According to the WeChat public account of Hongtao Stock on June 17th, Chairman Liu Nianxin of Hongtao Group released an open letter. In the letter, it was mentioned that "since the beginning of spring in 2024, the crisis of Hongtao Group has escalated again, encountering malicious short selling of block orders, facing the risk of delisting and other potential risks. In order to meet the funding needs and quick financing needs of the company's development, my family and I have provided financial assistance to the company several times, with a total of about 500 million yuan, and provided guarantees of more than 1 billion yuan. Most of the funds I used to provide financial assistance to Hongtao Group came from stock pledges and property mortgages. I pledged Hongtao's stocks at Guosen Securities to help Hongtao, but because Hongtao was unable to repay the loan in time, I could not repurchase the stocks according to the stock pledge repurchase trading agreement. The pledge right holder Guosen Securities forced me to close out the stocks of the default part according to the agreement. As for Hongtao's obligation to pay for the purchase of property in Shenzhen Fangda Property Development Co., Ltd., I provided guarantee and assurance. However, because Hongtao was unable to pay according to the contract, I faced the risk of being forced to execute the 48,929,745 shares of Hongtao pledged at Guosen Securities. For Hongtao, I am on the brink of bankruptcy. "