The China Securities Regulatory Commission (CSRC) imposed strict administrative penalties on ChiNext-listed Hainan Puli Pharmaceutical Co., Ltd. (*ST Puli, 300630) for material false statements in its 2021 and 2022 annual reports that meet the criteria for compulsory delisting for major violations. The Shenzhen Stock Exchange will initiate the procedure to terminate the company’s share listing in accordance with its rules. CSRC found the company overstated total profits by more than CNY 500 million across the two years, with the inflated amount exceeding 50% of the reported figures. The regulator said administrative penalties and mandatory delisting are not the end of enforcement, and it will work with relevant authorities to pursue “full-spectrum” accountability, transfer suspected criminal leads to public security agencies in line with the Criminal Law and applicable case-filing and prosecution standards, and investigate the professional conduct of the intermediaries involved. The China Securities Investor Services Center will support eligible investors seeking redress through tools including litigation support, model judgments, mediation and representative actions.
China Securities Regulatory Commission 2025-03-21
China Securities Regulatory Commission penalises *ST Puli for inflating profits by over CNY 500 million triggering Shenzhen Stock Exchange delisting process
The China Securities Regulatory Commission (CSRC) imposed strict penalties on Hainan Puli Pharmaceutical Co., Ltd. for material false statements in its 2021 and 2022 reports, leading to compulsory delisting. The Shenzhen Stock Exchange will proceed with terminating the company's share listing. CSRC will collaborate with authorities for comprehensive accountability, including potential criminal proceedings and support for investor redress.