PLBIO(SZ:000403) Chang Jiang Shang Bao·2025-05-13 23:12Core Viewpoint - The internal control issues of the blood product company, Pailin Biological, have been exposed, leading to regulatory warnings for its two former chairpersons and general managers [1][3]. Summary by Relevant Sections Internal Control Issues - Pailin Biological has been found to have multiple internal control deficiencies and inadequate management of insider information, resulting in regulatory actions [2][3]. - The company has been ordered to rectify these issues and improve its internal control systems by June 8, 2024 [3][4]. Financial Performance - From 2018 to 2024, Pailin Biological's net profit attributable to shareholders grew over eightfold [2]. - In Q1 2024, the company experienced a rare decline in both revenue and net profit, with revenues and net profits of 375 million and 89 million respectively, marking year-on-year decreases of 14% and 26.95% [9]. - The decline was attributed to production capacity not meeting operational needs, as two wholly-owned subsidiaries are undergoing expansion [2][9]. Management Changes - In 2023, Pailin Biological underwent significant management changes, with a power struggle leading to the appointment of Fu Shaolan as co-chairperson [2][5]. - Fu Shaolan's salary in 2024 was reported at 3.7723 million, an increase of 721,300 from 2023, making her the highest-paid among the board members [2]. Production Capacity Expansion - The company is currently expanding its production capacity, with the second phase of expansion at its subsidiary, Paisifiko, expected to increase annual capacity to 1,600 tons [9]. - The total annual production capacity is projected to exceed 3,000 tons after the completion of expansions, which is anticipated to positively impact future financial performance [9]. Market Performance - Pailin Biological's stock price has seen a significant decline, dropping over 50% from a peak of 49.82 yuan per share in August 2020 to 21.82 yuan per share as of May 13, 2024 [9].