On January 16, 2026, the Shanghai Stock Exchange issued a public censure against Zhejiang Hisun Pharmaceutical Co.,Ltd. (600267.SH) and six of its senior executives. The disciplinary action was taken due to inauthentic and inaccurate financial information contained in the company's annual reports from 2021 to 2024. On the same day, the Zhejiang Securities Regulatory Bureau also issued a warning letter to Hisun Pharma.
The Shanghai Stock Exchange's "Disciplinary Decision" stated that, upon investigation, Hisun Pharma disclosed an "Announcement on the Correction of Prior Accounting Errors" on August 26, 2025. This announcement corrected certain financial data in the annual reports for 2021-2024, involving items such as operating revenue, operating costs, and investment income. These matters reflect that the financial information disclosed by the company in the relevant previous reports was not authentic or accurate.
The "Announcement on the Correction of Prior Accounting Errors" revealed that from 2021 to 2023, certain raw material trading businesses conducted by Hisun Pharma's wholly-owned subsidiary, Zhejiang Pharmaceutical Industry Co., Ltd., lacked sufficient commercial substance and rationality, failing to meet the criteria for revenue recognition. The resulting significant prior period error corrections involved a cumulative downward adjustment of 948.8264 million yuan in operating revenue and a downward adjustment of 930.0288 million yuan in operating costs for the consolidated financial statements from 2021 to 2023, alongside an upward adjustment of 18.7977 million yuan in investment income. For the 2024 consolidated financial statements, there was an upward adjustment of 405.1286 million yuan in operating revenue, an upward adjustment of 394.7965 million yuan in operating costs, and a downward adjustment of 10.3321 million yuan in investment income.
Furthermore, from 2021 to 2023, for some of its raw material trading businesses, the subsidiary did not essentially obtain control of the goods nor substantially bear the primary responsibility for the inventory. In these transactions, the subsidiary acted as an agent, failing to meet the conditions for recognizing revenue under the gross method. The corresponding significant prior period error corrections involved a cumulative downward adjustment of 593.7758 million yuan in both operating revenue and operating costs for the 2021-2023 consolidated financial statements. For the 2024 consolidated financial statements, there was an upward adjustment of 148.2704 million yuan in both operating revenue and operating costs.
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