Changyao Group(SZ:300391) Xin Lang Cai Jing·2025-12-29 03:23Core Viewpoint - Changjiang Pharmaceutical Holdings Co., Ltd. (*ST Changyao) is facing administrative penalties from the China Securities Regulatory Commission (CSRC) for financial misconduct, including false reporting of revenue and profits over multiple years [2][6]. Group 1: Financial Misconduct - The company acquired 52.75% of Hubei Changjiang Xing Pharmaceutical Co., Ltd. in November 2020, which was subsequently consolidated into its financial statements [2][6]. - From 2021 to 2023, the subsidiaries of Changjiang Xing fabricated inventory and sales documents, leading to inflated revenues of CNY 215.32 million, CNY 283.74 million, and CNY 233.63 million, representing 9.12%, 17.57%, and 19.51% of reported revenues respectively [2][6]. - The inflated total profits during the same period were CNY 56.40 million, CNY 63.38 million, and CNY 43.71 million, accounting for 35.62%, 88.23%, and 6.42% of the reported total profits [2][6]. Group 2: Potential Consequences - The company may face mandatory delisting due to continuous false reporting of financial indicators over three years, as per the Shenzhen Stock Exchange rules [3][7]. - On November 7, 2025, the company announced it was under investigation for suspected false reporting of financial data [8]. Group 3: Investor Compensation - A law firm is collecting claims from investors who purchased shares between April 28, 2022, and November 6, 2025, and either sold or held the shares after November 7, 2025 [4][8]. - Investors may seek civil compensation for losses incurred due to the company's fraudulent activities, which could include differences in investment, commissions, and stamp duties [8].