CSRC: Strict administrative penalties will be imposed on Hainan Poly Pharm (300630.SZ) for major financial fraud.

On March 21, the China Securities Regulatory Commission (CSRC) strictly imposed administrative penalties on Hainan PuLi Pharmaceutical Co., Ltd., a company listed on the Growth Enterprise Market of the Shenzhen Stock Exchange (referred to as *ST Puli, 300630.SZ). *ST Puli's annual reports for 2021 and 2022 contained significant false records, with a total profit overstatement of more than 500 million yuan in two consecutive years, accounting for over 50%, triggering a major violation leading to mandatory delisting. Today, the Shenzhen Stock Exchange will initiate the delisting process for *ST Puli in accordance with the rules. For listed companies and relevant parties involved in serious financial fraud, administrative penalties and mandatory delisting are not the end. The CSRC will work with relevant departments to implement comprehensive and multi-dimensional accountability. For possible criminal clues, the principle of transferring responsibility will be strictly followed, and cases will be transferred to public security organs in accordance with the provisions of the Criminal Law and the standards for public security organs' jurisdiction over criminal cases established by the Supreme People's Procuratorate and the Ministry of Public Security. For eligible investors who suffer losses due to financial fraud by listed companies, the China Securities Investment Protection Fund Corporation will actively play a professional role, using various methods such as litigation support, exemplary judgments, professional mediation, and representative litigation to help investors safeguard their rights in accordance with the law. At the same time, the CSRC will also investigate the professional conduct of relevant intermediary agencies. This article is compiled from the official website of the China Securities Regulatory Commission. Editor: Liu Jiayin at GMTEight.