Investors File Lawsuit Against Nuotai Biotech for Securities Fraud Following Regulatory Penalty

A securities fraud lawsuit filed by investors against Nuotai Biotech has been accepted by the court, with the claim still within the statutory limitation period. The case is being handled by legal representatives.

On December 18, 2025, Nuotai Biotech announced it had received a "Decision on Administrative Penalty" from the regulatory authority. Violations in information disclosure by listed companies severely disrupt market order and infringe upon the legitimate rights and interests of shareholders. According to relevant laws and regulations, affected investors are entitled to file claims to seek compensation for their losses.

The eligibility criteria for the claim require that investors purchased the stock between April 28, 2022, and October 23, 2024 (inclusive), and subsequently sold or held the stock after October 24, 2024, incurring losses.

According to the penalty decision, the company's 2021 annual report contained false entries, including inflated operating revenue by 30 million yuan and inflated total profit by 25.9516 million yuan. Additionally, the prospectus for the 2022 convertible corporate bond offering contained significant false information. The regulatory authority has ordered the company to make corrections, issued a warning, and imposed a fine of 47.4 million yuan. Relevant senior executives were also penalized, bringing the total penalties to 76.2 million yuan.

Specifically, the penalties are primarily related to a 30 million yuan technology transfer transaction between Nuotai Biotech and Zhejiang Huabei Pharmaceutical Co., Ltd. This issue impacted the 2021 annual report and subsequent documents for the convertible bond issuance.

Due to the falsification of 2021 financial data, which was referenced in the prospectus disclosed in 2023, the regulator determined that the "Financial Accounting Information" section of the prospectus contained significant falsehoods.

Financial fraud acts like a ticking time bomb in the financial system. Without the authenticity of financial data, the market's pricing function and resource allocation efficiency, which are essential for its survival, face devastating consequences. Affected investors are encouraged to actively participate in the claim to recover part of their investment losses.