Changyao Group(SZ:300391) Sou Hu Cai Jing·2025-12-26 13:16Core Viewpoint - Changjiang Pharmaceutical is facing delisting risks due to serious financial fraud allegations, with significant discrepancies in reported revenues and profits over the past three years [1][3]. Group 1: Financial Misconduct - The company reported inflated revenues of 215 million, 284 million, and 234 million yuan for the years 2021, 2022, and 2023, respectively, accounting for 9.12%, 17.57%, and 19.51% of the disclosed revenues for those years [1][4]. - The inflated total profits were 56.4 million, 63.4 million, and 43.7 million yuan for the same years, representing 35.62%, 88.23%, and 6.42% of the disclosed total profits [1][4]. - The company also failed to reasonably recognize losses related to a project, leading to an additional profit inflation of 4.55 million yuan in 2022, which was 6.34% of the disclosed total profits for that year [1]. Group 2: Regulatory Actions - Changjiang Pharmaceutical and 14 responsible individuals have been penalized, with the company fined 10 million yuan and the individuals collectively fined 31 million yuan [2]. - The chairman and former general manager, Luo Ming, was fined 5 million yuan and banned from the securities market for life [2][5]. - The company has been warned that its stock may be subject to delisting due to the continuous financial misreporting over three years [3][6]. Group 3: Financial Health - As of the end of 2024, the company's net assets were reported at -433 million yuan, and by the end of the third quarter of 2025, they had further declined to -643 million yuan [6]. - If the audited net assets for 2025 remain negative, the company will face financial delisting [6]. - The company has initiated pre-restructuring efforts but faces challenges due to ongoing investigations and the risk of major violations leading to delisting [6].