The Waves Caused by the "Chengxing Case"
In 2019, the case of Luo Jing (the "Chengxing series" fraud case) caused a huge uproar in the capital market. After the Luo Jing case was exposed, Noah's wealth of 3.5 billion also followed suit. Subsequently, the case continued to ferment, with the involved amount skyrocketing to 30 billion yuan. The case was also made a first instance judgment by the Second Intermediate People's Court of Shanghai in 2022, which found that Luo Jing was sentenced to life imprisonment for the crime of contract fraud and bribery of non-state workers.
The judgment also determined that companies such as JD.com and Suning, as well as their employees, were not aware of the fraudulent behavior of the "Chengxing Group", and the relevant cooperation contracts, seals, and materials were all forged. In addition, Fang Jianhua, a financing staff member of Noah, received over 2 million yuan in bribes from the "Chengxing Group", providing convenience for Chengxing Company to engage in fraud in business docking, follow-up investigations, and other aspects.
However, JD.com, as the victim of the "Chengxing Group" fraud case, was unexpectedly implicated as one of the co defendants. It is reported that in this lawsuit, Gefei Company demands that JD, Chengxing Holdings, Zhongcheng Industry, Suzhou Shengjun and other companies repay all the losses identified in the "Chengxing Series" case of 3.5 billion yuan.
Previously, CCTV reported that several legal professionals stated that the situation of Noah Wealth's debt collection from JD.com is not optimistic. One reason is that the first instance criminal case of Luo Jing, the actual prosecutor of the "Chengxing Group", has clearly determined that the relevant contract seals are all forged, and the so-called "JD employees" are also played by employees of the "Chengxing Group". The second issue is that Noah Wealth has significant loopholes in its internal management, causing its employees to engage in internal and external cooperation, resulting in significant losses.
Today, JD Group finally issued a statement titled "Statement on Noah Wealth's Malicious Prosecution of JD, Misleading Investors and the Public.". The statement stated that recently, the "Chengxing case" has attracted widespread media and public attention. JD, as an uninformed victim, was involved in a four-year malicious lawsuit, causing significant damage to the company's reputation and rights.
In the process of contract fraud in Chengxing Group, Chengxing Group companies easily deceived Noah Wealth, known as the "global comprehensive financial platform," and its Gefei assets by using fake JD official seals, fake JD employees, fake JD systems, and false transaction data, and obtained huge financing from Gefei, which directly caused explosions. Faced with more than two years of ongoing fraud, Gefei Asset's due diligence work has shown obvious deficiencies, and there are huge loopholes in investment and financing management. Executive Fang Jianhua accepted a huge bribe from Chengxing (which has been sentenced in the first trial), causing significant losses to investors and failing to fulfill corresponding responsibilities and obligations to investors.
According to public information, Noah Wealth has experienced more than ten similar incidents in recent years, facing problems in the redemption of billions of funds, and has repeatedly concealed information from investors. It has also been warned and punished by regulatory authorities, indicating its long-term serious risk control deficiencies. At present, the criminal case related to the Chengxing case has been sentenced in the first instance, and the actual controller of Chengxing, Luo Jing, and other fraud suspects have been sentenced to prison. Noah Wealth and Gefei Asset still disregard the trust of investors, refuse to examine their internal management issues, and maliciously launch a ridiculous and high amount lawsuit against third-party JD.com, attempting to confuse the public, continue to mislead investors and the general public, shift responsibility, and seek a "scapegoat" for themselves. We believe that the court will make a fair judgment on this case. I hope that Noah Wealth and Gefei Asset will face their own problems, show sincerity and take corrective measures, especially to enhance the most basic integrity and literacy as a wealth management company, and truly protect the rights and interests of investors.

Wang Sicong also has the latest variables coming. According to Pengpai News, after Wang Sicong met with the Secretary of the Tai'an Municipal Party Committee to sign a 3.7 billion yuan cultural and tourism project, several media outlets cited promotional materials saying that "Beijing Huanju is helping Dewu carry out offline store landing work.". The response from the property side is that a third party is not authorized to carry out store landing business.
According to the news released by Beijing Huanju Commercial Management Co., Ltd. on its official WeChat official account on November 27, Beijing Huanju Commercial Management Co., Ltd. held a signing ceremony with Tai'an Municipal Government on the cultural tourism fitness center project. Wang Sicong, as the chairman of Beijing Huanju Commercial Management Co., Ltd., was present at the signing ceremony.
According to the introduction of Beijing Huanju, currently Beijing Huanju Commercial Management Co., Ltd. has become the only trend entertainment and scene operation company in China that focuses on immersive experiences. It has managed assets of over 6 billion yuan, laid out more than 70 projects, and has over 100 offline single stores; The business formats cover cultural and tourism, commerce, experiential consumption, and night entertainment, among others. The established formats include bars, catering, zoos, etc., and we are assisting Dewu in the implementation of offline stores. Beijing Huanju announced that it plans to develop the cultural and tourism fitness center project into a landmark destination for skiing throughout the four seasons in North China.
According to the official website of Tai'an Tourism Economic Development Zone, Mount Taishan Culture and Tourism Fitness Center has a total land area of about 500 mu and a total floor area of about 355000 square meters, mainly including stadiums, gymnasiums, swimming pools, and fitness centers for all (three in one event). The total investment of the project is about 3.7 billion yuan. This project breaks the traditional layout model of sports centers and introduces various formats such as commerce, catering, entertainment, culture, sports, and exhibitions to create a new sports and cultural industry complex. According to the information released by the Office of the People's Government of Tai'an City in October 2021, the main construction of the Three Pavilions has been completed.