Xin Lang Cai Jing·2026-02-27 01:23Core Viewpoint - Long Pharmaceutical Holdings (长药控股) is facing legal actions due to false financial reporting and has been penalized by the China Securities Regulatory Commission (CSRC) for various violations, leading to potential compensation claims from affected investors [1][7]. Group 1: Legal Actions and Compensation Claims - The Wuhan Intermediate People's Court has accepted a compensation claim case against Long Pharmaceutical Holdings, with previous cases also being accepted, indicating ongoing legal proceedings [1][3]. - Investors who purchased Long Pharmaceutical Holdings stock between March 30, 2019, and April 30, 2024, or between April 28, 2022, and November 8, 2025, are eligible to file for compensation [3][9]. Group 2: Financial Misconduct - Long Pharmaceutical Holdings has been found to have inflated revenues and profits in its financial reports from 2021 to 2023, with reported inflated revenues of 215.32 million, 283.74 million, and 233.63 million yuan, representing 9.12%, 17.57%, and 19.51% of the disclosed revenues respectively [2][8]. - The company also inflated total profits by 56.40 million, 63.38 million, and 43.70 million yuan during the same periods, accounting for 35.62%, 88.23%, and 6.42% of the reported total profits [2][8]. Group 3: Related Company Violations - The subsidiary of Long Pharmaceutical Holdings, Hubei Changjiang Source Pharmaceutical Co., and Hubei Xinfeng Pharmaceutical Co. engaged in creating false inventory and sales documents, leading to the recognition of non-existent sales [2][8]. - The company failed to properly recognize losses related to a project in 2022, further contributing to the inflated profit figures in its annual report [2][8].