Core Viewpoint - Fangsheng Pharmaceutical's controlling shareholder Zhang Qinghua has been placed under residential surveillance due to past insider trading activities, which resulted in losses exceeding 6 million yuan. The company asserts that this matter only pertains to Zhang personally and will not affect its daily operations or financial status [2][3]. Company Overview - Fangsheng Pharmaceutical focuses on innovative traditional Chinese medicine and was listed in 2014. Its core products address various medical fields, including cardiovascular, pediatric, musculoskeletal, gynecological, respiratory, and anti-infection treatments [3]. Insider Trading Details - Zhang Qinghua received a notice from the China Securities Regulatory Commission (CSRC) regarding insider trading in June 2019, followed by an administrative penalty in January 2021. The insider trading was linked to a significant asset restructuring involving Haikou Qili Pharmaceutical Co., which occurred between December 2017 and February 2018 [3][4]. - During the sensitive period, Zhang and others executed trades that led to a total loss of approximately 629.95 thousand yuan, with Zhang facing a fine of 600 thousand yuan [4]. Shareholding Structure - As of the end of 2024, Zhang Qinghua directly holds 35.53% of Fangsheng Pharmaceutical's shares, while his controlled company holds an additional 2.08% [5]. Recent Financial Performance - In 2024, Fangsheng Pharmaceutical reported a revenue of 1.777 billion yuan, marking a year-on-year increase of 9.15%, and a net profit of 255 million yuan, up 36.61%. In the first quarter of 2025, the company generated 418 million yuan in revenue, a decrease of 4.6%, but the net profit rose by 25.74% to 88 million yuan [5].