Core Viewpoint - Zhejiang Dongya Pharmaceutical Co., Ltd. is facing regulatory scrutiny due to discrepancies in the use of raised funds compared to what was disclosed in its IPO prospectus, leading to a warning for its former board secretary and ongoing financial challenges for the company [1][2][3]. Group 1: Regulatory Issues - Zhejiang Securities Regulatory Bureau found that Dongya Pharmaceutical's actual use of raised funds did not align with the disclosures made in its IPO prospectus, and the company failed to follow internal review procedures for these changes [2]. - The company has been ordered to rectify these issues, and the violations will be recorded in the securities market's integrity archives [2][3]. Group 2: Financial Performance - Dongya Pharmaceutical's revenue for 2022, 2023, 2024, and the first half of 2025 were reported at 1.18 billion, 1.36 billion, 1.20 billion, and 416 million respectively, with year-on-year growth rates of 65.62%, 15.00%, -11.66%, and -35.85% [4]. - The net profit attributable to shareholders for the same periods was 104 million, 121 million, -101 million, and -30.23 million, with year-on-year growth rates of 52.46%, 16.11%, -183.02%, and -193.09% [4]. - The company's debt-to-asset ratio has increased from 25.56% in 2022 to 47.70% in the first half of 2025, indicating rising financial leverage [4]. Group 3: Business Challenges - Dongya Pharmaceutical's core antibacterial drug business is under significant pressure due to the government's "antibiotic restriction orders," which have limited the market space for antibacterial drugs [5][6]. - The company has attempted to implement a "raw material drug formulation integration" strategy, but progress has been slow, with only one of over ten submitted formulations receiving approval [7]. - The existing product structure remains heavily reliant on antibacterial drugs, exposing the company to substantial market and policy risks [7].