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on september 9, laobaixing (603883.sh, stock price 19.71 yuan, market value 14.984 billion yuan) issued a stock trading risk warning announcement. the company disclosed the "announcement on the detention of the chairman" on july 31, 2024. mr. xie zilong, one of the actual controllers of the company, is in detention and case investigation. the company is not aware of the progress and conclusion of the detention investigation.

as of the date of this announcement, there have been no significant changes in the company's principal business, operating conditions, goodwill, and operating environment compared with previously disclosed information. there are no internal or external operating environments that are expected to undergo significant changes, and the company has no major matters that should be disclosed but have not been disclosed.

on the market, laobaixing has achieved 6 boards in 7 days since august 30, and its stock price has soared by 60.64%.

laobaixing released an unusual movement announcement on the evening of september 6. the company disclosed the "announcement on the detention of the chairman" on july 31, 2024. as of the date of this announcement, the company has not received any investigation or cooperation investigation documents from the competent authority, and is not yet aware of the progress and conclusion of the detention investigation. the company's business management is proceeding normally.

on july 31, laobaixing announced that the family of xie zilon, the company's actual controller and chairman, received a notice issued by the hunan provincial supervision commission that xie zilon was detained and under investigation.

the matters involved are not related to the company. as of the date of this announcement, the company has not received any notification from the relevant authorities and has not been asked to assist in the investigation.the company has a sound organizational structure and standardized governance system. other directors, supervisors and senior management personnel are performing their duties normally. this matter will not have a significant impact on the company's normal operations.

according to the company's annual report, xie zilong was born in 1966, is a chinese national, a member of the china democratic national construction association, and the founder of the company. he is a national model worker and a nominee for the fifth national moral model award (honesty and trustworthiness). he is a member of the central committee of the china democratic national construction association, deputy chairman of the hunan provincial committee, honorary president of the china pharmaceutical materials association, vice president of the china pharmaceutical commerce association, and president of the hunan pharmaceutical distribution industry association. he is currently the company's chairman.

public information shows that xie zilon holds 18.28% of the company's shares with a market value of 2.033 billion yuan, making him the actual controller of the company.

the company's official website shows thatlaobaixing pharmacy is a leading enterprise in china's pharmaceutical retail industry, the champion of the top 100 chinese pharmaceutical retail enterprises in comprehensive competitiveness, one of the top 500 service enterprises in china, and one of the top 100 enterprises in hunan province.

since its establishment in 2001, the company has successfully developed markets in 18 provinces including hunan, jiangsu, anhui, gansu, shaanxi, guangxi, inner mongolia, tianjin, hubei, zhejiang, shanxi, henan, shandong, shanghai, ningxia, guizhou, guangdong, jiangxi, etc.it has more than 14,000 stores and over 40,000 employees.

in 2023, the company's operating income was 22.437 billion yuan, a year-on-year increase of 11%; net profit attributable to shareholders of the parent was 929 million yuan, a year-on-year increase of 18%; non-recurring net profit attributable to shareholders of the parent was 844 million yuan, a year-on-year increase of 15%.

in the first quarter of this year, the company's operating income was 5.539 billion yuan, a year-on-year increase of 1.8%; net profit attributable to shareholders of the parent was 321 million yuan, a year-on-year increase of 10%; net profit attributable to shareholders of the parent after deducting non-recurring items was 311 million yuan, a year-on-year increase of 10%.