On the evening of October 25, Caixin reported that Hubei Guangji Pharmaceutical (000952.SZ) suddenly announced that it is under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure.

In the announcement, Hubei Guangji Pharmaceutical expressed sincere apologies to investors. Currently, all of the company's production and operation activities are operating normally. During the investigation period, the company will actively cooperate with the China Securities Regulatory Commission's investigation work. Today, Hubei Guangji Pharmaceutical's intraday increase once exceeded 5%, and the closing increase was fixed at 4.82%.

Hubei Guangji Pharmaceutical mainly produces vitamins B2, B6, B12, sodium ascorbate, lactic acid and lactate series products, glucose acid series products, starch series products, and pharmaceutical preparations, and is a major supplier of vitamin B2 products globally.

This year, Hubei Guangji Pharmaceutical's stock price can be said to have experienced a roller coaster ride. Since the end of last year, the stock price, which was originally maintained above 8 yuan, began to fluctuate and decline. From the end of April to May this year, Guangji Pharmaceutical's stock price suddenly experienced consecutive days of significant increases, with a cumulative gain of over 60%, approaching the end of last year's stock price.

On May 7, Hubei Guangji Pharmaceutical issued a notice of abnormal fluctuations in stock trading, stating that the company currently has no undisclosed matters requiring disclosure. Subsequently, Hubei Guangji Pharmaceutical started a downward trend, with the stock price reaching a low of 4.69 yuan.

Hubei Guangji Pharmaceutical's performance is also somewhat synchronized with its stock price. Last year, Hubei Guangji Pharmaceutical achieved revenue of 0.7378 billion yuan, a decrease of 7.50%, with a net loss attributable to shareholders of -0.1402 billion yuan, a decrease of 378.64%; In the first half of this year, Hubei Guangji Pharmaceutical achieved revenue of 0.2965 billion yuan, a year-on-year decrease of 13.80%, and a net loss attributable to shareholders of -0.1066 billion yuan, a year-on-year decrease of 313.28%.

It is worth mentioning that Hubei Guangji Pharmaceutical was previously warned by the Hubei Securities Regulatory Bureau for violations of disclosure regulations.

In November last year, hubei guangji pharmaceutical was warned by the Hubei Securities Regulatory Bureau. Due to the announcement of the correction of previous accounting errors by hubei guangji pharmaceutical on April 20, 2023, part of the sales revenue of its subsidiary Hubei Guangji Pharmaceutical Jikang Medical Co., Ltd. was adjusted from the total method to the net method, and the financial information such as revenue and cost of goods sold in the financial reports of 2021, 2022Q1, 2022H1, and 2022Q3 was retrospectively adjusted. The financial information such as revenue and cost of goods sold in the above financial reports was inaccurately recorded, violating relevant provisions of the Securities Law.

Ruan Shu, as the chairman and general manager of hubei guangji pharmaceutical, Hu Mingfeng, as the chief financial officer of hubei guangji pharmaceutical and chairman of Jikang Medical, and Zheng Bin, as the board secretary of hubei guangji pharmaceutical, bear primary responsibility for the above violations of hubei guangji pharmaceutical. The Hubei Securities Regulatory Bureau decided to take administrative regulatory measures to issue warning letters to the three individuals mentioned above and to record them in the integrity files of the securities and futures market as required.