Juli Sling Co., Ltd., a traditional manufacturing firm long controlled by the family of Chinese actor Yang Zi, has hit a regulatory wall. On May 15, the company announced it is under formal investigation by the China Securities Regulatory Commission (CSRC) for allegedly misleading information disclosure. The market response was immediate and brutal, with the stock hitting its floor limit upon opening as investors scrambled to exit.
The probe centers on the company’s aggressive attempt to pivot its public image from a mundane producer of steel wire ropes to a high-tech player in the commercial aerospace sector. Between late 2025 and early 2026, Juli Sling bombarded investor platforms with claims of providing 'systemic guarantees' and 'capture arms' for reusable rockets. These claims capitalized on a period of intense market interest in domestic space technology, sending the company's stock price soaring by nearly 300% despite a lack of fundamental change in its business operations.
However, the reality behind the rocket-fueled rally was starkly different. Under regulatory pressure, the company eventually admitted that its commercial aerospace orders totaled less than 10 million yuan, representing a negligible 0.5% of its annual revenue. Market rumors of a 680-million-yuan order windfall turned out to be entirely fabricated, revealing a massive gap between the company’s narrative and its industrial output.
This incident is not an isolated case of 'concept-chasing' for Juli Sling. The company has a storied history of hitching its wagon to national trends, from aircraft carrier cables in 2016 to the Belt and Road Initiative in 2015 and offshore wind power in 2025. These pivots often masked a deteriorating core business, characterized by thin net profit margins of less than 1% and stagnant revenue growth that has struggled to recover to pre-2022 levels.
While retail investors were lured in by the aerospace hype—the shareholder base swelled by over 160,000 in just months—the Yang family was busy heading for the exits. Since the company’s listing, the family has reportedly cashed out over 2.8 billion yuan through share sales and equity transfers. This staggering sum is more than four times the company’s total cumulative net profit over its 16-year history as a public entity, raising profound questions about the alignment of interest between the controlling family and the broader market.