Investors affected by the recent developments involving Guizhou Bailing Group Pharmaceutical Co., Ltd. (hereinafter referred to as "Guizhou Bailing" or "the Company") may register for compensation claims through the appropriate channels.
On December 3, 2025, Guizhou Bailing announced that its actual controller, Mr. Jiang Wei, received a formal investigation notice (No. 03720252005) from the China Securities Regulatory Commission (CSRC). The investigation pertains to alleged insider trading, violations of information disclosure rules, and illegal stock transfers, as per the Securities Law and Administrative Penalty Law. Additionally, the Company itself is under CSRC investigation, with no conclusions yet reached, exposing it to potential investor lawsuits.
Attorney Zhao Jingguo of Shanghai Xinben Law Firm (License No.: 13101200410820485) noted that investors who purchased and held shares between April 23, 2022, and April 29, 2024—regardless of whether they sold the shares after April 30, 2024—may voluntarily register claims through designated platforms.
From 2014 to 2022, Guizhou Bailing received annual inquiry letters from the Shenzhen Stock Exchange for nine consecutive years, with regulators flagging irregularities in accounts receivable and inventory. In December 2023, an inspection by the Guizhou Securities Regulatory Bureau uncovered issues such as delayed recording of sales expenses and revenue misclassification, leading to inaccuracies in the 2021–2022 annual reports. By April 2024, auditors issued a negative opinion on the Company’s internal controls and a qualified opinion on its financial statements due to unverifiable sales expenses.
Further regulatory actions followed: in June 2024, the Company received a warning letter for failing to disclose its 2023 earnings forecast as required; in August, it was ordered to rectify issues but did not submit a compliance report. Reports indicate that Guizhou Bailing’s 2023 annual report contained duplicate quarterly data, misclassifying half-year figures as Q2 results, leading to an underreported loss of ¥92 million. Additionally, its Q4 2023 sales expense ratio surged to 81.73%, far exceeding earlier quarters and industry peers.
On November 8, 2024, the CSRC initiated another investigation (No. 0312024002) into the Company for suspected disclosure violations, which remains unresolved as of December 2025. The separate investigation into the controller was announced on December 3, 2025.
The Xinben Investor Claims Team advises affected investors to register claims voluntarily through authorized platforms.
**Eligibility for Claims**: Investors who purchased and held Guizhou Bailing shares between April 23, 2022, and April 29, 2024, may file claims, irrespective of subsequent sales. (Note: Compensation scope will be determined by court rulings.)
(Disclaimer: This information is provided by Attorney Zhao Jingguo, a partner at Shanghai Xinben Law Firm, and does not represent the views of any media outlet. Attorney Zhao, licensed since 1999, specializes in securities disputes and financial litigation, with a proven track record in investor compensation cases.)
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