Core Viewpoint - The suspension of production at Tianjin Weiming Biopharmaceutical Co., Ltd. has led to Shandong Weiming Pharmaceutical Co., Ltd. being placed under other risk warnings, resulting in a significant drop in stock price and market capitalization [1][2]. Group 1: Company Impact - Tianjin Weiming, a key subsidiary, accounted for 60.09% of Weiming Pharmaceutical's revenue and 9.8% of its net profit in 2024, indicating its critical role in the company's financial performance [2]. - The suspension of Tianjin Weiming's production is expected to have a substantial impact on Weiming Pharmaceutical's operations, as the subsidiary's previous issues with product quality have already affected sales and revenue [2][4]. - The company reported a revenue decline of 57.84% in Q1 2025, with a net loss of 36.85 million yuan, reflecting ongoing financial struggles exacerbated by the suspension [4]. Group 2: Regulatory and Market Context - The Tianjin Municipal Drug Administration found that Tianjin Weiming's production did not comply with the Good Manufacturing Practice (GMP) standards, leading to the suspension of its production and sales [1][2]. - Prior to the suspension, Tianjin Weiming faced scrutiny when a batch of its interferon α2b spray was flagged for not meeting biological activity standards, resulting in multiple regions halting purchases [2]. - In December 2023, Tianjin Weiming won a bid for the exclusive supply of interferon α2b spray at a price of 33.58 yuan for a specific volume, but this was later revoked in April 2025, further impacting the company's market position [3].

Core Viewpoint - Tianjin Weiming Bio-Pharmaceutical Co., Ltd. has been subjected to production and sales suspension measures by the Tianjin Municipal Drug Administration due to non-compliance with Good Manufacturing Practice (GMP) standards, significantly impacting the company's operations and financial performance [1][2][3] Group 1: Suspension Overview - The suspension was initiated after a GMP compliance inspection revealed that Tianjin Weiming's production practices did not meet regulatory requirements, leading to a halt in production and sales to mitigate quality and safety risks [1][2] - In 2024, Tianjin Weiming generated revenue of RMB 216.57 million and incurred a net loss of RMB 14.00 million, accounting for 60.09% of the company's total revenue and 9.8% of the consolidated net profit [1][2] Group 2: Impact on the Company - The suspension of Tianjin Weiming's operations is expected to adversely affect the company's sales and cash flow during the remediation period, which is anticipated to last no longer than three months [2][3] - The company has established a special rectification team and is actively cooperating with regulatory authorities to address the identified deficiencies [2]