Core Viewpoint - The stock price of Shenqi Pharmaceutical (600613.SH) experienced a significant decline, dropping over 5% after the company was implicated in financial fraud by the Shanghai Securities Regulatory Bureau [2][3]. Financial Misconduct - Shenqi Pharmaceutical was found to have misappropriated sales expenses amounting to 44.83 million yuan through a discontinued "basic drug promotion plan" and fabricated accounts receivable by transferring funds through employee personal accounts [4]. - This fraudulent activity led to the company reversing credit impairment provisions of 44.83 million yuan, resulting in discrepancies in the 2023 annual report [5]. Financial Performance - In 2023, Shenqi Pharmaceutical reported a revenue of 2.341 billion yuan, a year-on-year decrease of 2%, while the net profit attributable to shareholders was 57 million yuan, reflecting a year-on-year increase of 17.41% [7]. - For the first half of 2025, the company achieved a revenue of 961 million yuan, a year-on-year decline of 13.47%, and a net profit of 32.81 million yuan, down 13.29% compared to the previous year [8]. Regulatory Actions - The Shanghai Securities Regulatory Bureau imposed corrective administrative measures on Shenqi Pharmaceutical, issuing warning letters to the then Chairman Zhang Taotao, General Manager Feng Bin, and Chief Financial Officer Chen Zhimian due to the irregularities in accounts receivable handling [7]. - The company has committed to rectifying the issues and submitting a corrective report within the stipulated timeframe to prevent future occurrences [7]. Company Background - Founded in 1983, Shenqi Pharmaceutical specializes in the research, production, and sales of pharmaceuticals, with products covering various therapeutic areas including oncology, respiratory, cardiovascular, and gynecological treatments [7].

Core Insights - The stock price of Shenqi Pharmaceutical (600613.SH) dropped over 7% in intraday trading due to receiving an administrative regulatory decision from the Shanghai Securities Regulatory Bureau regarding financial fraud [1][3] - The company misappropriated sales expenses amounting to 44.8383 million yuan through a discontinued "basic drug promotion plan" and created fictitious accounts receivable, leading to discrepancies in the 2023 annual report [1][3] Financial Performance - In 2023, Shenqi Pharmaceutical reported operating revenue of 2.341 billion yuan, a year-on-year decrease of 2%, while net profit attributable to shareholders was 57.007 million yuan, an increase of 17.41% [3] - For the first half of 2025, the company achieved operating revenue of 961 million yuan, a year-on-year decline of 13.47%, and net profit of 32.8081 million yuan, down 13.29% [4] Regulatory Actions - The Shanghai Securities Regulatory Bureau mandated corrective actions for Shenqi Pharmaceutical, issuing warning letters to the then Chairman Zhang Taotao, General Manager Feng Bin, and Chief Financial Officer Chen Zhimian [3] - The company acknowledged the issue stemmed from improper accounting treatment of accounts receivable and committed to rectifying the situation and submitting a corrective report within the stipulated timeframe [3] Company Background - Founded in 1983, Shenqi Pharmaceutical specializes in the research, production, and sales of pharmaceuticals, with products covering various therapeutic areas including oncology, respiratory, cardiovascular, and gynecological treatments [3]