Following the investigations launched by the China Securities Regulatory Commission (CSRC) against Wuhan Dangdai Technology Industry Group Co., Ltd. (referred to as "Dangdai Group") and Tianfeng Securities on November 28, Humanwell Healthcare (Group) Co., Ltd. was officially placed under ST (Special Treatment) status on December 16 due to multiple alleged violations. Its A-share ticker was changed to "ST Humanwell."
Previously, on December 12, Humanwell Healthcare received a "Prior Notice of Administrative Penalty" from the Hubei Securities Regulatory Bureau, exposing irregularities involving substantial fund misappropriation, false financial records, and undisclosed related-party transactions between the company and its former controlling shareholder, Dangdai Group. Humanwell Healthcare, Dangdai Group, and related individuals were collectively fined 367 million yuan.
"These events send a clear signal to the market," legal experts noted, emphasizing regulators' "zero-tolerance" stance toward controlling shareholders abusing their power to harm listed companies and minority investors, with strengthened accountability measures.
Notably, December 16 marked the first trading day for Humanwell Healthcare under ST status. While its stock hit the lower limit during pre-market auction, it rebounded sharply after opening, closing at 18.10 yuan per share, up 4.99%.
Analysts suggest the regulatory penalties finalize investigations into historical violations tied to the former controlling shareholder. With risks being resolved and state-backed restructuring underway, market focus has shifted to Humanwell Healthcare's growth prospects under new governance and resource frameworks.
**Four Key Violations** The Hubei Securities Regulatory Bureau identified four major violations by Humanwell Healthcare from 2020 to 2022: 1. **Fund Misappropriation**: Under Dangdai Group's direction, Humanwell Healthcare recorded 12.785 billion yuan in non-operational fund transfers to Dangdai Group during this period, accounting for up to 62.97% of audited net assets in 2021. Although repaid by April 2022, the 2020 financial report omitted these disclosures. 2. **Undisclosed Related-Party Transactions**: In March 2022, four Humanwell subsidiaries purchased 1.645 billion yuan in property assets from Wuhan Kemei Lide Biopharma, a Dangdai-linked entity, without proper disclosure. 3. **Profit Manipulation**: Through off-balance-sheet entities, Humanwell inflated net profits by 143 million yuan (2020), 72 million yuan (2021), and 91 million yuan (first half of 2022). 4. **Concealed Affiliations**: Dangdai Group hid its control over a stakeholder in a 100 million yuan equity acquisition, preventing timely disclosure.
**Restructuring Under New Ownership** Founded in 1993 and listed in 1997, Humanwell Healthcare is a leader in China's anesthesia and painkiller market. Dangdai Group, its former parent, faced bankruptcy in 2024 amid debt crises. In January 2025, China Merchants Group (CMG) acquired a 23.7% voting stake via a 11.8 billion yuan restructuring plan, becoming the new controlling shareholder.
Post-restructuring, CMG overhauled Humanwell's leadership, appointing its veteran Deng Weidong as chairman. By Q3 2025, Humanwell reported revenue of 17.883 billion yuan (down 6.58% YoY) but net profit growth of 6.22% to 1.689 billion yuan.
Industry observers highlight Humanwell's subsidiary Yichang Humanwell—Asia's largest anesthesia R&D base—as a key asset, historically contributing 70% of Dangdai Group's revenue, making it a prized target in the restructuring.
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