Shenzhen investment company Guangdong Province Key Holding Group (Key Holding Group) Chairman Lin Chunhao recently issued an open letter to the company’s group stating that he had failed in his investments and has fled overseas. It is highly likely that the investors’ money will be lost without a trace.
According to a report by Jiemian News on April 30th, on April 16th, Lin Chunhao sent a “Letter of Resignation” in the corporate WeChat group. The letter stated, “We have taken a total of 1.34 billion yuan from customers, but this money has been spent in operations, and I have personally lost 720 million yuan. I am now in a difficult situation and have already fled to a foreign country. I hope you will go after those who owe money and recover the debts.”
Reported by Economic Observer on April 30th, several investors of Key Holding Group revealed that the affected investors are mainly located in Shenzhen, Zhongshan, Guangzhou, Foshan, and other areas, most of whom purchased the company’s products through introductions from relatives and friends. Some investors initially participated in financial investment courses offered by the company and were later persuaded by Key Holding Group salespeople to invest in other high-yield projects. Others were introduced by relatives directly to purchase products with an expected annual return of 6% to 9%.
One investor disclosed that the investment principal for Key Holding products increased in increments of 10,000 yuan, with investment periods ranging from 3 months to 36 months and expected annual returns ranging from 6% to 9%. The products stipulate fixed interest distributions on the 25th of each month.
Several investors stated that their individual investment amounts varied from 100,000 yuan to several hundred thousand yuan. Some investors put in 700,000 yuan, but after just two months of investment, the platform collapsed, making it emotionally hard to accept.
Upon learning about Key Holding Group’s collapse, investors realized that they are likely to lose everything and are now trying to get salespeople to refund their commissions, but many salespeople are currently unreachable.
Economic Observer mentioned that on April 28th, at the company address of Key Holding Group on the 9th floor of Xiaolan Financial Center in Zhongshan City, the company’s sign was still there, but the doors were locked, and there was no one in the office. Employees from nearby companies revealed that no one had shown up for work at this company for several days.
Additionally, according to a report from China’s Life Strong Flyer, Key Holding Group engaged in severe illegal operations starting from the third quarter of 2024. To sustain operations, they employed a “robbing Peter to pay Paul” method, introducing high-yield financial products like the “Stable Profit Plan” with an annual return of 12% to attract new funds for paying off old debts. Furthermore, the fund flow was chaotic, seemingly used to cover historical losses or transfer assets. In private equity business, the company did not follow regulations in determining qualified investors, and also promised high returns to employees and relatives, suspected of illegal fundraising.
Moreover, Key Holding Group had been engaging in long-term false advertising. Their sales staff promoted investment projects as being operated by “state-owned enterprises”, and related contracts even bore the label of “state-owned enterprise” to reassure investors. However, investigations revealed that these so-called “state-owned enterprises” were fabricated through false equity relationships. Tianyan Check showed that the project company had frequent changes in shareholders, confusing investors through complex operations, with one company involved even listed under abnormal operations.
On April 29th, related institutions stated that Key Holding Group had been investigated.
According to public information provided by Lin Chunhao during a media interview in 2022, Key Holding Group is a company involved in various businesses such as industry layout, financial investment, and internet technology.