According to the Zhitong Finance App, Ruyi Group (002193.SZ) announced that the company recently received administrative supervision measures decisions from the Shandong Securities Regulatory Bureau “Decision on Issuing Warning Letter Measures against Shandong Ruyi Woolen Clothing Group Co., Ltd.”, “Decision on Issuing Warning Letter Measures for Three Companies Including Shandong Ruyi Technology Group Co., Ltd.”, and “Decision on Measures to Issue Warning Letters to Qiu Yafu, Yang Cheng, Zhang Yiying, and Xu Changrui”.

The Shandong Securities Regulatory Bureau stated that the company has committed irregularities: First, it did not disclose related transactions in accordance with regulations. From July 2020 to April 2023, Yang Cheng, the company's supervisor, served as the legal representative, executive director and general manager of Shanxi Lantian Truck Trading Co., Ltd. (Shanxi Lantian for short). Shanxi Lantian is an affiliate of the company. In 2021, the company had a raw material procurement business with Lantian, Shanxi. The company did not disclose information on this, nor did it complete the approval procedures for related transactions. Second, there was a loss in the company's operating performance in its 2022 annual report, and the company did not forecast its performance.

Shandong Ruyi Technology Group Co., Ltd. is the controlling shareholder of the listed company. Shandong Ruyi Woolen Group Co., Ltd. (Woolen Group for short) and Shandong Jining Ruyi Import & Export Co., Ltd. (Ruyi Import and Export for short) are shareholders of the listed company, and the three parties are acting in concert. There were the following irregularities during the passive reduction of Ruyi Group shares held by the three companies during the period from July 2022 to February 2023: First, the centralized bidding reduction ratio of the three companies within 3 months exceeded 1% of the total number of Ruyi Group shares. Second, the Wool Spinning Group and Ruyi's import and export holdings did not disclose in advance in accordance with regulations before the reduction in their import and export holdings.