Kangzhi Pharmaceutical, stock code 300086, announced on the evening of September 18 that it had received a case filing notice from the China Securities Regulatory Commission that day. Because of suspected illegal information disclosure, the CSRC decided to open an investigation into the company. The company said that as of the disclosure date, production and operations were proceeding normally, the case would not have a material impact on normal operations, and during the investigation it would actively cooperate with the CSRC and fulfil its information disclosure obligations. Previously, Kangzhi Pharmaceutical had already been ordered by the Hainan branch of the CSRC to make corrections over issues including inaccurate financial report disclosures and non-operating capital occupation by its controlling shareholder. Among these, the company paid 1,004,200 yuan in performance wages for employees of its controlling shareholder, Hainan Hongshi Investment Company Limited, which constituted non-operating capital occupation. The company approved a rectification report at a board meeting on April 27 and recovered the full amount. On the earnings front, net profit attributable to the parent company was negative for four consecutive years from 2022 to 2025, at minus 188 million yuan, minus 14 million yuan, minus 215 million yuan and minus 230 million yuan respectively. In the first half of 2026, revenue was 145 million yuan, down 37.67 percent year on year, net profit attributable to the parent company was minus 32.7665 million yuan, and net cash flow from operating activities swung from 66.35 million yuan in the same period last year to minus 11.24 million yuan. As of the close on September 18, the company's share price was 6.27 yuan, up 0.16 percent, and its total market value fell to 2.854 billion yuan.
Hainan Honz Pharmaceutical Co