证监会严肃查处*ST长药严重财务造假案件

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has imposed severe penalties on Changjiang Pharmaceutical Holdings Co., Ltd. (*ST Changyao) for serious financial fraud, including inflated revenue and profits over three consecutive years, leading to potential delisting due to major violations [1][2]. Group 1: Financial Misconduct - *ST Changyao has been found to have inflated revenue by CNY 215 million, CNY 284 million, and CNY 234 million for the years 2021, 2022, and 2023 respectively, representing 9.12%, 17.57%, and 19.51% of the reported revenue for those years [2]. - The company also inflated total profits by CNY 56.4 million, CNY 63.4 million, and CNY 43.7 million for the same years, accounting for 35.62%, 88.23%, and 6.42% of the reported profits [2]. - In 2022, the company failed to reasonably recognize losses related to a project, resulting in an additional profit inflation of CNY 4.55 million, which was 6.34% of the reported profit for that year [2]. Group 2: Regulatory Actions and Consequences - The CSRC plans to impose a fine of CNY 10 million on *ST Changyao and a total of CNY 31 million on 14 responsible individuals, summing up to a total penalty of CNY 41 million [1]. - The former general manager of *ST Changyao, Luo Ming, will face a lifetime ban from the securities market [1]. - The Shenzhen Stock Exchange will initiate delisting procedures due to the company's serious violations [1][2]. Group 3: Financial Health and Future Risks - As of the end of 2024, the company's net assets attributable to shareholders are projected to be -CNY 433 million, and by the end of the third quarter of 2025, they are expected to be -CNY 643 million [3]. - If the audited net assets for the end of 2025 are negative, the company will face financial delisting risks [3]. - The CSRC is also investigating the auditing firms involved with *ST Changyao, which has had the same auditing firm for five consecutive years, raising concerns about compliance and oversight [3].