Chongqing Pharmaceutical disclosed in an announcement that over the past 12 months, the total amount involved in new litigation and arbitration cases reached 1.289 billion yuan, accounting for 11.17% of its latest audited net assets. Among these, cases where the company is the plaintiff involve approximately 1.193 billion yuan, representing over 90% of the total, mainly triggered by proactive debt collection efforts. The single largest case is a sales contract dispute filed by a subsidiary against Shaanxi Kaiya Pharmaceutical and others, involving 365 million yuan, with the first trial still pending. As of the end of 2025, the company's accounts receivable had soared to 36.054 billion yuan, equivalent to 43.73% of its full-year revenue, and receivables aged one to two years grew by 50.24% year-on-year to 3.994 billion yuan. The company had previously set aside 786 million yuan in credit impairment losses and received a warning letter for inaccurate financial information, exposing weaknesses in internal controls and financial accounting. The announcement stated that some cases have yet to be adjudicated, and the impact on profits remains uncertain.
C.Q. Pharmaceutical Holding Co LtdNew litigation and arbitration totaling 1.289 billion yuan, mainly as plaintiff for debt collection, plus a warning letter for inaccurate financial information, indicating internal control weaknesses.
