Core Viewpoint - Jiangsu Senxuan Pharmaceutical Co., Ltd. announced that its subsidiary, Ningxia Senxuan Pharmaceutical Co., Ltd., and its safety and environmental protection department head, Huang Xionghu, are being prosecuted for environmental pollution, with a recommended fine of 400,000 to 600,000 yuan [1][4]. Group 1: Legal Proceedings - Ningxia Senxuan is a subsidiary of Jiangsu Senxuan, primarily engaged in the production of pesticide intermediates [3][8]. - The prosecution stems from an incident on February 20, 2024, where due to a frozen wastewater discharge pipeline, Huang Xionghu arranged for untreated wastewater to be illegally disposed of, resulting in the dumping of approximately 150 tons of toxic waste [3][8]. - The public prosecutor claims that this act caused property damage amounting to 857,897.97 yuan [3][8]. Group 2: Company Background and Operations - Ningxia Senxuan was established in November 2018 with a registered capital of 70 million yuan and is a subsidiary of the state-owned enterprise Jinghua Pharmaceutical Group [4]. - The company focuses on the research, production, and sales of pharmaceuticals and intermediates, with Lin Guoping as the legal representative and Zhu Shizhang as the chairman [4]. Group 3: Impact on Company Operations - Following the incident, the company has taken corrective actions, including ceasing operations for rectification, which was later approved by the local environmental authority for resumption of production [11]. - The company emphasizes its commitment to compliance and environmental protection, stating it will manage the situation proactively and maintain transparency regarding the legal proceedings [11]. Group 4: Financial Implications - As of the announcement date, the case has not yet gone to trial, and the exact fine amount remains uncertain [12]. - The company plans to handle the financial implications according to accounting standards and will disclose relevant information as required [12].

Group 1 - The company, Jinghua Pharmaceutical Group Co., Ltd., is involved in a legal case where its subsidiary, Ningxia Senxuan Pharmaceutical Co., Ltd., is the defendant in a lawsuit initiated by Yinchuan Railway Transportation Procuratorate [1][2] - The lawsuit concerns the illegal disposal of approximately 150 tons of toxic waste, resulting in damages amounting to 857,897.97 yuan [2] - The company holds a 72.31% stake in Senxuan Pharmaceutical, which in turn owns 51% of Ningxia Senxuan, indicating a significant ownership structure that may influence the company's financials [3] Group 2 - As of the announcement date, there are no other significant lawsuits or arbitration matters involving the company or its subsidiaries that require disclosure [3] - The potential impact of the lawsuit on the company's current and future profits is considered minimal, as the lawsuit amount is small and is not expected to significantly affect the company's net profit for 2025 [3]