Investment Express Correspondent Guangzhou Report
Another shockwave hit the A-share market as a pharmaceutical company on the STAR Market faced regulatory investigation, failed restructuring, and shareholder减持 within a week, causing significant stock price fluctuations in the secondary market. Nanxin Pharmaceutical (688189) announced on the evening of September 30 that it received an “Investigation Notice” from the China Securities Regulatory Commission. On the first trading day after the National Day holiday, the company’s stock experienced a 20cm跌停. Legal representatives indicated that affected investors can send their contact information to suopeibao@126.com to register for compensation pre-registration.
Involving Information Disclosure Violations
On the evening of September 30, Nanxin Pharmaceutical announced that it received an “Investigation Notice” from the China Securities Regulatory Commission. The company is under investigation for suspected annual report information disclosure violations. On the same day, the company also announced the termination of major asset restructuring plans that had been in preparation for nearly two months. The combination of these two significant developments caused the company’s stock price to plummet, resulting in substantial losses for many investors.
The CSRC investigation specifically targets annual report information disclosure violations. Although the announcement did not specify the exact reasons, clues emerged from a company announcement made in April of this year.
Previous Accounting Error Corrections
In April, Nanxin Pharmaceutical disclosed that it had prematurely recognized 24.54 million yuan in revenue in December. This “accounting error” correction likely forms the basis of the current CSRC investigation. The company retrospectively restated the relevant financial reports, reducing 2023 operating revenue by 24.5397 million yuan, representing 3.4% of that year’s operating revenue. This adjustment directly impacted investors’ decision-making. In capital markets, revenue recognition is a core element of financial information disclosure, and premature revenue recognition can artificially inflate current performance, misleading investors about the company’s true value.
Notably, just before the announcement of the investigation and restructuring termination, major shareholders arranged precise减持, with the timing raising questions about the company’s internal governance. In terms of performance, the company has accumulated losses exceeding 500 million yuan over five years since listing. For Nanxin Pharmaceutical, which urgently needs new growth drivers, the failed restructuring means losing a potential transformation opportunity.
Additionally, Nanxin Pharmaceutical faces serious delisting risks.
Currently, the company’s first-half revenue is only over 60 million yuan, with continuing losses. Whether annual revenue can exceed the 100 million yuan threshold remains highly uncertain. According to relevant regulations, if the company’s 2025 revenue falls below 100 million yuan and losses continue, it would directly trigger mandatory delisting conditions on the STAR Market.
Investor Rights Protection Concerns
Amst multiple crises, time is running out for Nanxin Pharmaceutical. Affected investors can actively participate in rights protection efforts to recover losses. Legal representatives advise investors to closely monitor company announcements and CSRC investigation progress, properly preserve relevant transaction documents, and prepare for potential compensation claims. According to relevant regulations, investors meeting the following preliminary criteria may participate in compensation claims: those who purchased shares before September 30 (inclusive) and sold or still held shares after October 1 while incurring losses. This range is preliminary and subject to final court judgment. Eligible investors can send contact information to suopeibao@126.com for compensation registration.
