In the city of Putian, Fujian Province, the nearly 30-year-old shoe industry giant, Xinda Footwear Co., Ltd., has been collecting funds from the surrounding villagers. However, the owner has disappeared with suspicions of running away with the money, leading to hundreds of villagers seeking refunds from the government. The amount involved is reportedly around 400 million yuan.
Xinda Footwear Co., Ltd. was established in 1999 with a registered capital of 22.99 million yuan. The company is located at No. 407, Tiantou, Xitian Village, Hushi Town, Xiuyu District, Putian City. It is engaged in the export business of its own products and technology, as well as the import business of raw materials, machinery, spare parts, and technology needed for production. The company also processes, manufactures, and sells shoes made from raw materials.
Due to the trade war between the United States and China, mainland Chinese export industries, especially those exporting to the United States, are facing difficulties, leading to closures and business interruptions across various sectors, including the shoe industry.
Wang Hao (pseudonym), a villager from Weicuo Village, Dongjiao Town, Xiuyu District, Putian City, shared with reporters that there are still workers in Xinda Footwear Co., Ltd., but information obtained from employees indicates that existing orders can only be sustained for a few days. The crucial issue is that the owner, Tang Qingyuan, and his family are currently unreachable.
Wang Hao mentioned that not only is the company unable to locate the owner, but the owner’s family, who resides in their village, is also untraceable. Villagers have visited their residence, only to find it locked with no sign of the owner’s family. Word has it that the owner’s family has fled abroad, but this information lacks official confirmation. Calls made by reporters to Xinda Footwear Co., Ltd. remain unanswered.
The disappearance of the owner and his family has caused a stir due to Chairman Tang Qingyuan having collected funds from villagers for many years, with an estimated total exceeding 400 million yuan.
Wang Hao revealed that 80% of the villagers in his village have deposited all their savings in Xinda Footwear Co., treating it like a bank where funds can be accessed for three days each month. A designated person collects money from the afternoon until 9 p.m. at the company, with sums ranging from tens of thousands to millions or even tens of millions of yuan.
He further disclosed that he and his family have entrusted all their money to Xinda, and just last month, he deposited 1.1 million yuan in cash. In return, Xinda issued him a promissory note.
According to Wang Hao’s estimates, many residents in his village and surrounding areas have placed their trust in the well-established enterprise of nearly 30 years, depositing their money for higher interest rates than banks offer.
Wang Hao provided the reporter with a copy of the promissory note received when he and his family made their deposits. The note displayed the full name, address, phone, and email information of Xinda Footwear Co., Ltd., along with the borrowed amount, calculated monthly interest rate at 1.2%, and Tang Qingyuan as the borrower.
After receiving news of the owner’s disappearance, the villagers panicked. For several consecutive days, one to two hundred villagers gathered at the company’s entrance. They also approached the district government, but to no avail.
The villagers have submitted a petition requesting an investigation into suspected fundraising fraud and urging urgent action. They have initiated a joint signature campaign to address the matter.