Hainan Puli Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company") previously received the "Notice of Investigation" (Document No. 03720240024) from the China Securities Regulatory Commission (hereinafter referred to as "CSRC") due to suspected violations of information disclosure laws. The CSRC decided to initiate an investigation against the Company based on the "Securities Law of the People's Republic of China" and the "Administrative Penalty Law of the People's Republic of China." For specific details, please refer to the Company's announcement titled "Announcement on Receiving the Notice of Investigation from the China Securities Regulatory Commission and Related Risk Warning" (Announcement No. 2024-093) disclosed on the Giant Tide Information Network (www.cninfo.com.cn).
On January 4, 2025, the Company received the "Advance Notice of Administrative Penalty" (Document No. [2025]1) issued by the CSRC. For specific details, please refer to the Company's announcement titled "Announcement on Receiving the Advance Notice of Administrative Penalty from the China Securities Regulatory Commission and Major Illegal Mandatory Delisting Risk Warning" (Announcement No. 2025-002) disclosed on January 5, 2025.
On March 21, 2025, the Company and relevant parties received the "Administrative Penalty Decision" (Document No. [2025]45) from the CSRC. The specific content is announced as follows:
Main Content of the Administrative Penalty Decision
Parties Involved: Hainan Puli Pharmaceutical Co., Ltd. (hereinafter referred to as "Puli Pharmaceutical" or "the Company"), located in the Guilinyang Economic Development Zone, Meilan District, Haikou City, Hainan Province.
- Fan Minhua, female, born in October 1961, then Chairman and General Manager of Puli Pharmaceutical, residing in Hangzhou, Zhejiang Province.
- Luo Tongning, female, born in November 1975, then Director, Deputy General Manager, and Chief Financial Officer of Puli Pharmaceutical, residing in Hangzhou, Zhejiang Province.
- Zhu Xianhua, female, born in July 1972, then Chief Accountant and Head of the Accounting Department of Puli Pharmaceutical, residing in Hangzhou, Zhejiang Province.
- Zou Yinkui, male, born in September 1967, then Deputy General Manager of Puli Pharmaceutical, residing in Haikou, Hainan Province.
- Ding Yu, male, born in July 1981, then Chairman of the Supervisory Board of Puli Pharmaceutical, residing in Hangzhou, Zhejiang Province.
- Zhou Mao, male, born in September 1970, then Director, Secretary of the Board, and Deputy General Manager of Puli Pharmaceutical, residing in Hangzhou, Zhejiang Province.
According to the relevant provisions of the "Securities Law of the People's Republic of China," the CSRC conducted an investigation into Puli Pharmaceutical's violations of information disclosure laws and informed the parties of the facts, reasons, basis for the administrative penalty, and the rights entitled to the parties. At the request of Puli Pharmaceutical and Fan Minhua, a hearing was held to listen to the statements and defenses of the parties and their representatives. The parties Luo Tongning, Zhu Xianhua, Zou Yinkui, Ding Yu, and Zhou Mao made statements and defenses but did not request a hearing. The case has now been investigated and concluded.
It was found that the parties had the following illegal facts: From 2021 to 2022, Puli Pharmaceutical falsely confirmed sales revenue and profits by fabricating sales of finished and raw pharmaceutical products. Specifically, in 2021, the Company overstated operating revenue by 436,004,495.01 yuan, accounting for 28.90% of the disclosed operating revenue for that year, with corresponding operating costs of 128,197,101.98 yuan, resulting in an overstated total profit of 290,175,562.61 yuan, which accounted for 62.06% of the disclosed total profit for that year; in 2022, the Company overstated operating revenue by 455,776,233.78 yuan, accounting for 25.23% of the disclosed operating revenue for that year, with corresponding operating costs of 69,013,203.17 yuan, resulting in an overstated total profit of 379,066,467.07 yuan, which accounted for 86.36% of the disclosed total profit for that year.