Yinyi receives warning over financial inaccuracies, uncompleted share buyback

Yinyi Co. Ltd. and executives Ye Ji and Lu Yan received a warning letter from the Gansu Regulatory Bureau of the China Securities Regulatory Commission on October 31, 2025. The warning stems from two primary issues: inaccurate financial data and an uncompleted share buyback.

The company’s financial statements for Q1, H1, and Q3 2024 contained inaccuracies in the consolidated balance sheet and income statement, necessitating a restatement on April 29, 2025. This breach of information disclosure rules was attributed to former chairman and president Ye Ji and former CFO Lu Yan.

Additionally, Yinyi failed to complete a substantial portion of its planned share buyback. Approved on July 25, 2024, the plan aimed to repurchase shares worth between yuan 600m and yuan 1bn within six months. Despite an extension until July 24, 2025, Yinyi only repurchased 4.8331m shares, amounting to yuan 11.0148m, which represented merely 1.8% of the lower threshold of the planned amount. The company has committed to submitting a written rectification report within 30 days.