Core Viewpoint - Recently, Shanyuhai Investment Group has been investigated by the police in Shanghai and Hangzhou for suspected illegal public deposit absorption, with the company's owner and relevant personnel detained [1][4][12]. Group 1: Company Overview - Shanyuhai Investment Group started as a vacation service provider and has expanded into various sectors including hotels, real estate, health care, internet hospitals, scenic area development, overseas finance, and mining [15][18]. - The company operates over 70 health care bases both domestically and internationally, utilizing a model that includes self-built, owner-managed, and cooperative franchises [7][18]. - Shanyuhai Group's subsidiary, Shanyuhai Co., was once listed on the New Third Board and was recognized as China's "first migratory vacation stock" [15][18]. Group 2: Business Model and Services - The company offers a membership-based service for migratory vacationing, requiring customers to pay a one-time membership fee to access various services without additional charges during the membership period [6][8]. - Shanyuhai also engages in real estate investments, promoting properties with promises of high rental returns, such as an 8% annual return on seaside properties [10][12]. - The business model has attracted many elderly investors, who were often introduced to the services through community outreach or referrals [5][6][8]. Group 3: Recent Developments - The investigation into Shanyuhai Group was triggered by complaints from investors regarding the inability to withdraw funds upon contract expiration, particularly related to its subsidiary, Maizi Leasing [11][12]. - The company has faced declining net profit growth since 2017, with a significant loss reported in the 2020 mid-year financials [19]. - Shanyuhai Group's chairman, Xiong Xiong, has been recognized as a leading figure in the health care sector and has ambitions for the company to diversify into mining and other industries [21][18].

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].