Investors Win Lawsuit Against Hainan Poly Pharm.Co.,Ltd. (300630)

Deep News12-23 10:51

Affected investors can register claims against Hainan Poly Pharm.Co.,Ltd. (300630) through the investor rights protection platform.

Xu Feng, a securities litigation lawyer from a Shanghai-based law firm, noted that the investor compensation case related to Hainan Poly Pharm.Co.,Ltd.'s false statements has made significant progress. The Haikou Intermediate People's Court ruled in favor of investors, granting them partial compensation in the first-instance judgment.

The legal team continues to file additional claims and is accepting further investor mandates. On December 18, 2025, lawyers submitted another batch of cases to the Haikou court.

On March 21, 2025, Hainan Poly Pharm.Co.,Ltd. disclosed that it received an administrative penalty decision from the China Securities Regulatory Commission (CSRC) on January 4, 2025. The investigation found that from 2021 to 2022, the company falsely recorded revenue and profits by fabricating sales of finished drugs and raw materials.

In 2021, the company overstated revenue by RMB 436.6 million (28.94% of reported revenue), with overstated profits totaling RMB 308 million (65.88% of reported profits). In 2022, it inflated revenue by RMB 456.6 million (25.28% of reported revenue), with overstated profits reaching RMB 387.4 million (88.27% of reported profits).

Additionally, the company improperly accounted for trade businesses involving acetyl iodide, iodide (for ioversol use), and yeast extracts, leading to further overstated revenue of RMB 78 million in 2021 and RMB 59.3 million in 2022.

In total, Hainan Poly Pharm.Co.,Ltd. overstated 2021 revenue by RMB 514.6 million (34.11% of reported revenue) and 2022 revenue by RMB 515.9 million (28.56% of reported revenue). The company’s 2021 and 2022 annual reports contained false records.

Lawyer Xu Feng advises that investors who purchased Hainan Poly Pharm.Co.,Ltd. shares between April 26, 2022, and April 17, 2024, and held or sold them after April 17, 2024, may still file claims.

(Note: The legal team operates on a no-win-no-fee basis.)

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