The Zhejiang Securities Regulatory Bureau discovered the following problems during on-site inspections: 1. From 2018 to September 2023, the company failed to disclose the use of non-operating capital by related parties in accordance with regulations, and the use of funds raised was irregular, resulting in inaccurate disclosure of information in the relevant annual periodic reports and special fund-raising reports. 2. There is insufficient basis for revenue recognition from the company's pharmaceutical product sales business; revenue from some pharmaceutical product sales operations was confirmed earlier than the customer's signing time, and there were cases where revenue was confirmed in advance; in 2021, the company's Chinese herbal medicine trade business was not accounted for according to the nature of the business. The above matters have led to inaccurate disclosure of the company's relevant annual financial data. 3. From 2017 to September 2023, the company illegally used personal bank accounts to receive and pay funds. There were major flaws in related internal controls, and the disclosure of information in internal control reports was inaccurate.