Shandong Ruyi Wool Spinning Garment Group Co., Ltd. recently announced that the company is under investigation by the China Securities Regulatory Commission (CSRC). As a result of this news, Ruyi Group’s stock price has dropped by a total of 11.35% over two trading days.
According to the announcement made by Ruyi Group on October 15, the company received a “Notice of Case Filing” from the CSRC on October 14, citing suspected violations of illegal information disclosure. Consequently, the CSRC has decided to initiate a case against the company.
On October 15, Ruyi Group’s stock price hit the downward limit at the opening, closing at 5.23 yuan per share, down by 9.98%, with a total market value of 1.369 billion yuan.
Over the past two years, Ruyi Group and related parties have been fined once and subjected to administrative supervision three times by the Shandong Securities Regulatory Bureau for violations of information disclosure regulations.
Following the news of the company being investigated, as of October 16, 2025, the company’s stock price has fallen by a total of 11.35% over two trading days. Since the beginning of 2025, the company’s stock price has experienced a cumulative decline of 9.01%.
On April 29, Ruyi Group issued a public announcement regarding the decision made by the China Securities Regulatory Commission Shandong Regulatory Bureau to impose administrative supervision measures on the company and related parties.
The Shandong Securities Regulatory Bureau stated that Ruyi Group incorrectly recognized 104 million yuan of non-operating income in its 2024 interim report, which did not meet accounting recognition conditions, leading to inaccurate information disclosure. Additionally, after releasing performance forecasts in January 2025, the company made significant revisions in April, with net profits shifting from expected gains to substantial losses, resulting in inconsistent information disclosure before and after. Moreover, the company failed to follow review procedures for related transactions and fulfill information disclosure obligations.
In February 2024, Ruyi Group disclosed that inadequate provisions were made for impairment of a long-term equity investment in its 2022 to 2023 annual reports, and that review procedures and disclosure obligations for related transactions were not properly conducted from 2021 to 2022, leading to regulatory measures being taken against the company. Seven individuals, including Qiu Yafu, received warning letter measures.
Public records show that Shandong Ruyi Wool Spinning Garment Group Co., Ltd. was originally established in 1972 as Jining Wool Spinning Textile Factory. It was restructured as a limited company in December 1993 and listed on the Shenzhen Stock Exchange in December 2007. It was once known as the “leading wool spinning company” in mainland China.
Qiu Yafu, the actual controller of Ruyi Group, has been publicly deemed unsuitable to serve as director, supervisor, or senior executive of a listed company. In 2024, Qiu Yafu handed over the position of Chairman of Ruyi Group to his daughter, Qiu Chenran.
According to previous reports from the First Financial News, Qiu Yafu had spent 40 billion yuan over ten years acquiring several renowned fashion brands in France, Switzerland, and Japan to build a “Chinese version of LVMH.” However, the acquired assets failed to generate profits as expected, and debt crisis emerged after 2020.
In June 2024, Ruyi Group disclosed that there were significant discrepancies between the forecasted performance for 2023 and the audited performance, leading to inaccurate information disclosure. The Shandong Securities Regulatory Bureau took warning letter measures against the company and three senior executives, including Qiu Chenran.
The semi-annual report released by Ruyi Group in 2025 indicated that the company achieved revenue of 154 million yuan in the first half of the year, a drastic 32.25% decrease compared to the same period last year. The net loss attributable to the parent company was 95.7257 million yuan, marking a 105% increase in losses from the same period last year.
Regarding the alleged violations of information disclosure by Ruyi Group, a team of lawyers from the Securities Market Weekly is currently gathering investors who intend to seek compensation through litigation. Previously, this team successfully helped investors who suffered losses in cases involving illegal information disclosure of stocks such as ST Creativity, ST Cube, and *ST Dongtong to file lawsuits.
According to relevant judicial interpretations, the following investors may be eligible for compensation:
1. Investors who purchased company stocks between October 1, 2019, and August 30, 2023, and sold or continued to hold the stocks on or after August 31, 2023.
2. Investors who held stocks until the closing on October 14, 2025, and sold or continued to hold the stocks on or after October 15, 2025.
The aforementioned compensation conditions are preliminary judgments made by the team of lawyers from the Securities Market Weekly and are subject to the final decision of the court.