Core Viewpoint - Zhejiang Haizheng Pharmaceutical Co., Ltd. has been criticized by the Shanghai Stock Exchange for providing false and inaccurate financial information in its annual reports from 2021 to 2024, leading to regulatory actions against the company and its responsible personnel [3] Group 1: Regulatory Actions - The Shanghai Stock Exchange issued a public criticism against Haizheng Pharmaceutical and six related individuals due to financial inaccuracies [3] - The Zhejiang Securities Regulatory Bureau issued a warning letter to Haizheng Pharmaceutical, marking the responsible individuals in the securities and futures market integrity archives [3] - The warning letter highlighted that the company had to adjust its financial data for the years 2021 to 2024, indicating previous disclosures were misleading [3] Group 2: Financial Adjustments - The financial discrepancies were primarily due to the lack of sufficient commercial substance and rationality in the raw material trading business of its subsidiary, Zhejiang Pharmaceutical Industry Co., Ltd. [4] - The company announced multiple adjustments to its consolidated financial statements for the years 2021 to 2023, including reductions in operating income and costs, as well as increases in investment income [4] Group 3: Business Strategy - To optimize its business structure and focus on core strengths, Haizheng Pharmaceutical plans to sell Zhejiang Pharmaceutical Industry Co., Ltd. by the end of 2025 [4] - Guangzhou Pharmaceutical Co., Ltd. has been identified as the qualified buyer, with a transfer price set at 505 million yuan [4]