On January 16, Zhejiang Hisun Pharmaceutical Co.,Ltd. announced that it had received a warning letter issued by the Zhejiang Securities Regulatory Bureau. The letter pointed out that the company had corrected some financial data in its annual reports for the period from 2021 to 2024, involving items such as operating revenue, operating costs, and investment income. The financial information in the relevant reports was found to be inaccurate and unreliable. The regulatory body imposed supervisory measures, issuing a warning letter to the company and the responsible executives at the time, and recorded the incident in the securities and futures market integrity archive.
This regulatory action is primarily related to the company's previously disposed pharmaceutical distribution assets. In August 2025, Hisun Pharma announced its intention to publicly list for transfer a 100% equity stake in its subsidiary Zhejiang Pharmaceutical Industry Co., Ltd., aiming to refocus on its core pharmaceutical manufacturing business. Concurrently with the transfer announcement, the company disclosed prior accounting errors related to the subsidiary's raw material trading business and made retrospective adjustments to the financial statements for the corresponding years. The matters involved in this warning letter pertain precisely to these corrections.
Information shows that the company's current President, Xiao Weihong, assumed his position in November 2023 and took over as Chairman in October 2024. The business operations related to the financial discrepancies mainly occurred before his tenure. This regulatory measure is viewed as a consolidated handling of the company's historical legacy issues.
The company stated in its announcement that it attaches great importance to the issues raised in the warning letter, will carry out rectifications as required, strengthen the study of relevant laws and regulations, and enhance the standard of compliant operations and the quality of information disclosure.
Since the new management team took office, Hisun Pharma has undertaken a series of business adjustments. Regarding asset disposals, the company signed an agreement with Guangzhou Pharmaceutical Holdings Limited in December 2025, completing the transfer of the provincial pharmaceutical company's equity for 500.5 million yuan. In terms of business layout, recent moves include: the establishment of Yunsheng Synthesis in June 2025, marking an entry into the synthetic biology field; signing a product cooperation agreement with Shenzhen Aistarget Pharmaceutical Technology Co., Ltd. in September; forming a joint venture with Zhejiang Shenzhou Pharmaceutical Technology Co., Ltd. in October to focus on complex injections; and in January 2026, its subsidiary Hisun Animal Health collaborated with Zhongyu Pet Food to enter the pet prescription diet market.
Market analysts indicate that today's announcement suggests that Hisun Pharma's historical legacy issues have been largely resolved. Combined with the divestiture of non-core assets and strategic moves into new areas, this demonstrates the company's determination to restructure its business.
Comments