Core Viewpoint - The article discusses the financial troubles faced by Jinyafu Group, highlighting widespread defaults on investment products and potential illegal fundraising activities [2][3][39]. Group 1: Company Overview - Jinyafu Group, established in 2006, is a well-known gold processing company based in Shenzhen, specializing in a comprehensive range of services in the gold and jewelry industry [5]. - The company has developed into a one-stop service provider, including cultural innovation research, smart manufacturing, personalized customization, smart retail, gold recycling, refining, and logistics [5]. Group 2: Investment Product Issues - Since June 2023, multiple investment products associated with Jinyafu have experienced significant payment defaults, with estimated funds involved ranging from 7 billion to 8 billion yuan [2][5]. - Many of these products promised annual returns exceeding 10%, with some investors reporting that their returns ceased as of June [2][3]. - The company has proposed several "upgrade plans" to delay the pressure from these defaults, including converting expired projects into franchise operations and offering debt guarantees from related parties [5][6]. Group 3: Legal and Regulatory Concerns - Legal pressures have intensified, with multiple civil cases against Jinyafu, including a significant case related to financial contract disputes set to be heard in December 2023 [8][39]. - The company has been accused of using complex contractual arrangements to mislead investors, particularly through a model labeled as "golden entrustment," which has raised concerns about potential illegal fundraising [12][39]. - Regulatory bodies have indicated that the company's practices may violate laws against illegal fundraising, as they appear to attract public investment without proper authorization [39]. Group 4: Investment Models and Returns - Jinyafu's investment products often involve a two-step process where investors first sign a physical gold purchase contract without taking delivery, followed by a contract with a third party for investment purposes [12][20]. - The "Cultural Gold" product claims to offer high returns through various sales channels, but industry insiders question the feasibility of achieving promised profit margins [14][15]. - Some investment agreements include clauses that effectively guarantee returns, blurring the lines between equity investment and debt, which raises further regulatory concerns [31][34]. Group 5: Investor Experiences and Reactions - Investors have reported significant delays in receiving payments, with some employees of Jinyafu also experiencing reduced benefits and delayed salaries [8][39]. - The company has been accused of using "pyramid schemes" to circumvent investor qualification requirements, allowing individuals with insufficient financial assets to participate in high-risk investments [34][39].