Core Viewpoint - The company, Chuangyi Information, has received a notice of administrative penalty from the Sichuan Regulatory Bureau of the China Securities Regulatory Commission, indicating that its stock will be subject to additional risk warnings due to accounting irregularities [1] Group 1: Regulatory Actions - On September 19, 2025, the company received an administrative penalty notice, leading to its stock being placed under additional risk warnings starting September 23, 2025 [1] - The company's stock will be suspended for one day on September 22, 2025, and will resume trading under the name "ST Chuangyi" [1] Group 2: Financial Misstatements - The notice states that in November 2022, the company engaged in sales activities without having control over the goods, leading to improper revenue recognition [1] - The company overstated its revenue by 268 million yuan for the 2022 annual report and 125 million yuan for the 2023 semi-annual report, which accounted for 12.22% and 15.84% of the reported revenues, respectively [1]

Core Viewpoint - Hubei Guangji Pharmaceutical Co., Ltd. faces a fine of 3.1 million yuan due to revenue recognition violations, with ongoing losses in recent years amid industry competition [1][2]. Group 1: Regulatory Issues - The violation dates back to October 25, 2024, when the company received a notice from the China Securities Regulatory Commission (CSRC) regarding suspected illegal information disclosure [2]. - Guangji Pharmaceutical's subsidiary, Hubei Guangji Jikang Pharmaceutical Co., Ltd., improperly recognized revenue using the gross method instead of the net method, leading to inflated revenue figures for the first three quarters of 2022 [2]. - The Hubei Securities Regulatory Bureau plans to impose a fine of 1.5 million yuan on the company, with additional fines of 800,000 yuan each for the chairman and the CFO [2]. Group 2: Financial Performance - Guangji Pharmaceutical has reported continuous losses, with a net loss of 140 million yuan in 2023, which expanded to 295 million yuan in 2024, and a further loss of 36.26 million yuan in the first quarter of 2025 [5][6]. - The company attributes its losses to increased R&D investments, intensified industry competition, and low market prices for its main products, particularly feed-grade vitamins B2 and B12 [5][6]. - The company has acknowledged that its production capacity from recent acquisitions has not been fully utilized, contributing to high costs and operational expenses [5]. Group 3: Company Response and Future Strategies - Following the revenue recognition issue, the company plans to enhance its internal controls and financial management practices to prevent future violations [6]. - Guangji Pharmaceutical is focusing on improving the competitiveness of its main products and optimizing its existing assets to mitigate losses [6]. - The company is also undergoing management reforms to address the challenges posed by low market prices and shrinking demand [6].