On the evening of May 11th, Chinese agricultural and food enterprise “ST Longda” (formerly known as “Longda Cuisine”) announced that its actual controlling shareholder, Dai Xuebin, has been criminally detained by the Public Security Bureau of Dazhou City, Sichuan Province, due to suspicion of committing crimes. This has led to a crisis for Longda’s controlling shareholder, Dai Xuebin’s company, “Lanrun Development”.
According to reports from mainland media, “ST Longda” also stated that Dai Xuebin did not hold any position in the listed company and was not involved in the daily operational decision-making of the company. The company’s management team is currently functioning normally, and the production and operation order is stable.
On May 12th, “ST Longda” opened with a limit-down. This marks the sixth consecutive limit-down for the company since April 30th. Prior to this, due to the implementation of the “other risk warning” by the Shenzhen Stock Exchange, the company’s stock abbreviation has been changed from “Longda Cuisine” to “ST Longda”, with a daily trading limit of 5%.
Publicly available information shows that “ST Longda” is primarily engaged in food processing, slaughtering, and breeding businesses, with products including pre-packaged foods, cooked food products, and fresh frozen meat.
Before Dai Xuebin was criminally detained, there were already signs indicating his situation. On April 30th, an announcement from the Standing Committee of the National People’s Congress of the Chinese Communist Party showed that the Standing Committee of the Sichuan Provincial People’s Congress decided to remove Dai Xuebin from his position as the 14th National People’s Congress representative, ending his representative qualifications.
Publicly available information indicates that Dai Xuebin, born in 1979 in Dazhou, Sichuan, made his early career in the construction industry. In 2019, the company controlled by Dai Xuebin, “Lanrun Development,” acquired about 3.2 billion yuan to take a 29.92% stake in “Longda Cuisine,” becoming the controlling shareholder. Subsequently, “Longda Cuisine” gradually built a business structure centered around food, supported by slaughtering and breeding.
During Lanrun’s expansion peak, Dai Xuebin once made it onto the Hurun Global Rich List, with his wealth reaching up to 12.5 billion yuan.
At the time of Dai Xuebin’s detention, “ST Longda” itself was already facing operational pressures.
According to reports from mainland media such as “Time Weekly,” the 2025 annual report released by “ST Longda” on the evening of April 28th showed an 8.83% year-on-year decrease in operating income in 2025, with a significant decline in net profit attributable to the listed company shareholders. As we entered 2026, the company’s operational pressure has not eased; it continued to incur losses in the first quarter, with a 19.25% year-on-year decrease in operating income during that quarter.
Affected by factors such as declining performance, risk warnings, and issues with the controlling shareholder, the company’s stock price has been weakening continuously. Since April 30th, “ST Longda” has seen multiple consecutive trading days with limit-downs.
In addition to the pressure on the listed company’s performance, the debt issues of Lanrun Development, the controlling shareholder, have also been further exposed.
On April 24th of this year, “ST Longda” issued a statement announcing that due to a breach of equity pledge agreement, Zhongtai Securities had enforced a forced liquidation of the 10 million shares held by Lanrun Development in the company. Public reports also mentioned that a considerable proportion of the “ST Longda” shares held by Lanrun Development were temporarily frozen.
According to the 2025 annual report of “ST Longda,” the shares of “ST Longda” held by Lanrun Development have mostly been pledged to banks, trusts, and securities firms. Data from the mainland enterprise information platform “Tianyancha” also shows that Dai Xuebin is involved in multiple lawsuits and has been listed as a person subject to enforcement and restricted high consumption.
In response to this, “ST Longda” stated during an earnings briefing that the forced execution matter concerning the controlling shareholder would not lead to a change in the actual control of the company, nor have any adverse effects on the company’s production, operation, and corporate governance.