xinbang phar.(SZ:002390) Xin Lang Cai Jing·2026-01-16 09:12Core Viewpoint - Xinfang Pharmaceutical has been prosecuted for alleged unit bribery, which may adversely affect its profits, and the company is taking steps to mitigate related risks [1][6]. Group 1: Litigation Risk - The prosecution of Xinfang Pharmaceutical is linked to its subsidiary, Keke Pharmaceutical, which is a significant profit source, generating 2.278 billion yuan in revenue and 94.5025 million yuan in net profit in 2023, accounting for 35.26% and 26.71% of the parent company's revenue and net profit, respectively [2][7]. - If Keke Pharmaceutical is convicted, Xinfang may face fines and operational disruptions, with the company acknowledging potential negative impacts on profits, although the exact extent is currently uncertain [2][7]. Group 2: Governance Concerns - The involvement of the company's actual controller, An Huailue, raises concerns about internal control weaknesses, as he holds over 24% of the shares and serves as chairman and general manager of Keke Pharmaceutical [3][8]. - The case highlights deficiencies in the company's governance and compliance mechanisms, which have failed to prevent risks associated with key personnel [3][8]. Group 3: Performance Pressure - Xinfang Pharmaceutical's performance is under pressure, with a reported revenue of 4.266 billion yuan for the first three quarters of 2025, a year-on-year decline of 6.55%, and a net profit of 152 million yuan, down 13.74% [4][9]. - The company has total assets of 8.592 billion yuan, with accounts receivable of 2.441 billion yuan, indicating concerns about cash collection capabilities [4][9]. - The combination of declining performance and litigation risks adds uncertainty to the company's future, especially if Keke Pharmaceutical faces penalties that could restrict its operations and impact overall revenue and profit structure [4][9].