shanyuhai's main projects include residential properties in Zhoushan, promising annual rental returns of approximately 8% and additional profit-sharing options [13]. - The company also operates a financing leasing platform, providing rental services for electronic products with returns of 9.9%-12%, but investors have reported difficulties in withdrawing funds since March [15]. Group 3: Legal Issues and Investigations - The company is currently under criminal investigation for illegal fundraising, with law enforcement taking action against its branches in Hangzhou and Shanghai [4]. - The investigation was triggered by issues related to its internet finance projects rather than its real estate offerings [13]. Group 4: Market Context and Risks - The article notes a trend of similar investment firms facing legal troubles due to unsustainable high-return promises, leading to significant financial losses for investors [18]. - The case of Shanyuhai Group reflects broader concerns in the investment landscape, where companies often lack solid underlying assets and may operate as Ponzi schemes [18].

Core Viewpoint - The company "Shan Yu Hai," a well-known cultural tourism and health care enterprise, is facing severe operational issues due to allegations of illegal public deposit absorption, leading to criminal investigations and the detention of its executives [1][4][10]. Group 1: Company Operations and Financial Issues - Shan Yu Hai was reportedly operating normally until early April 2024, with ongoing strategic meetings and new project announcements [2]. - However, by early April, numerous investors began to voice concerns online about the company's inability to process withdrawals from its leasing platform, "Mai Zi," indicating a liquidity crisis [3][5]. - The company has diversified its operations beyond tourism and health care into sectors such as real estate, health management, and overseas mining, which may have contributed to its financial strain [11]. Group 2: Investment Model and Legal Concerns - The investment model of "Mai Zi" involved high promised returns of 9%-12% on rental income, which attracted many investors but lacked transparency regarding the actual rental assets [6][7]. - Legal experts have indicated that the company's practices may constitute illegal public deposit absorption due to their high returns, lack of real product flow, and public solicitation [6][7]. - The company has not published financial reports since 2019, raising concerns about its financial health and transparency [10]. Group 3: Investor Reactions and Consequences - Investors have expressed frustration over their inability to withdraw funds, with some reporting losses exceeding 1 million yuan [5][14]. - The company's physical locations have been reported as closed, and there is a significant presence of investors seeking recourse for their losses [13][14]. - The founder and chairman of Shan Yu Hai has become less visible, and the company's communication channels have ceased updates since early April [12][14].

Core Viewpoint - The Shanyuhai Group is under investigation by police in Shanghai and Hangzhou for suspected illegal public deposit absorption, leading to the detention of its executives and a significant number of elderly investors seeking to report their losses [1][3][6]. Group 1: Company Overview - Shanyuhai Group started as a vacation and health service provider and has expanded into various sectors including real estate, healthcare, and overseas investments, being recognized as one of the "Top 500 Zhejiang Merchants" for nine consecutive years [1][6]. - The company operates a membership-based model, offering services such as travel, health, and social activities, primarily targeting middle to high-income elderly individuals [6][7]. - Shanyuhai Group has over 70 health and wellness bases across China and internationally, utilizing various operational models including self-management and franchise partnerships [6][12]. Group 2: Financial and Operational Aspects - The company’s revenue model is based on upfront membership fees, allowing members to access services without additional payments during their membership period [7][10]. - Shanyuhai Group's subsidiary, Shanyuhai Co., was previously listed on the New Third Board and was known as China's "first migratory living stock" [1][12]. - The company has faced financial challenges, with a significant drop in net profit growth since 2017, and reported a loss in mid-2020 [16]. Group 3: Recent Developments - The investigation into Shanyuhai Group was triggered by issues related to its subsidiary, Maizi Leasing, which faced complaints from investors regarding contract fulfillment and withdrawal difficulties [10][16]. - The company has been actively promoting its investment opportunities in communities, leading to a large number of elderly investors becoming involved [8][10]. - Shanyuhai Group has plans for further capital market activities, including a potential listing in the U.S. for its health technology subsidiary [16].