Why became a "deadbeat"? Li Houlin, founder of "I Do" diamond rings | Xi Li | Information | Li Houlin

The phrase "Yes, I Do" at the wedding marks the beginning of the exchange of diamond rings between the groom and bride. The diamond ring brand "I Do", which was named after it, is also popular among newcomers, but its founder has now staged "No, I won't pay".

According to information from China Execution Information Disclosure Network, recently, Li Houlin, the founder of the "I Do" brand, was listed as a dishonest debtor by the People's Court of Binhai New Area in Tianjin due to the debtor's failure to fulfill all obligations.

According to relevant legal documents, the defendant Beijing Hengxin Kate Economic and Trade Co., Ltd. should pay the plaintiff Zhongli International Financial Leasing Co., Ltd. more than 2.62 million yuan in unpaid rent and liquidated damages; Defendants Li Houlin and Hengxin Zhenglong Economic and Trade Co., Ltd. shall bear joint and several liability for the above-mentioned monetary payment obligations.

Why has this former "diamond tycoon" become a "deadbeat" now?

Screenshot of China Executive Information Disclosure Network.

He worked in gold mines and founded "IDo"

According to Global People, Li Houlin was a ruthless person upon his debut. Before starting his diamond business, he was a gold mine manager at Huaneng Group. At an internal sharing meeting within the company, he mentioned his experience when he first joined and exclaimed, "In order to save costs for the company, I always carry a cool mat and sleep on the floor during summer business trips.".

In 1999, Li Houlin, who had made money, went overseas to start his own business and opened a Hengxin diamond specialty store in the Oriental Plaza of Wangfujing, Beijing.

Although his business grew bigger and bigger, at that time, Li Houlin was widely talked about for his various "scandals" with entertainment industry actresses. In 2004, Li Houlin and the host Li Xiang got a high-profile engagement after meeting for a month, which caught people's attention. However, this marriage only lasted for a year.

In 2006, Li Houlin keenly sensed business opportunities: over 76% of people in China bought diamonds for marriage, and every year, 10 million new couples enter the marriage hall. So, the "I Do" brand emerged.

The diamond industry has never lacked marketing, and I Do is no exception. Over the past decade since the establishment of the brand, "I Do" has tried various entertainment marketing models such as entertainment marketing, emotional marketing, and art marketing. Whether it is in movies, TV dramas, or celebrity weddings, "I Do" has appeared.

With the increasing popularity of "I Do", in 2016, Li Houlin stated in a public speech that according to third-party market research data, "I Do" has become the favorite Chinese diamond ring brand among the post-90s generation.

The company was in trouble and was reorganized.

Although "I Do" marketing has been thriving, in recent years, the company's business has not made rapid progress, but has instead fallen into operational difficulties.

In 2022, multiple "I Do" stores were rumored to have delayed employee salaries. An employee told the media that a large number of employees have been laid off.

Hengxin Xili Industrial Co., Ltd. is a subsidiary of "I Do" diamond rings. In February of this year, Everbright Securities also mentioned in its risk warning announcement about Hengxin Xili that according to information, there were a large number of employees leaving Hengxin Xili in 2022. As of the end of December 2022, the company has 241 employees, a decrease of 85.69% compared to the end of December 2021. Since the beginning of 2022, Hengxin Xili has received multiple labor arbitration enforcement documents due to unpaid employee wages.

At the same time, the number of "I Do" stores has also significantly decreased. The above announcement shows that in 2022, Hengxin Xili's sales stores decreased by 205, accounting for approximately 28.67% of the company's total number of stores at the end of 2021. According to the financial report, the number of stores at the end of 2021 was 715.

Under increasing business pressure, Hengxin Xili's performance has also experienced a significant decline. In the first half of 2022, Hengxin Xili achieved a revenue of 628 million yuan, a decrease of 41.99% compared to the same period last year; Realized a net profit of 7.0444 million yuan, a decrease of 88.62% compared to the same period last year.

Screenshot of Hengxin Xili's 2022 semi annual report.

Entering 2023, the "bad news" of Hengxin Xili is still ongoing.

On January 6, Hengxin Xili received the Pre reorganization Decision of the People's Court of Qushui County, Xizang Autonomous Region served by the court and entered the pre reorganization procedure. On January 13th, Hengxin Xili announced that the company and its legal representative were restricted from high consumption. A few days later, it issued another announcement stating that the company and its subsidiaries had their main bank accounts frozen due to multiple contract disputes.

Afterwards, Hengxin Xili was forced to suspend trading by the National Equities Exchange Corporation for failing to disclose its 2022 annual report on time. In July this year, Hengxin Xili and six subsidiaries were substantially merged and reorganized.

According to the China Execution Information Disclosure Network, there are currently multiple pieces of information about the executed persons in Hengxin Xili, and Hengxin Xili and Li Houlin have also received multiple consumer restriction orders.

Once extremely popular, now that the founder has become a "deadbeat" and the company is in a "stormy" situation, can "I Do" continue?