Delisting Does Not Erase Liability: <b>Sailong Pharma</b> Faces Investor Claims After Profit Warning Reversal

Deep News09-03 15:10

Sailong Pharma (Sailong Pharmaceutical) received a delisting decision from the Shenzhen Stock Exchange on June 17, 2026. Both its 2025 annual financial report and internal control report were issued with "disclaimer of opinion" audit conclusions. The company officially exited the market on July 16.

The delisting follows regulatory scrutiny over the company's earlier profit forecast issues. On January 22, 2025, Sailong Pharma projected a total profit of approximately RMB 5.1 million to RMB 7.1 million for 2024, with net profit attributable to shareholders of around RMB 4.5 million to RMB 6.5 million, still indicating profitability overall. However, the final annual report revealed a dramatic shift. The company's actual 2024 total profit showed a loss of RMB 34.9197 million, with net profit attributable to shareholders down RMB 33.1456 million, on revenue of approximately RMB 264 million. The significant gap between the optimistic forecast and the actual result led to a delisting risk warning on the company's shares.

An investigation by the Guangdong Regulatory Bureau found that Sailong Pharma's earnings forecast differed materially from actual results, with a change in profit-loss nature. Additionally, the company failed to issue the required timely notice about the potential delisting risk warning. Regulators consequently imposed warning measures on the company and related responsible individuals.

It is important to note that delisting does not automatically eliminate related civil liabilities. Investors who suffered losses due to information disclosure issues may still seek compensation under qualifying conditions. Lawyer Liu Peng of Shanghai Huzi Law Firm stated that investors who purchased Sailong Pharma shares during the period from January 22 to March 14, 2025 (inclusive), and either sold them after March 15, 2025, or continued to hold them while incurring losses, can still register for rights protection claims.

From the previously high-profile "12-day, 8-limit-up" surge to the price volatility during the delisting adjustment period, Sailong Pharma's experience serves as a reminder to investors: while monitoring stock price movements, equal attention should be paid to fundamental factors such as earnings performance and disclosure quality. For those hurt by the company's profit forecast issues, reviewing personal trading records can help determine eligibility for claims and pursue remedies through lawful channels.

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