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].