Affected investors can register their claims on the Sina Investor Rights Protection Platform: http://wq.finance.sina.com.cn/
1. Regulatory Pre-Penalty Notice On December 12, Humanwell Healthcare (Group) Co., Ltd. (600079) announced that it had received a "Prior Notice of Administrative Penalty" from the Hubei Bureau of the China Securities Regulatory Commission (CSRC).
According to the investigation, the company's annual financial reports contained false records, triggering the implementation of a Special Treatment (ST) designation. Starting tomorrow, the company's stock will be renamed "ST Humanwell," with daily price fluctuations limited to 5%. This marks a historic turning point for the pharmaceutical giant, once hailed as the "leader in anesthesia," now shrouded in financial misconduct.
Lawyer Liu Peng from Shanghai Huzi Law Firm updated the eligibility criteria for compensation claims. Investors who purchased shares between April 27, 2021, and October 22, 2024 (inclusive) and sold or held them after October 23, 2024, incurring losses, are encouraged to participate in the claim process. Previously received cases will also be filed in batches.
2. Financial Fraud and Proposed Penalties The investigation revealed that Humanwell Healthcare manipulated its financial statements by setting up seemingly independent entities that were actually controlled but excluded from consolidated reports. Jinke Ruida served as a platform for asset divestment, while Wuhan Ruicheng and Zhiying Xincheng were also under the company's control.
However, these entities were not included in consolidated financial statements until September 2022, distorting financial data for multiple years.
Additionally, the company engaged in non-operational fund occupation totaling RMB 12.785 billion between 2020 and March 2022. These transactions, arranged by controlling shareholder Modern Group, were never disclosed in a timely manner.
Another major violation involved undisclosed related-party transactions. In March 2022, four subsidiaries of Humanwell Healthcare jointly purchased property assets from Kemei Lide for RMB 1.645 billion, accounting for 9.17% of the company's net assets that year. This transaction was omitted from the 2022 annual report.
More critically, Modern Group concealed its relationship with Kemei Lide, making it difficult for Humanwell Healthcare to identify the transaction's related-party nature. The Hubei CSRC proposed fines totaling RMB 36.7 million for the parties involved.
(Contributed by Lawyer Liu Peng of Shanghai Huzi Law Firm, specializing in securities rights protection for 19 years. With a 99.2% success rate, Liu has represented over 300 listed companies and handled more than 14,000 cases, securing maximum compensation for investors.)
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