天圣制药被预处罚，股民索赔可期

Core Viewpoint - Tian Sheng Pharmaceutical Group Co., Ltd. is facing administrative penalties from the China Securities Regulatory Commission (CSRC) for alleged violations related to profit inflation and failure to disclose related party transactions in its 2017 and 2018 annual reports [1][2]. Summary by Sections Allegations and Findings - Tian Sheng Pharmaceutical inflated total profits by CNY 174,783,429.59 in 2017 and CNY 47,908,869.95 in 2018 through improper financial practices [1]. - The company also inflated costs related to traditional Chinese medicine procurement, resulting in a net profit inflation of CNY 92,204,254.47 in 2017 and CNY 28,823,001.51 in 2018, which accounted for 30.21% and 20.61% of the reported profits for those years, respectively [1]. Regulatory Actions - The CSRC's Chongqing Regulatory Bureau has determined that Tian Sheng Pharmaceutical and its actual controller, Liu Qun, violated the Securities Law by failing to disclose related party transactions and inflating profits [2]. - The CSRC plans to impose corrective measures, issue warnings, and impose fines on the company and responsible individuals [2]. Investor Implications - Investors who purchased Tian Sheng Pharmaceutical's securities between April 23, 2018, and January 8, 2025, and sold or held them after January 9, 2025, may be eligible for compensation due to the alleged violations [3]. - Legal representatives are actively seeking to assist affected investors in filing claims for damages resulting from the company's actions [3][4].