What was the reason for the failure of Jinyi Group CEO Chen Jinyi?

In 1992, Chen Jinyi became famous for photographing 6 state-owned and collective stores in Huangpu District, Shanghai. In 2000, he ranked 35th on Forbes' list of mainland China's richest people with a net worth of US$80 million. In 2003, Chen Jinyi decided to transform his main business, stop investing in the beverage industry that had become a trend, and focus on heavy oil emulsification known as "water to oil". In 2005, Chen Jinyi was listed as the "Zhejiang Economic Figure of the Year" for his technological innovation in investing in the "Water to Oil" project.

But in July 2006, it was suddenly revealed that Chen Jinyi owed more than 30 million yuan in debt, and the company seemed to be in dire straits. At that time, when Chen Jinyi explained to this reporter the reason why he was temporarily unable to repay the debt, he said that the company was The "emulsified oil" scientific research project being carried out requires capital investment. "In recent years, the long-term high investment and almost no output has caused problems in the corporate capital chain." Since Chen Jinyi's "water to oil" base in Haiyan was seized, its production has been Without continuous supply, Hangzhou United Meat Group, which used to use emulsified oil, suspended cooperation with him. As the "water-to-oil" technology has not yet been certified by more authoritative departments, its prospects are still unclear.