Shanghai Shenqi Pharmaceutical received an administrative supervision measure decision from the Securities Regulatory Commission for information disclosure violations

On September 26, 2025, Shanghai Shenqi Pharmaceutical Investment Management Co., Ltd. received the "Administrative Supervision Measures Decision" from the Shanghai Securities Regulatory Bureau. Upon investigation, it was found that in 2023, the company used the "Essential Drug Promotion Plan" to misappropriate sales expenses amounting to 44,838,280 yuan, fabricated accounts receivable repayments through employee personal accounts, and reversed credit impairment provisions, resulting in errors in the information disclosure of the 2023 annual report. The then Chairman ZHANG TAOTAO, then General Manager Feng Bin, and then Chief Financial Officer Chen Zhimian did not perform their duties diligently. The Shanghai Securities Regulatory Bureau decided to order the company to make corrections and required a rectification report to be submitted within 30 days; a warning letter was issued to the three individuals. The company stated that it will actively rectify, standardize accounting practices, and that the directors and other personnel will enhance their performance capabilities. This regulatory measure will not affect normal operations