Core Viewpoint - The article discusses the controversial practices and financial struggles of Beijing Shengshang Education Technology Co., Ltd. (Shengshang Education), highlighting its transition from a promising educational consulting firm to a company facing legal and financial challenges due to alleged fraudulent activities and poor management practices [1][4][6]. Company Overview - Shengshang Education was founded in 2014 by Yuan Li, focusing on providing strategic management and financial services to small and medium-sized enterprises [1][2]. - The company initially thrived in the booming education market, achieving significant revenue and profit growth, with 2019 revenues reported at 753 million yuan and a net profit of 173 million yuan [4]. Financial Performance - The COVID-19 pandemic severely impacted Shengshang Education's financial performance, with revenues dropping to 332 million yuan in 2020, a decline of 55.92% year-on-year, and net profit falling to approximately 50 million yuan, a decrease of over 70% [5]. - The company faced scrutiny from regulatory bodies due to numerous complaints regarding its business practices, including allegations of misleading advertising and potential pyramid scheme activities [6][9]. Legal Issues - In 2023, a court ruled that Shengshang Education engaged in false advertising, resulting in a compensation order of 100,000 yuan to Tsinghua University for damages [6]. - The company has faced multiple warnings and regulatory actions due to financial discrepancies and improper resource usage, leading to its decision to exit the New Third Board in 2021 [9]. Business Model and Strategy - Shengshang Education's business model has been criticized for its reliance on high tuition fees for courses that many former students claim did not provide value, leading to a negative reputation in the market [5][10]. - The company attempted to pivot its business strategy by entering the liquor market through a merger with Qidian International, rebranding itself as Qidian Guofeng and focusing on the production and sale of liquor products [10][11]. Market Position and Future Prospects - Despite the shift to the liquor industry, Shengshang Education's new venture has struggled, with reported liquor sales of 17.2 million yuan in mid-2025, a decline of 52.59% year-on-year, indicating challenges in establishing brand recognition and market presence [10]. - The company's founder, Yuan Li, has a history of capitalizing on market trends, but the sustainability of Shengshang Education's new strategies remains uncertain, especially in a challenging economic environment [11][14].