Executive Summary: Key Takeaways from the Brelax Scandal
– Brelax (倍轻松), hailed as China’s ‘smart massage first stock’, has experienced a catastrophic 900% plunge in net profit for 2025, transitioning from a modest gain to a loss of up to 1.05 billion RMB, following dual regulatory investigations into its founder. – Founder Ma Xuejun (马学军) faces consecutive立案告知书 (立案告知书) from the China Securities Regulatory Commission (CSRC) for涉嫌操纵证券市场 (涉嫌操纵证券市场) and disclosure violations, highlighting severe corporate governance failures amid allegations of fund misappropriation via ’employee loans’. – The company’s market capitalization has evaporated from a peak of 105 billion RMB to approximately 19 billion RMB, erasing over 85 billion RMB in value and underscoring the risks in China’s high-growth consumer tech sector fueled by aggressive marketing and capital inflows. – This case signals intensified regulatory scrutiny under CSRC Chairman易会满 (Yi Huiman), urging investors to reassess due diligence on founder credibility and financial transparency in Chinese equities, particularly in IPO-heavy segments like the STAR Market. – The downfall serves as a cautionary tale for global investors, emphasizing the need to balance growth narratives with fundamental analysis of cash flows and governance structures in emerging market plays.
As the Year of the Horse Approaches, Volatility Hits China’s Equity Markets
With Lunar New Year festivities on the horizon, China’s capital markets are embroiled in turbulence, exemplified by the dramatic collapse of Brelax (倍轻松), the once-celebrated smart massage first stock. This debacle centers on founder Ma Xuejun (马学军), who has been slapped with two立案告知书 (立案告知书) from the China Securities Regulatory Commission (CSRC) in quick succession—first for涉嫌信息披露违法违规 (涉嫌信息披露违法违规) in December 2025, and now for涉嫌操纵证券市场 (涉嫌操纵证券市场) in early 2026. The Brelax smart massage first stock saga reveals how charismatic leadership and compelling marketing can obscure deeper financial malfeasance, triggering a 900% profit plunge that has rattled both retail and institutional investors. As regulatory bodies tighten oversight, this incident underscores the precarious balance between innovation and integrity in China’s rapidly evolving equity landscape, where stories of rapid growth often mask underlying vulnerabilities. For international fund managers and corporate executives, understanding these dynamics is crucial for navigating the complexities of Chinese consumer tech investments.
The Dramatic Downfall: Brelax’s 900% Profit Plunge and Legal Quagmire
Dual Regulatory Investigations Shake Market Confidence
The unraveling of Brelax (倍轻松) began in late 2025 when founder Ma Xuejun (马学军) received his first立案告知书 (立案告知书) from the China Securities Regulatory Commission (CSRC) for alleged disclosure violations. Shockingly, within months, a second probe was launched for涉嫌操纵证券市场 (涉嫌操纵证券市场), making Ma a rare case of a company实控人 (实控人) facing dual CSRC actions in such a short span. According to Brelax’s公告 (公告), these investigations stem from activities that manipulated share prices and misled investors, contravening China’s Securities Law and STAR Market regulations. The immediate market reaction was brutal: Brelax’s stock price on the上海证券交易所 (Shanghai Stock Exchange) plummeted by over 60% in the weeks following the announcements, wiping out billions in市值 (市值) and leaving shareholders grappling with massive losses. This swift regulatory response reflects CSRC Chairman易会满 (Yi Huiman)’s intensified focus on market integrity, as seen in recent crackdowns on similar misconduct in sectors like fintech and新能源 (新能源). For a deeper look at CSRC enforcement trends, investors can refer to the official CSRC website for annual reports.
Financial Metrics: From Modest Gains to Catastrophic Losses
Brelax’s financial deterioration is starkly illustrated in its annual reports. In 2024, the company reported营收 (营收) of 10.85 billion RMB with a净利润 (净利润) of 102.5 million RMB, suggesting stable operations. However, 2025 results revealed a net loss ranging from 840 million to 1.05 billion RMB—a暴跌 (暴跌) of over 900% year-over-year. Key factors behind this collapse include: – Excessive marketing expenditures totaling 5.44 billion RMB in 2024, allocated to celebrity endorsements like肖战 (Xiao Zhan),易烊千玺 (Jackson Yee), and孙颖莎 (Sun Yingsha), as well as门店租金 (门店租金) and sales team incentives. – Alleged fund misappropriation by Ma Xuejun (马学军), who reportedly used ’employee借款 (借款)’ schemes to siphon approximately 80 million RMB from company coffers, alongside减持套现 (减持套现) activities that netted him nearly 100 million RMB in personal gains. – Declining product innovation amid heightened competition from rivals like小米 (Xiaomi) and华为 (Huawei), which have entered the smart health device space with more affordable offerings. This financial trajectory highlights how the Brelax smart massage first stock narrative, once buoyed by capital enthusiasm, has given way to harsh realities of poor cash management and governance lapses. Investors must now scrutinize such metrics beyond top-line growth, as emphasized by analysts from中国国际金融股份有限公司 (China International Capital Corporation Limited).
The Rise of Ma Xuejun: From Salesman to ‘Smart Massage First Man’
Early Career: A Journey from Rural Roots to Urban Ambition
Ma Xuejun’s (马学军) background reads like a classic rags-to-riches tale, albeit one now tainted by scandal. Hailing from山东聊城 (Shandong Liaocheng), he started as a农药推销员 (农药推销员) in the 1990s, leveraging his sales acumen to transition to roles at北京凯宾斯基饭店 (Beijing Kempinski Hotel) and中国台湾富豪食品有限公司 (Taiwan Fuhua Food Co., Ltd.). His move to深圳 (Shenzhen) in the mid-1990s proved pivotal, as he identified按摩 (按摩) as an industry ripe for disruption through standardization. In 1996, he co-founded倍轻松保健用品实业有限公司 (Brelax Healthcare Products Industrial Co., Ltd.), initially importing按摩 products before pivoting to自主研发 (自主研发). This early phase underscores Ma’s knack for identifying market gaps, but it also sowed the seeds for his later overreliance on营销 (营销) over substantive technological advancement. As one industry insider noted, ‘Ma’s story is a testament to how销售 (销售) prowess can propel startups, but without robust governance, it becomes a double-edged sword.’
Founding Brelax and Pioneering the Smart Massage Concept
In 2000, amidst深圳 (Shenzhen)’s push to become a高科技 (高科技) hub, Ma Xuejun (马学军) officially launched倍轻松 (Brelax) with a vision for ‘智能便携按摩仪 (智能便携按摩仪)’. At a time when global智能 (智能) technology was in its infancy, Ma’s concept of merging按摩 (按摩) with portability and rudimentary automation was innovative. His first product, an眼部按摩仪 (眼部按摩仪) targeting students and office workers, quickly gained traction in深圳华强北 (Shenzhen Huaqiangbei), capitalizing on rising consumer electronics demand. Ma’s strategy hinged on情感共鸣 (情感共鸣), a sales technique he honed early on, promising users ‘身、心、灵的净化升华 (身、心、灵的净化升华)’—a phrase reminiscent of spiritual wellness trends. However, this marketing-centric approach soon drew复制 (复制) from competitors, prompting Ma to double down on branding. By 2010, he had shifted focus to large-scale sponsorships, such as the上海世博会 (Shanghai World Expo), which bolstered Brelax’s profile domestically and internationally. This era cemented Ma’s reputation as a ‘营销大师 (营销大师)’, but it also revealed a growing disconnect between promotional hype and product研发 (研发) depth, a flaw that would later haunt the Brelax smart massage first stock phenomenon.
Marketing Mastery and Capital Influx: Fueling the Bubble
Strategic Branding and Global Expansion Tactics
Brelax’s ascent was heavily driven by Ma Xuejun’s (马学军) marketing genius, which aligned perfectly with capital trends in the 2010s. After gaining visibility at the上海世博会 (Shanghai World Expo), Ma pursued ‘出海 (出海)’ strategies, targeting日韩 (Japan and South Korea) and欧美 (Europe and America) markets. This move was calculated: –日韩 (Japan and South Korea) consumers exhibited higher acceptance of innovative health devices, allowing Brelax to premiumize its products and later leverage ‘foreign brand’ cachet back in China. – Global expansion attracted venture capital attention, with firms like深创投 (Shenzhen Capital Group) and丹麓资本 (Danlu Capital) investing, drawn to Brelax’s alignment with智能科技 (智能科技),新消费 (新消费), and大健康 (大健康) trends. Ma further amplified this with celebrity endorsements, signing顶流 (顶流) stars such as肖战 (Xiao Zhan) and易烊千玺 (Jackson Yee), whose influence drove sales but also inflated marketing costs. As阿里巴巴集团 (Alibaba Group) founder马云 (Jack Ma) popularized concepts like新零售 (新零售), Brelax rode the wave, positioning itself as a lifestyle brand rather than just a hardware maker. Yet, this emphasis on narrative over nuts-and-bolts innovation created a fragile foundation for the Brelax smart massage first stock, as later financials would expose. For insights on China’s consumer trends, reports from艾瑞咨询 (iResearch) provide useful data.
IPO on the STAR Market and Peak Valuation
In 2021, Brelax (倍轻松) achieved a milestone by listing on the上海证券交易所科创板 (Shanghai Stock Exchange STAR Market) as the ‘智能按摩第一股 (智能按摩第一股)’. This IPO capitalized on the科创板 (STAR Market)’s focus on硬科技 (硬科技), even though Brelax’s core was consumer electronics, not semiconductor-level innovation. The offering was oversubscribed, with市值 (市值) soaring to 105 billion RMB shortly after debut, fueled by media hype dubbing Ma Xuejun (马学军) the ‘智能按摩第一人 (智能按摩第一人)’. Key factors behind this peak included: – Strong VC/PE backing from世纪长河集团 (Century Long River Group) and康成亨投资 (Kang Chengheng Investment), which provided credibility and growth capital. – Favorable market conditions during the COVID-19 pandemic, which boosted demand for home health devices. – Narrative alignment with national policies promoting科技创新 (科技创新) and消费升级 (消费升级). However, cracks soon appeared: Ma began减持 (减持) shares, cashing out nearly 1 billion RMB, while simultaneously orchestrating ‘员工借款 (员工借款)’ schemes to divert company funds. This dual approach of front-end promotion and back-end financial manipulation epitomizes the risks that eventually triggered the smart massage first stock’s collapse, warning investors of similar patterns in other high-flying Chinese IPOs.
Unraveling the Scandal: Financial Misconduct and Governance Failures
Insider Activities and Fund Misappropriation Exposed
The core of Brelax’s downfall lies in Ma Xuejun’s (马学军) alleged financial misconduct, which came to light through detailed audits and CSRC scrutiny. Investigations revealed that from 2021 onward, Ma used ‘员工借款 (员工借款)’ as a cover to占用 (占用) approximately 80 million RMB in company funds, diverting resources meant for研发 (研发) and operations to personal accounts. Concurrently, he engaged in减持套现 (减持套现), selling significant stakes during periods of high股价 (股价) to pocket nearly 1 billion RMB. These actions violated multiple regulations under the中华人民共和国证券法 (Securities Law of the People’s Republic of China), including rules against利益输送 (利益输送) and操纵市场 (操纵市场). The impact was dire: Brelax’s cash reserves dwindled, forcing cuts to innovation budgets and leading to product stagnation. As one forensic accountant noted, ‘Such schemes often surface in财报 (财报) through discrepancies in应收账款 (应收账款) or unusual liability entries—red flags that diligent investors should monitor.’ For companies listed on the STAR Market, where governance standards are ostensibly higher, this case underscores the need for enhanced internal controls and independent board oversight.
Shareholder Impact and Erosion of Market Trust
The fallout from Brelax’s scandal has been devastating for stakeholders. Retail股民 (股民), many lured by the smart massage first stock promise, saw their investments evaporate as the share price crashed from over 100 RMB to below 20 RMB. Institutional investors, including pension funds and mutual funds that held Brelax shares, have faced write-downs and reputational damage. Key statistics highlight the damage: – Market capitalization fell from 105 billion RMB to 19 billion RMB, a loss of over 85 billion RMB. – Trading volumes spiked then plummeted, reflecting panic selling and lost confidence. – Credit ratings from agencies like中诚信国际 (CCXI) were downgraded, increasing borrowing costs for the company. This erosion of trust extends beyond Brelax, casting a shadow over the broader智能健康设备 (智能健康设备) sector in China. Investors are now reassessing similar stocks, such as those in the美容仪 (美容仪) or健身设备 (健身设备) categories, for governance risks. The Brelax smart massage first stock episode serves as a potent reminder that in emerging markets, equity analysis must incorporate rigorous checks on founder behavior and financial transparency, beyond mere growth metrics.
Broader Implications for Chinese Equity Markets and Investor Strategy
Regulatory Crackdown and Evolving Compliance Landscape
The Brelax case coincides with a broader regulatory tightening by the China Securities Regulatory Commission (CSRC) under Chairman易会满 (Yi Huiman). In recent years, the CSRC has increased scrutiny on信息披露 (信息披露) and市场操纵 (市场操纵), particularly for STAR Market listings, to curb speculative excesses and protect investors. For instance, new guidelines in 2025 emphasized real-time monitoring of实控人 (实控人) transactions and stricter penalties for violations. This environment means that companies like Brelax, which once thrived on loose oversight, now face heightened accountability. International investors should note that such probes may become more common, affecting sectors from科技 (科技) to消费 (消费). To stay informed, tracking CSRC announcements via their official portal is advisable, as these can signal shifts in enforcement priorities that impact portfolio decisions.
Forward-Looking Guidance for Market Participants
For fund managers and corporate executives navigating Chinese equities, the Brelax debacle offers critical lessons. Firstly, due diligence must extend beyond financial statements to include background checks on founders and assessments of corporate culture. Secondly, diversification across sectors and governance profiles can mitigate risks associated with individual stock blow-ups. Lastly, engaging with regulatory developments, such as the People’s Bank of China (中国人民银行) ‘s policies on金融稳定 (金融稳定), can provide context for market movements. As the smart massage first stock saga shows, China’s markets offer immense opportunity but require a balanced approach that weighs innovation against integrity. Moving forward, investors should prioritize companies with transparent governance structures and sustainable business models, rather than those reliant on charismatic leadership alone. By learning from cases like Brelax, the global investment community can better harness the potential of Chinese equities while safeguarding against unforeseen downturns.