(Yicai Global) Aug. 20 -- The China business ofAustralia-based real estate agencyAusin Group hasground to a standstill forfinancial reasons,andthis has impacted Chinese investors who purchased Australian properties via the firm.

"Though Ausin Group hasn't announced that it willshut downits Chinabusiness,actual operation of the offices in Shenzhen, Beijing and Shanghaiison hold rightnow," anAusin ChinamanagertoldYicai Global.

Formed in 1996and based in Sydney, Ausin Group providesprofessional overseas real estate, immigration and other services for high-end customers. It has forged long-term alliances with Lend Lease,Rose Groupandmore than 30otherAustralian property developers, public information shows.

Yicai Globalcalled Ausin Group'sChinese hotlineon August 17 butthe call wentunanswered.

"The management team oftheChinese branch had noticed that several customers defaulted and theirproperties were confiscated by local developersbecause ofunsettled final payment by the company," a senior executive of Ausin China toldYicai Global, adding that he learned that there was only CNY10,000(USD1,460)left on the accountbooksafter inquiringwiththecompany's financial departmentat itsheadquarters.

"We were very shocked. We hadrealized there was a problem with the company's fundsbynow. We were told that the company has been in debt for several years. Our boss said the company has lost hundreds of millions ofyuanin the past few years, including customer's housing fundsand business tour deposits,"aseniorcompanyexecutivetoldYicai Global."The company's financial position has never been transparent. They haven't informed us of the amounts receivable over a year and costs, and financial accounts are also very unclear. We just knew the company has been expanding since last year, especially in second- and third-tier cities, but didn't expect that the company would have continuing losses."

The company currently has a total deficit of more than CNY300 million(USD43.75 million),Ausin China headquarters revealed atitspublic national staff meeting.

"These customerswere not the only ones tosuffer losses;our employeeshavealso lost millions ofyuan,"the senior executivetold Yicai Global."In 2016, the company declaredthe start ofits listing plan and raised funds from within topool alisting fund,raisingCNY1 million at a minimum, butup toCNY3 million. Eventually, the total fundsraisedtopped CNY40 million, but now the money has disappeared."

Harry Jin, who is said to be the general manager of Ausin China, is the person at theeye of thestormswirling aroundAusin China's capitalimplosion.

Ausin Group mainly sellsapartments and villas in Australia, New Zealand, the US and UK, public information shows. When its business was good several years ago, it sold3,000 apartments and villas overseas a year.Becauseof a rise in stamp duty intherecent two years,however,its saleshavedropped slightly but it could sell over 1,000 houses. Taking Australian house properties as an example, agencies collect commissions of about 2percentin mosthome transactions and 5percentinafew house transactions.

Ausin Group'sAustraliaheadquartershas rebuffedclaims it shouldassumethe liabilityforlosses by itsclients andstaff.Thereis evidence of fraud and the matter has been reported to Australian authorities, repliedJoseph Zaja, Ausin Groupfounder andchief executive,adding the firmis working closely with vendors affected.

The headquarters of Ausin Group has sent a letter to its developers worldwide and denied its connection with its Chinesenamesakeand refused to compensatethelossesofChina-sideclients.

"It is important to understand we are separate entities, and Ausin Group has sent Harry a 'cease and desist'to use the trademark name, Ausin,"Zaja told Australian media, addingthatits domestic businessremained unaffected.

Ausin China's business is operated by Shenzhen Ausin Investment Consulting, a company registered in Shenzhen,Yicai Globalfound from a search ofpublicrecords. As a directly-owned branch of Ausin Group, Ausin Investmentwas founded in 2008 with registered capital of CNY8.2 million andHarry Jin listed as its legal representative.

Ausin Investment just obtaineditsbusiness license this March. Jin is a founder of Ausin Group,Zaja stated. Jin holdsa 50 percent stake in Ausin Group, anemployeesaid.

The company has 26 offices and over 500 employees in Australia, China, India, the UK, the US and New Zealand, public information shows. Ausin China'sstaffare mainly responsible for sales, finance, after-sale services, leasing and immigration.

Yicai Globalreached Jin via phone. Hesaidhe is still in China. As of press time,hehadnotcommented onAusin China's cash crunch. Jin is meeting with 50to60 investors in Beijing, an Ausin Chinaworkersaid.

"He mustbeon the verge ofdespair," an Ausin China executive toldYicai Global.

Editor: Ben Armour