The reasons for the collapse of Qinghai Kingho Group’s Wulan Coal Chemical Company include broken capital chains and debt defaults, lagging project construction progress, poor efficiency in the use of funds, and declining market demand.

1. Broken capital chain and debt default: Wulan Coal Chemical Company has been conducting large-scale investment expansion and debt financing for many years. However, due to the poor domestic coal market and overcapacity and other issues, the company’s operations have Something serious went wrong. The company's liabilities have reached billions of yuan, and many of its major lending banks have defaulted. Coupled with various reasons such as falling coal prices, the company was unable to continue operations and was eventually forced to declare bankruptcy.

2. Lagging project construction progress and poor capital utilization efficiency: During the construction process of Wulan Coal Chemical Company, there were problems such as lagging project construction progress and poor capital utilization efficiency, which resulted in the company investing huge amounts of money but failing to Didn't get the expected return.

3. Declining market demand: Due to the global economic slowdown and the development of renewable energy, domestic demand for coal has gradually decreased, which has also put great pressure on the operations of coal companies. As a coal chemical enterprise, Wulan Coal Chemical Company cannot escape the impact of this decline in market demand.