Skip to content
Brand AI

Huishan

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

Back to profile1 entries

  1. 2017

    Huishan Dairy Shares Plunge 85% in a Day as RMB 26.7 Billion Debt Crisis Erupts

    On March 24, 2017, Hong Kong-listed Huishan Dairy's shares at one point plunged more than 85% to 90%, then trading was suspended, shocking the market. The company later disclosed that as of March 31, 2017, group liabilities were about RMB 26.73 billion and assets about RMB 26.22 billion, leaving it insolvent. The crisis exposed problems such as high-leverage expansion and misappropriation of funds. Chairman Yang Kai was ordered to bear joint and several liability for RMB 13 million in loans and interest owed by his Shenyang Dairy and Liaoning Huishan Dairy Group to Panjin Wanxinhui; after failing to perform, he was placed by a court on the list of dishonest judgment debtors ('laolai'), with restrictions on taking soft-sleeper trains and high consumption. Huishan Dairy delisted in 2019; in November 2020 the Shenyang Intermediate People's Court approved restructuring plans for 83 Huishan Dairy companies, Guangzhou Yuexiu Group took over the restructuring, and the debt crisis was ultimately resolved. Yang Kai went from Liaoning's richest person to a dishonest judgment debtor.

    Source