Guizhou Securities Regulatory Bureau is lawfully and seriously investigating the financial fraud case of Guizhou Baoling.

Recently, the Guizhou Regulatory Bureau of the China Securities Regulatory Commission imposed administrative penalties and market entry restrictions on Guizhou Bailin Enterprise Group Pharmaceutical Co., Ltd. for suspected false recording of financial data in their periodic reports. It was found that Guizhou Bailin did not base their current sales expenses on the incurred rights and obligations, but instead recognized current sales expenses based on the principle of revenue cost expense ratio, resulting in an underestimation of sales expenses during the period from 2019 to 2021, leading to an inflated profit of 655 million yuan, and an overestimation of sales expenses in 2023, resulting in a reduction of profit by 459 million yuan. Guizhou Bailin's years of financial fraud seriously violated securities laws and regulations. The Guizhou Regulatory Bureau intends to order Guizhou Bailin to make corrections, issue a warning, and impose a fine of 10 million yuan; intend to issue warnings to 10 responsible individuals including Jiang Wei, and impose a total fine of 15.6 million yuan; at the same time, intend to take market entry restrictions on Jiang Wei for 10 years. Financial fraud seriously undermines the market's "three public" principles and harms the legitimate rights and interests of investors. The Guizhou Regulatory Bureau will resolutely implement the decisions and deployments of the China Securities Regulatory Commission's Party Committee, focus on improving the effectiveness and deterrence of regulatory enforcement, adhere to a clear stance of "zero tolerance" towards financial fraud, target major, severe, and key areas, closely monitor "key minorities" such as actual controllers, controlling shareholders, directors, executives, and intermediary institutions, enforce laws strictly and fairly, resolutely ensure that regulation has "sharp teeth and thorns," and is sharp and angular, to effectively safeguard the stability and long-term development of Guizhou's capital market with strong and solid law enforcement.