Recent Collapse of Chinese Fresh Food E-commerce Platform “DC Agriculture”
China’s fresh food e-commerce platform “DC Agriculture” has recently experienced a sudden collapse, with the chairman suspected of fleeing with funds amounting to billions of yuan, leaving over tens of thousands of investors facing losses. The platform, once strongly supported by the government and praised by state media just two weeks ago, is now deserted, causing a large number of victims to gather at its headquarters in Shenzhen seeking justice while facing suppression from local authorities. The situation continues to escalate.
On September 7th, the DC Agriculture platform suddenly collapsed, and operational centers in cities such as Chongqing, Chengdu, Wuhan, Nanchang, among others, were found empty overnight.
Videos circulated online showed warehouses in Chongqing being emptied, with numerous merchants gathering to demand payment for their goods. It is reported that merchants in Chongqing alone are owed over 200 million yuan in payments.
Since September 5th, a large number of victims have gathered at the DC Agriculture headquarters in Shenzhen to demand justice, but local authorities have been accused of showing a passive attitude and delaying the handling of the case. Rumors online suggest that Chairman Huang Jingao has fled to Indonesia, taking away a substantial amount of investors’ funds.
According to preliminary estimates by victims, senior executives of DC Agriculture have taken away around 10 billion yuan in pre-sale platform funds. The pre-sale projects of the platform span nationwide, with over 8,000 investors currently affected, nearly reaching a scale of tens of thousands of people. Victims from Henan revealed that “the amount from individual consumers alone has already reached several billion.”
Investment amounts range significantly, from tens of thousands to tens of millions of yuan. Victims from Chengde, Hebei stated, “The amount registered in our form probably exceeds over 1 billion… with another high amount of 20 million.”
Many investors invested through credit card transfers and bank loans, facing severe debt crises now.
The platform’s operation model involved investors pre-ordering agricultural products, with the platform selling on their behalf and returning the principal and profit. During normal operation, a 5,000 yuan investment would yield around 300 yuan in profit in 30 days, with a relatively attractive return rate.
However, in August, the platform significantly increased its profit rate, laying the groundwork for the collapse. A victim from Henan recalled, “In August, they suddenly raised the profit rate, turning a 5,000 yuan monthly profit into over 1,000, and by the time we wanted to withdraw, it was too late.”
“Since the high profits began, I had a feeling they were planning to take the last wave of money and flee,” the victim stated, highlighting the super high profit rate as a final means of accumulating money before the platform’s collapse.
Victims reported that relevant government departments have taken a repressive stance on the matter, not only refusing to file cases but also issuing “soft threats” to investors seeking justice. A victim from Henan revealed that “once you report to the police, the local police station and town government officials will contact you, collecting your family and work information to prevent you from petitioning.”
“All the reports in the media are suppressing this issue,” as government departments fear that a large-scale gathering for justice would affect social stability, leading to information censorship on the event.
Currently, some investors plan to go to Shenzhen for collective justice, hoping to push for issue resolution through public pressure. However, facing massive losses and government oppression, many victims feel hopeless, with “some inevitably resorting to extreme actions,” causing deep concerns about the aftermath of the entire incident.
This event not only severely impacts direct investors but may also have a devastating chain reaction on the entire agricultural supply chain industry. Victims analyzed, “Whether it was premeditated from the start or a real breakdown of the financial chain, once this bomb exploded, all other supply chains would be affected.”
DC Agriculture had previously signed large procurement agreements with numerous farmers and even signed billion-yuan sales contracts in August, leaving these farmers also as victims of the collapse.
Searches by reporters on the Epoch Times website revealed that DC Agriculture had received publicity from the Shenzhen government and endorsements from various local governments.
On August 18th, Shenzhen TV’s “Shen Vision News” aired a special report on “China’s Top 500 Agricultural Enterprises in 2024,” featuring local enterprises in Shenzhen, where DC Agriculture was lauded as a Shenzhen company that had been selected for three consecutive years as one of the “Top 500 Agricultural Enterprises in China.” The group’s vice chairman, Zhao Xuesheng, had even been interviewed by the official TV station.
Concurrently, the Shenzhen city’s Leading Group Office for Pairing Assistance and Cooperation released the list of “Typical Cases (Enterprises) for Supporting Rural Revitalization through Consumption Assistance in the City in 2024,” in which DC Agriculture was praised as a typical example of an enterprise contributing to rural revitalization through consumption assistance in 2024.
Reports showed that DC Agriculture had collaborated with state-owned enterprises in Lichuan, Jizhou, Yinchuan, and Dezhou to jointly build order-based agricultural industrial parks, while also investing in constructing “Digital Agricultural Product Trading Centers” in key agricultural areas.
Sohu.com reported that on May 1st, Dr. Gwenn Ramokgopa, the Chief Financial Officer of South Africa’s ANC party, along with a delegation, visited the DC Agriculture Group’s headquarters in Shenzhen for cooperation and inspection. Chairman Huang Jingao of DC Agriculture and senior company executives welcomed the delegation and signed a formal cooperation agreement with the visiting South African Ivory Agriculture Company.
According to DC Agriculture’s official website, Huang Jingao, born in May 1977 in Hubei, founded Shenzhen Dianchou Internet Agriculture Holdings Co., Ltd. in 2014, serving as chairman. The company had claimed to be a major digital agricultural supply chain service provider in China, not only receiving official honors but also government subsidies.
Reporters tried to contact Chairman Huang Jingao of DC Agriculture but were unsuccessful. Currently, personal information about Huang Jingao on DC Agriculture’s official website has been deleted.