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Qiu Yafu, the actual controller of Ruyi Group (002193), was once a prominent figure in China's textile industry and was known as the "King of Wool Spinning". However, with the outbreak of the debt crisis, creditors could not wait any longer and rights protection actions such as equity freezing, litigation and auction followed one after another.

The Alibaba auction platform shows that from 16:00 on July 30, 2024 to 16:00 on July 31, the bankruptcy assets of Xinjiang Ruyi Fashion Textile Technology Co., Ltd., Xinjiang Ruyi Textile Enterprise Management Co., Ltd., Xinjiang Ruyi Textile Garment Co., Ltd., and Xinjiang Luyi Textile Technology Co., Ltd. (hereinafter collectively referred to as "Ruyi Fashion Company and other four companies") will be auctioned with a starting price of 304 million yuan.

There was only one interested bidder in this auction. At the end of the auction, a mysterious bidder with the number "M1098" won the bankrupt assets of four companies including Ruyi Fashion Company at the starting price of 304 million yuan.

The auction platform shows that this auction was commissioned by the administrator of the substantive merger bankruptcy liquidation case of Xinjiang Ruyi Fashion Textile Technology Co., Ltd. and Xinjiang Ruyi Textile Enterprise Management Co., Ltd., and the administrator of the substantive merger bankruptcy reorganization case of Xinjiang Ruyi Textile Garment Co., Ltd. and Xinjiang Luyi Textile Technology Co., Ltd.

The objects of this auction are the physical assets and intangible assets owned by Ruyi Fashion Company and other four companies, including inventory, buildings and structures, equipment, projects under construction, land use rights, etc.

By penetrating the equity, it can be found that the actual controllers of the above-mentioned auction targets, including Ruyi Fashion Company, are all Qiu Yafu.

According to data, Qiu Yafu was once known as the "King of Wool Textiles". His subsidiary Shandong Ruyi Technology Group Co., Ltd. (hereinafter referred to as "Ruyi Technology") was once known as one of the top ten most competitive companies in China's wool textile industry. At its peak, it had four listed companies, namely A-share Ruyi Group (002193), Hong Kong-listed company Trinity Holdings (00891.HK), SMCP Group (FR0013214145) listed on the Euronext Paris, and Japan's Rena Group (delisted).

However, since 2020, Ruyi Technology's debt crisis has begun to emerge. Tianyancha shows that as of now, Ruyi Technology has been listed as a dishonest executor 26 times, and all of them have not been performed; in 2024, Ruyi Technology was listed as a debtor 19 times, with a total amount of 3.24 billion yuan.

According to the "Penalty Notice" disclosed by Ruyi Group in January 2024, Ruyi Technology had engaged in fictitious procurement business to occupy the funds of listed companies, and failed to disclose related transactions in a timely manner. The Shandong Securities Regulatory Bureau decided to take a 10-year market ban against the party involved, Qiu Yafu, a 5-year market ban against the party involved, Zhang Yiying, and a 3-year market ban against the party involved, Du Yuanshu.

At the same time, Ruyi Group's operations were also affected, with a loss of 831 million yuan in 2022 and 625 million yuan in 2023. On July 2 this year, Ruyi Group received a "Civil Ruling" from the Pingyang Court of Wenzhou, approving the reorganization plan of its holding subsidiary Wenzhou Zhuangji Clothing Co., Ltd.

Since the beginning of this year, Ruyi Technology's joint actor Shandong Ruyi Wool Textile Group Co., Ltd. has passively reduced its holdings of Ruyi Group shares due to judicial enforcement many times. The first quarter report of 2024 shows that as of the end of the reporting period, Ruyi Technology and its joint actors held a total of 19.59% of Ruyi Group's equity, and all of them were not pledged, marked or frozen.

According to the voting results of the "Draft Plan for Substantial Merger and Bankruptcy Reorganization of Xinjiang Ruyi Fashion Textile Technology Co., Ltd. and Xinjiang Ruyi Textile Enterprise Management Co., Ltd." in April this year, there were 115 creditors participating in the voting of the ordinary creditor group with a debt of 2.25 billion yuan, and 11 creditors participating in the voting of the priority creditor group with a total debt of 581 million yuan.

The auction information shows that the bidders participating in this auction are deemed to have recognized the "Draft Plan for Substantial Merger and Bankruptcy Reorganization of Xinjiang Ruyi Textile and Garment Co., Ltd. and Xinjiang Luyi Textile Technology Co., Ltd." approved by the People's Court. The final successful buyer of the assets is the reorganization investor of Ruyi Garment Co., Ltd. and Luyi Technology Co., Ltd., and should perform the obligations of the reorganization investor in accordance with the "Reorganization Plan" approved by the People's Court.