Founder of Zhu Fan admits capital break

In the past week, the follow-up impact of the scandal caused by the "dark horse" company Zhufaner in the home decoration industry is still fermenting. Hundreds of renovation sites in Beijing and Shanghai are still generally suspended. With the help of the government and industry associations, renovation owners, suppliers, Zhufaner management and other parties have conducted multiple rounds of communication, hoping to jointly promote the resumption of work on the sites. From May 27 to June 3, during multiple rounds of communication, Zhufaner's founder and legal representative Liu Xianran told the renovation owners that he had never misappropriated company assets. He is willing to take out his personal assets for the company's current situation, but his personal bank account only has 100,000 yuan left. In a recent communication, Liu Xianran admitted that the company's capital chain has been broken and there is no money in the account. He stated that the main reason for the company's cash crisis was the "state subsidy policy" that started in the second half of last year. Many renovation owners do not believe Liu Xianran's statement. They question the reasonableness of his statement and demand that Zhufaner company publicly disclose detailed financial records related to advance payments from owners, renovation loans, funds flow, misappropriation of renovation loans, company's assets and liabilities, executive salaries, and other key financial information.