Core Viewpoint - China National Pharmaceutical Group (国药集团) has issued a statement regarding its relationship with China Medicinal Materials Corporation (药材股份), emphasizing that it has initiated legal proceedings due to serious infringement by the latter [1][4]. Group 1: Shareholding and Ownership - China National Pharmaceutical Group's subsidiary, China Traditional Chinese Medicine Co., Ltd. (国药中药), has publicly transferred 25% of its shares in China Medicinal Materials Corporation to Shanghai Tianyue Tenghua Trading Service Co., Ltd. and will complete the share cancellation by September 30, 2025 [3]. - After the transfer, China National Pharmaceutical Group and its subsidiary will no longer hold any shares in China Medicinal Materials Corporation, and there will be no equity or control relationship between them [3][4]. Group 2: Legal Actions and Infringement - China Medicinal Materials Corporation has repeatedly used the trademarks and names of China National Pharmaceutical Group without authorization, constituting serious infringement, leading to the initiation of legal proceedings [4]. - The company has been urged to cease all unauthorized use of China National Pharmaceutical Group's trademarks and names, with a warning of legal consequences for any misrepresentation of association with the group [4]. Group 3: Historical Context and Current Status - China Medicinal Materials Corporation, originally named Huahao Pharmaceutical Co., Ltd., was established in 2000 with a registered capital of 100.58 million RMB and currently has multiple negative tags, including operational abnormalities and restrictions on high consumption [4][5]. - The company has faced legal disputes and complaints regarding unpaid debts to construction units and rural collective enterprises, indicating ongoing operational challenges [4][6].

Core Viewpoint - China National Pharmaceutical Group (Sinopharm Group) has issued a statement regarding its severed ties with China Medicine Holdings Co., Ltd. (China Medicine), emphasizing that it has initiated legal proceedings against China Medicine for serious infringement of its rights [1][4]. Group 1: Company Relationship and Legal Actions - Sinopharm Group's subsidiary, China Medicine, has transferred its 25% stake in China Medicine Holdings to Shanghai Tianyue Tenghua Trading Service Co., Ltd., and will complete the deregistration of this stake by September 30, 2025 [3][4]. - Following the transfer, China Medicine will no longer hold any equity in China Medicine Holdings, and there will be no equity or control relationship between Sinopharm Group, China Medicine, and China Medicine Holdings [4]. - Sinopharm Group has never authorized China Medicine Holdings or its subsidiaries to use its trademarks or engage in activities under its name, and it will pursue legal action against any unauthorized use of its name or trademarks [4][5]. Group 2: Historical Context and Company Status - Sinopharm Group has previously issued multiple statements condemning China Medicine Holdings for unauthorized use of its name and trademarks, as well as for engaging in unfair competition and other legal disputes [5][7]. - China Medicine Holdings, originally named Huahao Pharmaceutical Co., Ltd., was established in 2000 with a registered capital of 100.58 million RMB and currently has multiple negative labels, including operational abnormalities and being a subject of enforcement actions [5][6]. - As of 2023 and 2024, China Medicine Holdings has reported zero employees enrolled in social insurance, indicating potential operational challenges [5][6].