According to the Zhitong Finance App, Guangji Pharmaceutical (000952.SZ) announced that the company recently received the “Decision on Measures to Issue Warning Letters against Hubei Guangji Pharmaceutical Co., Ltd., Ruan Shu, Hu Mingfeng, and Zheng Bin” issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission (“Hubei Securities Regulatory Bureau”).

After investigation, the company has the following irregularities: On April 20, 2023, Guangji Pharmaceutical disclosed the “Notice on Correction of Early Accounting Errors”, adjusted some distribution business revenue of the subsidiary Hubei Guangji Pharmaceutical Co., Ltd. (hereinafter referred to as Jikang Pharmaceutical) from the total amount method to the net method, and retroactively adjusted the “2021 Annual Report”, “2022 First Quarter Report”, “2022 Semi-Annual Report”, and “2022 Third Quarter Report” and other financial information such as operating income and operating costs in the “2022 Third Quarter Report”.

According to reports, financial information such as operating income and operating costs in the “2021 Annual Report”, “2022 First Quarter Report”, “2022 Semi-Annual Report”, and “2022 Third Quarter Report” disclosed by the company earlier is inaccurate, in violation of relevant regulations. Ruan Shu, as the company's chairman and general manager, Hu Mingfeng, as the company's financial director and chairman of Jikang Pharmaceutical, and Zheng Bin, as the company's board secretary, failed to fulfill their obligation of diligence and due diligence in accordance with regulations, and was mainly responsible for the company's irregularities. The Hubei Securities Regulatory Bureau decided to take administrative measures to issue warning letters against the company, Ruan Shu, Hu Mingfeng, and Zheng Bin.