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(Original title: Six pharmaceutical and biological companies announced on the same day that they received “fines”, with information disclosure issues ranking first)

Another batchPublic CompanyThe information on penalties for violations was published in a centralized manner, including Sinovac, ST Bailing, and UnnamedmedicineSix pharmaceutical and biological companies (based on Shenwan’s first-level industry classification) including Weiming Pharmaceutical, Puli Pharmaceutical, Dabao Medical and Lepu Medical disclosed relevant information on the same day. The Economic Information Daily reporter noted that among the six companies, Weiming Pharmaceutical and Puli Pharmaceutical were subject to administrative penalties, while the other four received localSecurities Regulatory BureauOverall, the six companies were punished mainly for issues such as information disclosure.

Puli Pharmaceuticals failed to disclose its 2023 annual report on schedule

Puli Pharmaceutical is one of the companies that received administrative penalties this time. On the evening of August 2, Puli Pharmaceutical issued an announcement stating that the company and related parties received the "Administrative Penalty Decision" issued by the Hainan Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Hainan Securities Regulatory Bureau").

It has been found that Puli Pharmaceutical has the following illegal facts: On April 29, 2024, Puli Pharmaceutical disclosed the "Risk Warning Announcement on the Expected Inability to Disclose the 2023 Annual Report and the 2024 First Quarter Report within the Legal Period". On April 30, Puli Pharmaceutical disclosed the "Announcement on the Inability to Disclose the 2023 Annual Report and the 2024 First Quarter Report within the Legal Period and the Suspension of the Company's Stocks and Convertible Corporate Bonds". The announcement stated that the company has not yet completed the self-examination and may involve the correction of accounting errors in the 2021 and 2022 annual financial reports, resulting in the company's inability to complete the preparation of the 2023 annual report on time and unable to disclose the 2023 annual report within the legal period (April 30, 2024). In summary, as of April 30, Puli Pharmaceutical did not disclose the 2023 annual report on schedule.

Based on this, the Hainan Securities Regulatory Bureau decided to give a warning to Puli Pharmaceutical and impose a fine of 1 million yuan; to give a warning to Fan Minhua, the then chairman and general manager of Puli Pharmaceutical, and impose a fine of 400,000 yuan; and to give a warning to Luo Tongning, the then director, deputy general manager and financial director of Puli Pharmaceutical, and impose a fine of 300,000 yuan.

Public data shows that Puli Pharmaceutical was founded in July 1992 and listed in March 2017.gem, is an enterprise engaged in drug research and development, registration, production and sales. The company's sales products are mainly prescription drugs, covering anti-allergic drugs, antipyretic analgesic drugs, antibiotics, digestive drugs, cardiovascular and cerebrovascular drugs, contrast agents, emergency rescue drugs and other fields. It is worth mentioning that Puli Pharmaceutical is the only pharmaceutical company that has a "difficult birth" in its annual report this year.

In addition to being fined for the "difficult birth" of the annual report, Puli Pharmaceutical was also investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. Puli Pharmaceutical stated in the announcement that the company is currently under investigation by the China Securities Regulatory Commission, and the correction of previous accounting errors and retrospective adjustments and other related matters are subject to the final investigation results. If the facts subsequently determined by the China Securities Regulatory Commission's administrative penalties are that the company has violated the "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules" and violated the major illegal forced delisting situation, the company's stock is at risk of being subject to major illegal forced delisting.

There are major omissions in the relevant periodic reports of Weiming Pharmaceutical

In addition to Puli Pharmaceutical, Weiming Pharmaceutical is another company that was administratively punished.

On the evening of August 2, Weiming Pharmaceutical issued an announcement stating that the company received an "Administrative Penalty Decision" issued by the China Securities Regulatory Commission. It was found that Weiming Pharmaceutical had violated regulations by failing to disclose related parties and non-operating related transactions, and failing to disclose important contracts and major progress in contract performance in a timely manner.

It is reported that from February 2018 to July 2019, Beijing Peking University Weiming Bioengineering Group Co., Ltd. ("Weiming Group") was the controlling shareholder of Weiming Pharmaceutical, and Wang Mouping was a shareholder of Weiming Pharmaceutical with a shareholding of more than 5%. Weiming Group held 68.75% of the shares of Beijing Weiming Bosi Bio-Intelligence Technology Development Co., Ltd. ("Weiming Bosi") and 85% of the shares of Changchun Weiming Bio-Economy Technology Development Co., Ltd. ("Changchun Weiming"). According to relevant regulations, Weiming Group, Weiming Bosi, and Changchun Weiming are legal persons related to Weiming Pharmaceutical, and Wang Mouping is a natural person related to Weiming Pharmaceutical.

In the first half of 2018, the full year of 2018, and the first half of 2019, the total amount of related-party transactions that Weiming Pharmaceutical did not disclose with the above-mentioned related parties was RMB 378 million, RMB 608 million, and RMB 341 million, respectively, accounting for 13.23%, 22.03%, and 12.33% of the audited net assets of the latest period, and 13.2%, 22.03%, and 12.22% of the net assets of the current period, respectively. According to relevant regulations, Weiming Pharmaceutical should disclose the related parties Weiming Bosi, Changchun Weiming, and the above-mentioned related-party transactions in the 2018 semi-annual report, the 2018 annual report, and the 2019 semi-annual report, but it did not disclose them, resulting in major omissions in the relevant periodic reports.

At the same time, Weiming Pharmaceutical has not disclosed important contracts and major progress in contract performance in a timely manner as required. The announcement shows that no later than May 14, 2022, Weiming Pharmaceutical signed the "Capital Increase Agreement on Weiming Biopharmaceutical Co., Ltd." with Weiming Biopharmaceutical Co., Ltd. (referred to as "Xiamen Weiming") and Hangzhou Qiangxin Biotechnology Co., Ltd. (referred to as "Hangzhou Qiangxin") without fulfilling the review procedures of the board of directors and the general meeting of shareholders, stipulating that Hangzhou Qiangxin will subscribe for Xiamen Weiming's 67.6749 million yuan of new registered capital at a premium of 2.885 billion yuan to obtain a 34% stake in Xiamen Weiming. The transaction amount of the agreement accounts for 120.8% of Weiming Pharmaceutical's latest audited net assets. After the signing of the agreement, Xiamen Weiming completed the change of shareholder information industrial and commercial registration on May 18, 2022.

According to the relevant provisions of the Securities Law, the capital increase agreement is an important contract signed by Weiming Pharmaceutical, and Xiamen Weiming's change of industrial and commercial registration is a major progress in the performance of the contract. Weiming Pharmaceutical should have disclosed it in a timely manner, but it did not disclose it as required.

Based on the above two violations, the securities regulatory authorities decided to order Weimin Pharmaceutical to correct its violations, give it a warning, and impose a fine of 3.1 million yuan; to give a warning to the then chairman Pan Aihua, and impose a fine of 2.4 million yuan; to give a warning to the then director Luo Deshun, and impose a fine of 1.4 million yuan; to give a warning to the then director Yang Xiaomin, and impose a fine of 1.2 million yuan; to give a warning to the then secretary of the board of directors Zhao Hui, and impose a fine of 300,000 yuan; to give a warning to the then chairman of the board of supervisors Zhao Furong, the then general manager Ding Xueguo, the then director Xu Ruoran, and the then director Zhang Yinuo, and impose a fine of 200,000 yuan each; to give a warning to the then financial director Lai Wenbo, and impose a fine of 100,000 yuan; to give a warning to the then financial director Fang Yan, and impose a fine of 50,000 yuan.

In view of the fact that Pan Aihua's illegal circumstances are relatively serious, and Luo Deshun and Yang Xiaomin's illegal circumstances are serious, in accordance with relevant regulations, the securities regulatory authority has decided to ban Pan Aihua from the securities market for 10 years, and to ban Luo Deshun and Yang Xiaomin from the securities market for 5 years respectively. From the date of the announcement of the decision, during the ban period, in addition to being prohibited from continuing to engage in securities business in the original institution or serving as directors, supervisors, or senior managers of the original listed companies or non-listed public companies, they are also prohibited from engaging in securities business in any other institution or serving as directors, supervisors, or senior managers of other listed companies or non-listed public companies.

Four companies received administrative supervision measures

On the evening of August 2, four pharmaceutical and biological companies announced that they had received administrative supervision measures from local securities regulatory bureaus.

Among them, Sinovac Pharmaceuticals and related personnel recently received the "Administrative Supervision Measures Decision" issued by the Shandong Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Shandong Securities Regulatory Bureau"). Upon investigation, the company disclosed inaccurate information on the 2023 annual performance forecast, failed to maintain the continuity of voluntary information disclosure, and used the raised funds for irregular cash management.

According to relevant regulations, the Shandong Securities Regulatory Bureau decided to take administrative supervision measures against Sinovac Pharmaceuticals, including ordering it to make corrections and issuing a warning letter, and to take administrative supervision measures against Deng Xueqin (company chairman), Zhao Yanqing (company general manager), and Wang Xiaoqin (company financial director and board secretary), including issuing a warning letter, and record them in the securities and futures market integrity file database.

ST Bailing and relevant responsible persons recently received administrative supervision measures issued by the Guizhou Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Guizhou Securities Regulatory Bureau"). Upon investigation, the company had problems such as inaccurate sales expense attribution periods that did not comply with the provisions of the enterprise accounting standards and major defects in internal control. The above problems led to the company's financial data disclosure for many years to be untrue.

In accordance with relevant regulations, the Guizhou Securities Regulatory Bureau decided to take regulatory measures of ordering ST Bailing to correct its mistakes, and record them in the integrity file of the securities and futures markets. Further regulatory arrangements will be made based on the verification results. Regulatory measures of regulatory talks will be taken against the company's chairman Jiang Wei, general manager and board secretary Niu Min, financial director Li Hongxing, and then-financial director Zheng Rong, and these will be recorded in the integrity file of the securities and futures markets.

Dabao Medical recently received an administrative supervision measure decision letter issued by the Xiamen Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Xiamen Securities Regulatory Bureau"). Upon investigation, the company had problems such as incomplete disclosure of the list of related parties and related relationships, irregular internal management of information disclosure affairs, inadequate implementation of the registration and management system for insiders of insider information, irregular use of idle raised funds, and simple errors in the information disclosure of the annual report.

According to relevant regulations, the Xiamen Securities Regulatory Bureau decided to take supervisory and management measures of ordering Dabao Medical to correct its mistakes, and of issuing warning letters to Lin Zhixiong (company chairman), Luo Jiong (company general manager), Hua Xiannan (company secretary of the board of directors), and Chen Danhe (company financial director), and recorded the relevant circumstances in the integrity file in accordance with the provisions of the "Securities and Futures Market Integrity Supervision and Management Measures".

In addition, Lepu Medical received the "Decision on Taking Administrative Supervision Measures to Order Correction against Lepu (Beijing) Medical Devices Co., Ltd." issued by the Beijing Securities Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Beijing Securities Regulatory Bureau"). After investigation, Lepu Medical used 100 million yuan of idle raised funds for cash management from May 25, 2023 to June 29, 2023, and failed to perform the review procedures and information disclosure obligations in a timely manner. It was not until April 19, 2024 that it supplemented the review procedures and announced them. In addition, the company also has the situation that the fundraising system is not implemented in place, some intangible assets have not fully considered the signs of impairment, some revenue recognition points are inaccurate, some revenue recognition documents are not signed incompletely, and the time entry of the sales product delivery system is delayed. The above problems reflect the company's shortcomings in standardized operations. According to relevant regulations, the Beijing Securities Regulatory Bureau decided to take administrative supervision measures to order Lepu Medical to correct and record it in the integrity file of the securities and futures market.