Guizhou Bailing Group Pharmaceutical Co., Ltd. (002424) announced on the evening of December 3 that its actual controller Jiang Wei has been formally investigated by the China Securities Regulatory Commission (CSRC). The investigation involves suspected insider trading, information disclosure violations, and illegal transfers of restricted shares.
This follows a previous CSRC investigation into Guizhou Bailing in November 2024 for suspected information disclosure violations, the results of which remain pending. The company stated that this current investigation targets Jiang Wei personally and will not affect daily operations.
Jiang Wei, born in 1961 and chairman since 2007, led Guizhou Bailing's IPO in 2010, making it the first listed ethnic Miao medicine company. Under his leadership, the company developed popular products like Kesuting Syrup and Yindan Xinnaotong Soft Capsules.
Regulatory scrutiny has intensified recently: - December 2023: Guizhou securities regulator issued corrective orders and warnings - May 2024: Additional regulatory warnings issued - July 2024: Accounting irregularities found, including inaccurate sales expense reporting - November 2024: CSRC launched information disclosure investigation
The company is also embroiled in a legal dispute with shareholder Huachuang Securities regarding a 2019 bailout plan. Huachuang claims Jiang Wei defaulted on 1.4 billion yuan in bailout repayments and 361 million yuan in stock pledge financing, while Jiang countersued alleging Huachuang failed to exit as agreed and caused stock price losses.
Financial performance has declined: - Q1-Q3 2025 revenue: 2.102 billion yuan (down 24.28% YoY) - Net profit: 57 million yuan (down 35.6% YoY) As of December 3, shares closed at 5.57 yuan with a 7.785 billion yuan market cap.
Jiang directly holds 17.55% of shares, while Huachuang's asset management plans hold 11.54%.
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