Part 4/8:
By 2023, the deterioration of Sunning’s finances was clear; they reported monumental debt levels and net losses among publicly listed companies. Consequently, Sunning's affiliated companies began declaring bankruptcy across China, shedding light on a larger issue: the broader economic downturn affecting many businesses.
Insiders suggest that Sunning’s failure was not sudden but rather a buildup of reckless financial strategies that leveraged debt irresponsibly. Transitioning its cash flow manipulation tactics from offline to online platforms proved catastrophic as the economic landscape transformed under rising consumer discontent.