HWHG(SH:600079) Xin Lang Cai Jing·2025-12-15 11:26Core Viewpoint - The company Renfu Pharmaceutical has received a pre-penalty notice from the China Securities Regulatory Commission due to financial misconduct, leading to its stock being designated as ST (special treatment) and a significant change in its operational status [1][4]. Regulatory Actions - On December 12, Renfu Pharmaceutical announced it received an administrative penalty notice from the Hubei Regulatory Bureau of the China Securities Regulatory Commission [1][4]. - The company will be renamed "ST Renfu," with its stock price fluctuation limited to 5% daily due to the financial violations [4]. Financial Misconduct Details - Renfu Pharmaceutical manipulated its financial statements by controlling independent entities without including them in consolidated financial reports, leading to distorted financial data over several years [2][5]. - The company has 12.785 billion yuan in non-operating fund occupation from 2020 to March 2022, which was not disclosed in a timely manner [2][5]. - A significant undisclosed related-party transaction occurred in March 2022, where four subsidiaries purchased property assets from Kemeilide for 1.645 billion yuan, representing 9.17% of the company's net assets for that year [2][6]. Penalties and Legal Actions - The Hubei Regulatory Bureau plans to impose a total fine of 36.7 million yuan on multiple parties involved in the case [2][6]. - Updated compensation conditions for affected investors include those who purchased shares between April 27, 2021, and October 22, 2024, and sold or still hold shares at a loss after October 23, 2024 [1][5].