China News Service, July 26th, "Where the sun rises, we stand at the peak to meet the glory, and let the flag of the world's knowledgeable business fly in the wind." This is the lyrics of the theme song sung by singer Sun Nan for Huiju.com.
According to previous media reports, Huiju.com invited Sun Nan to speak for it during its heyday.
Sadly, the unicorn companies that were once in the field of intellectual property are now being investigated.
On July 25, the WeChat public account of “Guangzhou Huangpu Public Security” announced that Guangzhou Boao Zongheng Network Technology Co., Ltd. (Huiju.com) was suspected of illegally absorbing public deposits. Criminal suspects take criminal coercive measures in accordance with the law.
Currently, the case is under further investigation.
The picture is from the WeChat public account of "Guangzhou Huangpu Public Security".
Once the darling of capital, the scenery is infinite
According to public information, Guangzhou Boao Zongheng Network Technology Co., Ltd. (hereinafter referred to as "Boao Zongheng") was established in July 2013, with Xie Xuhui holding 51% of the shares and serving as chairman and general manager.
In 2013, Boao established the website "Huiju.com" to provide intellectual property operation services; in 2016, through its wholly-owned subsidiary Guangzhou Zhishang Internet Technology Co., Ltd., it established the "Zhishang Finance" website to carry out Internet financial business.
Boao was once regarded as the darling of capital.
According to media reports, since 2014, Boao Zongheng has successively received well-known PE/VC investments such as Hopu Investment, Dark Horse Fund, IDG Capital, Guangdong Minsheng Investment, etc. It was a well-known "unicorn" enterprise in the field of intellectual property at that time.
It was also selected in the 2018 "China Unicorn TOP100" list and the 2019 Hurun Global Unicorn List, etc., with a valuation of 10 billion yuan.
In those years, Huiju.com has also been "rising step by step" in terms of performance and scale.
According to Xie Xuhui, Huiju.com received Series A financing in January 2015, and its registered members exceeded 1 million that year, of which corporate members accounted for more than 40%; by 2017, Huiju’s revenue exceeded 700 million yuan, and its members The number and market share have increased steadily. In April 2017, it received a B round of financing and officially entered the unicorn-level enterprise sequence; by 2019, it has reached 2.45 billion contract performance, 1.39 billion operating income, and 5.6 million registered members.
Loan default, broken capital chain... Investigated
However, according to the information released by "Shenzhen Stock Exchange Research", since the end of 2019, some companies have reported that they have not received government subsidies or that the amount of government subsidies is far less than the amount promised in the agreement, and Huiju.com has not provided intellectual property operation services according to the agreement. Huiju.com will refund the service fee according to the agreement.
After being rejected or delayed by Huiju.com, a group of companies filed lawsuits, and Huiju.com faced a large number of service contract disputes.
Some courts have found that Huiju.com breached the contract in the lawsuit and supported the company's request for a refund.
Many of the above-mentioned companies that have had service contract disputes with Huiju.com borrowed Zhishang Financial loans. Some companies refused to continue to repay the loan principal and interest when the government subsidy failed and the service fee has not been refunded.
In addition, under the impact of the new crown epidemic and changes in the macroeconomic situation, some other small and medium-sized enterprises that normally borrowed from Zhishang Finance were also unable to repay in time due to operational difficulties.
As a result, Zhishang Finance has formed a large number of bad debts, resulting in a break in the capital chain and the inability to pay the principal and interest of the wealth management products issued to the public, causing a large number of investors to call the police.
The research report also mentioned that judging from this thunderstorm incident, Zhishang Finance is largely an illegal Internet financial platform under the banner of intellectual property finance.
First, there is no relevant financial business qualifications.
Second, on the capital side, illegal fund-raising promises high returns, and the stakeholder risk is relatively high.
Third, on the asset side, intellectual property assessment and risk disposal capabilities are still insufficient, and the risk of bad debts is relatively high.
Zhishang Finance was once included in the P2P rectification list, and eventually a large-scale redemption crisis occurred.
In September 2020, the Guangzhou Huangpu District police officially opened an investigation into Zhishang Finance, saying that "the victims of the case are all over the country, involving a huge amount of money" and "suspected of illegal fundraising."
In February 2020, Huiju.com employees also broke the news that the company was in arrears with the company and financed fraudulently.
In September 2020, Huiju.com officially released an article written by Xie Xuhui, which mentioned, "At present, Huiju really has no money in the account, and the cash flow is extremely tight, not everyone thinks that we have money and intentionally default on not paying wages, supplying Merchant funds, customer refunds and Zhishang Financial advances, etc. There is no such thing as the transfer of assets rumored on the Internet, because there is no asset worth transferring, Huiju’s biggest asset is the brand and platform of Huiju.”
But many victims didn't buy it, bluntly calling "liars" and demanding "return their hard-earned money."
In 2021, Boao Zongheng received a notice of bankruptcy and liquidation issued by the Guangzhou Intermediate People's Court.
On February 22, 2021, the applicant Ruan Jiahao applied to the court for bankruptcy liquidation on the grounds that Boao Zongheng could not repay the due debts and the assets were insufficient to repay all the debts or obviously lacked solvency.
As of July 26, the information from Tianyan Check showed that Guangzhou Boao Zongheng Network Technology Co., Ltd. was involved in 1,242 legal proceedings, involving a total amount of more than 1.3 billion yuan, and 973 pieces of information on filing.
The company and its actual controller, Xie Xuhui, were repeatedly listed as dishonest persons subject to execution and received a consumption restriction order.
(Zhongxin Finance)