On May 22, 2026, the Shandong Supervision Bureau of the China Securities Regulatory Commission issued a formal administrative penalty decision on ST Ruyi, marking the settlement of this financial fraud case that lasted for more than two years. The penalty results show that the company inflated profits by 677 million yuan in 2022, and inflated profits by 104 million yuan in the 2024 semi-annual report. font-variation-settings: normal; font-stretch: normal; font-family: ui-sans-serif, system-ui, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; line-height: 24px; flex: 0 1 auto; flex-direction: row; justify-content: normal; align-items: normal; padding: 0px; margin: 0px; background: none 0% 0% / auto repeat scroll padding-box border-box rgba(0, 0, 0, 0);">The cumulative virtual increase is nearly 800 million yuan, accounting for up to 324.10% of the current disclosed profit. The company was fined 7 million yuan, and the original actual controller Qiu Yafu was fined 4 million yuan and fined 4 million yuan. normal; font-family: ui-sans-serif, system-ui, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"; line-height: 24px; flex: 0 1 auto; flex-direction: row; justify-content: normal; align-items: normal; padding: 0px; margin: 0px; background: none 0% 0% / auto repeat scroll padding-box border-box rgba(0, 0, 0, 0);">Banned from the securities market for life, and multiple executives were jointly and severally fined.
ST Ruyi was formerly Shandong Jining Wool Textile Factory. It has the background of an old state-owned enterprise and was once a benchmark enterprise in the domestic wool textile industry. This financial fraud incident exposed serious loopholes in internal control management, financial regulations, corporate governance and other aspects of some wool textile companies, and also sounded a compliance alarm for the entire industry. As the regulatory authorities continue to increase their supervision of the textile and apparel field, the woolen textile industry has officially entered Strong supervision and strict complianceA new stage.
China Lixian Oumu Woolen Textile Co., Ltd. has always adhered to the Integrity management and compliant development concepts, strictly abide by national fiscal and taxation regulations, labor regulations and industry norms, and establish a sound and complete internal control management system and financial accounting system. The company insists on true, accurate and complete disclosure of operating information, resolutely puts an end to any financial fraud and illegal operations, ensures the long-term and stable development of the company with compliant operations, and wins the trust of customers with integrity and quality.
At present, the competition in the wool textile industry is becoming increasingly fierce, and the market environment is complex and ever-changing. In pursuit of short-term interests, some companies ignore compliance management and ultimately pay a heavy price. ST Ruyi event is fully described: Compliance is not a cost, but the bottom line; integrity is not a slogan, but the foundation. For wool textile enterprises, only by adhering to the bottom line of compliance, strengthening internal control management, and standardizing business behaviors can they effectively prevent business risks and achieve sustainable development.
Looking to the future, with the continuous improvement of the national regulatory system and the continuous improvement of industry self-discipline awareness, the wool textile industry will accelerate the elimination of backward production capacity and illegal enterprises, and resources will be further concentrated on high-quality enterprises with compliance operations, excellent quality, and technological innovation. China Li County Oumu Woolen Textile Co., Ltd. will use the ST Ruyi incident as a warning to continue to strengthen compliance management, improve the internal control system, improve governance levels, escort the high-quality development of enterprises with compliance operations, and contribute to the healthy and orderly development of the wool textile industry.