Billionaire Yu Faxiang Faces Multiple Crises, Xiangyuan Group in Turmoil

After being subjected to criminal enforcement measures at the end of 2025 for suspected crimes, Yu Faxiang, the head of the “Xiangyuan Group” whose net worth once reached 14.5 billion yuan, has once again fallen into a new predicament. On the evening of February 26, Xiangyuan Cultural Tourism (600576.SH) disclosed in an announcement that this billionaire’s personal holdings are under rare “exceeding limit” freeze due to debt disputes, which is only a microcosm of the overall crisis facing the “Xiangyuan Group.”

The announcement clearly states that Yu Faxiang’s direct holdings of all 1.4436 million shares of Xiangyuan Cultural Tourism have been judicially frozen due to disputes over financial loan guarantee contracts. Additionally, the frozen shares are 4.3308 million, accounting for 300% of his personal shareholding. This “exceeding limit” freeze ratio is quite rare in the capital market and directly reflects the severe debt crisis Yu Faxiang is facing.

Apart from Yu Faxiang’s personal shares, the holdings of related entities within the “Xiangyuan Group” have also been fully frozen. As of February 26, 37.38% of the shares of Xiangyuan Tourism Development Co., Ltd., the controlling shareholder of Xiangyuan Cultural Tourism, have been frozen, along with 20.56% held by its concerted action partner, Anhui Xiangyuan Cultural Development Co., Ltd. The total shares judicially frozen for Yu Faxiang, Xiangyuan Tourism Development, and Anhui Xiangyuan amount to 612 million shares, representing 58.08% of Xiangyuan Cultural Tourism’s total share capital.

Xiangyuan Cultural Tourism openly admits in the announcement that the current freeze of the actual controller’s shares will not significantly impact the company’s control rights. However, the high proportion of shares frozen and under waiting freeze involving the actual controller, controlling shareholders, and their concerted action partners poses a risk of affecting the stability of the company’s control if judicial disposal actions are subsequently taken.

This large-scale freeze of shares is essentially a “aftershock” caused by the default of the “Xiangyuan Group” debt. Going back to the evening of December 22, 2025, three listed companies—Xiangyuan Cultural Tourism, Jiao Jian Co., Ltd., and Haichang Marine Park—simultaneously announced that the actual controller of the companies, Yu Faxiang, had been subjected to criminal enforcement measures by the Shaoxing Public Security Bureau for suspected crimes.

Although the specific case details have not been disclosed officially, media reports suggest that Yu Faxiang’s investigation is directly related to the large-scale overdue payments of financial products issued by companies under the “Xiangyuan Group.” It is said that the total scale of these financial products may exceed 10 billion yuan, and Yu Faxiang and his controlled Xiangyuan Holding Group Co., Ltd. provided joint liability guarantees for these products, which became the core trigger for his crisis.

Public information shows that Yu Faxiang was born in 1971 in Shengzhou, Zhejiang. As the core leader of the “Xiangyuan Group,” his business empire spans tourism, real estate, infrastructure, and other sectors, controlling multiple listed companies including Xiangyuan Cultural Tourism, Jiao Jian Co., Ltd., and Haichang Marine Park. Just before the crisis erupted in October 2025, Yu Faxiang was ranked 465th on the Hurun Rich List with a net worth of 14.5 billion yuan, still a highly regarded billionaire.

After Yu Faxiang was subjected to criminal enforcement measures, a chain reaction occurred within the “Xiangyuan Group.” On the same day, his cousin and trusted financial aide, Yu Honghua, quickly resigned from positions including director of Jiao Jian Co., Ltd., non-executive director of Haichang Marine Park, and member of the remuneration committee. It is reported that Yu Honghua has held key financial roles within the “Xiangyuan Group” since 1998, serving as the financial director of Xiangyuan Holding for many years and, after 2021, as general manager. An insider revealed that Yu Honghua may also be involved in this incident.

The chain reaction of the crisis has directly impacted the operations of the “Xiangyuan Group” listed companies. Due to Yu Faxiang’s debt crisis and other factors, Jiao Jian Co., Ltd. reported a significant loss in 2025, with an estimated net profit attributable to shareholders of -700 million to -350 million yuan. The company stated that the loss mainly resulted from restructuring the construction business of the real estate projects with the controlling shareholder, Xiangyuan Holding. Considering the uncertainties related to Xiangyuan Holding and the overall real estate market, the company believes there is a risk of bad debts related to operational receivables from related parties of Xiangyuan Holding, and plans to make large provisions for bad debts, leading to the loss.

From being a billionaire on the Hurun Rich List to being imprisoned and having holdings frozen threefold, Yu Faxiang and the “Xiangyuan Group” he built are facing an unprecedented survival crisis. Moving forward, as criminal investigations progress and debt disputes are resolved, whether the “Xiangyuan Group” can survive this ordeal and whether control of its listed companies will change remain to be seen.