PKU HealthCare (SZ:000788) Jing Ji Guan Cha Wang·2025-10-31 04:33Core Viewpoint - The sudden criminal detention of Xu Xiren, the actual controller, chairman, and president of Beijing University Pharmaceutical (000788.SZ), raises concerns about the company's governance and future operations, especially following a recent change in control and significant financial dependencies [1][5]. Company Overview - Beijing University Pharmaceutical, originally established in 1965 as Southwest Synthetic Pharmaceutical Factory, was listed on the Shenzhen Stock Exchange in 1997. In December 2024, it became a subsidiary of New Advantage International through a symbolic acquisition [1][2]. - The company has faced significant changes in its ownership structure, with Xu Xiren emerging as the actual controller after New Advantage International acquired 100% of Southwest Synthetic's shares for 1 yuan, despite the market value of the shares being approximately 860 million yuan [2][5]. Recent Developments - On October 29, 2025, the company announced that Xu Xiren was detained for criminal investigation, leading to the delegation of his responsibilities to other executives [1]. - The company has been under scrutiny due to its ties with the Zhejiang Taizhou businessman Hua Xuande and the Zhejiang Zhongbei Jiuzhou Group, which were involved in the ownership structure of New Advantage International [2][3]. Financial Performance - In the third quarter of 2025, Beijing University Pharmaceutical reported a revenue of 274 million yuan, a decrease of 47.95% year-on-year, and a net profit of 28 million yuan, down 35.11% year-on-year [6]. Business Operations - The subsidiary, North Medical Pharmaceutical, has heavily relied on its partnership with Beijing University of Chinese Medicine, which ended in May 2025, leading to a halt in its main business operations and potential risks of business transformation [6].