Wang Yinda, the former chairman of Daneng Electrical Equipment Group in Cixi city, Zhejiang province, now sits hunched on a worn sofa in his rented office, burdened by a staggering 400 million yuan (57 million USD) in debt. A cracked handle on his water cup, mended with red thread, symbolizes his current plight. "I don't recall the exact figures," the 50-year-old said bitterly, "I only know I owe banks 300 million and suppliers 100 million yuan."

Wang Yinda stands in his abandoned factory in Zhejiang province, China in 2019. *iFeng*

Born in 1972, Wang described himself as "born with a silver spoon," his father a prominent millionaire in Zhejiang. After military service, Wang launched his business in 1997 with two million yuan from his father, focusing on small home appliances such as electric fans and heaters.

Adopting the prevalent "family company" model of the era, Wang appointed his wife as chief financial officer, while her brothers managed all raw material procurement. This structure initially brought immense success. Within 10 years, Wang's assets multiplied 200 times. By 2007, his company boasted a net profit of 400 million yuan. "Money came too fast, making me complacent," Wang recalled his peak. "I splurged on luxury cars and only wore tailored designer clothes from Italy." By 2012, his Daneng Industrial Park spanned 350,000 square meters and employed over 1,000 workers, making it the second largest in the town.

The first signs of trouble emerged in 2013, when the government's rural home appliance price support policy ended. This led to a sudden drop in demand and a massive accumulation of unsold inventory. It was during this downturn that the critical flaws of his family-run model became evident. "My wife's brothers took commissions, allowing low-quality components to enter the factory," the former billionaire remembered. "Despite knowing about the supply chain problems, I was too deferential and could not convince my wife to change personnel."

As banks tightened credit and the company struggled, Wang Yinda made an irreparable personal mistake: an extramarital affair. When the affair came to light, his wife filed for divorce in 8/2015. The Daneng empire quickly crumbled. His wife, who held complete financial authority, dissolved the accounting department, taking all ledgers, seals, and cash, leaving her husband with only 2,000 yuan (about 300 USD).

"I knew I was isolated by my wife's family, but I blindly trusted them, believing they were family," Wang stated bitterly. Upon taking control, he was shocked to discover that the financial department, under his wife's management, had secretly secured high-interest loans under the group's name, causing the debt to swell beyond control. The supply chain collapsed, and the factory ceased operations. Wang Yinda was later sentenced to 3 years of probation for charges related to bad bank debts. In 3/2019, his 20-year endeavor was auctioned off by the court. The factory and nearly 800 million yuan (115 million USD) in capital vanished, leading to Wang's official bankruptcy. He was given three months to vacate the premises.

To date, no "miracle" or spectacular comeback has materialized for the former billionaire. Once a magnate who spent money without hesitation, Wang Yinda sold all his luxury cars and a Patek Philippe watch worth one million yuan to repay his debts. Now in his 50s, the former "king of electrical equipment" wears cheap clothes and lives a difficult life in a small rented room. He is diligently relearning e-commerce from scratch and works as a strategic consultant for small businesses, saving every penny in his ongoing effort to repay the 400 million yuan debt.

Earlier this year, Wang Yinda's story gained renewed attention from Chinese media and business circles. It is now widely discussed as a cautionary tale, warning startups about the critical risks of the "family company" model and the devastating erosion of trust stemming from personal mistakes. Wang Yinda, for his part, accepts responsibility. "That is the price of arrogance, unreasonable deference, and moral mistakes," he admitted. "Now, only when I pay off all my debts can I hope to live a respectable life again."

Minh Phuong (*Sohu, iFeng*)