In a legal battle that sparked widespread social attention, last year, Lan Shili, the former richest man in Hubei, was found guilty of defamation by a court for comments he made on a short video platform regarding China’s edible oil giant Yihai Jiali Jinlongyu Food Group Co., Ltd. (Jinlongyu). Despite paying the compensation ordered by the court, his bank account was temporarily frozen, leading to a public outcry.
The legal dispute originated from content Lan Shili posted on a short video platform in July 2024. In the video, he claimed that “oil tankers transport edible oil to Jinlongyu’s factory,” and alleged that “Jinlongyu has lost 650 billion in two days,” implying unethical practices and likening them to the tainted milk scandal. These remarks led to Yihai Jiali suing Lan Shili for infringement of reputation rights.
The reputation dispute case was ruled upon by the Shanghai Pudong New Area Court on April 11 this year. The court held Lan Shili liable for damages and ordered him to compensate Yihai Jiali with 10,000 RMB for economic losses and 20,000 RMB for legal fees. Lan Shili appealed the decision, but on September 29, the appellate court upheld the original ruling.
After the verdict, the details of compliance triggered a larger public relations crisis and legal maneuvering. Lan Shili issued an apology statement on November 11, admitting that his previous comments did not align with the facts and pledged not to spread false information in the future.
However, Lan Shili held a press conference on November 20, accusing Jinlongyu of crossing the line and declared a war against them. He officially applied for a retrial with the Shanghai High Court in the reputation dispute case and accused Yihai Jiali of not returning the excess compensation he mistakenly paid. He claimed to have submitted a lawsuit to the Shanghai Pudong New Area Court in this regard.
Despite Lan Shili’s payment of 10,000 RMB in compensation to Yihai Jiali, a financial input error led to an overpayment of 100,000 RMB. Yihai Jiali still pursued court enforcement, resulting in the freezing of Lan Shili’s account, nearly leaving him stranded while traveling abroad.
On November 25, Yihai Jiali denied Lan Shili’s accusation of hiding payments and stated that they would take legal actions as needed. The company indicated that after the judgment became final, Lan Shili failed to comply timely, leading to the court freezing 30,700 RMB in his account. Following Lan Shili’s payment and public apology, the court lifted the freeze on November 10 and Yihai Jiali reimbursed the excess amount on November 18.
According to records from both parties and public information, on October 21, Wuhan Business Culture Media Co., Ltd. transferred 100,000 RMB to Yihai Jiali on Lan Shili’s behalf for compensation. Lan Shili was then enforced to pay 30,000 RMB by the Shanghai Pudong New Area Court on October 22. The subsequent repayment of 69,300 RMB to Wuhan enterprise by Yihai Jiali was labelled as “refund of overpayment.”
Financial influencer “Storm Eye” reported on the situation, pointing out a chat screenshot between Lan Shili’s representative and Jinlongyu’s lawyer, which suggested a potential misunderstanding in the execution process due to Lan Shili’s delayed public apology as required by the judgment.
The case has captured public attention, with many expressing support for Lan Shili and even vowing to boycott Jinlongyu products. Apart from the feud with Lan Shili, a recent court ruling found one of Yihai Jiali’s subsidiaries guilty of contract fraud.
On November 19, Yihai Jiali announced that its subsidiary, Yihai (Guangzhou) Grains & Oils Industry Co., Ltd., received a criminal judgment from the Huai Bei Intermediate Court, where they were convicted of contract fraud and fined 1 million RMB. The subsidiary was held jointly liable with Yunnan Huijia Import and Export Co., Ltd for substantial economic losses incurred by Anhui Huawen International Economic and Trade Co., Ltd, amounting to 1.881 billion RMB.