After market close on September 21, ST Yedao announced that it had received a Notice of Case Filing from the China Securities Regulatory Commission that day. Because the company is suspected of violating laws and regulations on information disclosure, the CSRC has decided to file a case against it. The company said all business activities are currently proceeding normally, and during the investigation it will actively cooperate and fulfil its information disclosure obligations. ST Yedao's shares have been subject to other risk warnings since May 6, 2025, because Zhong Shen Asia Pacific Certified Public Accountants issued an adverse opinion on the company's 2024 internal control audit report. For the company's 2025 internal control, Zhong Shen Asia Pacific issued an unqualified audit report with an emphasis-of-matter paragraph. The emphasis-of-matter paragraph relates to incomplete documents for the transfer of title to baijiu products sold in 2020 and 2021, and insufficient basis for recognising the related revenue, involving total revenue of 30.5025 million yuan. The company disclosed an accounting error correction and retrospective adjustment announcement on April 30, 2026. In terms of performance, in the first half of 2026 the company achieved operating revenue of 173 million yuan, up 94.00 percent year on year. Net profit attributable to shareholders of the listed company was negative 7.538 million yuan, compared with negative 15.765 million yuan in the same period last year, with the loss narrowing significantly.
Hainan Yedao Group Co LtdCSRC filed a case against ST Yedao for suspected information disclosure violations, a regulatory/legal action against the company.
