Huapont Health's wholly-owned subsidiary Shenyang Xinma Pharmaceutical Co., Ltd. is being pursued by tax authorities for about 38.51 million yuan in taxes and late fees due to false invoicing. According to a company announcement on July 21, 2026, the Second Inspection Bureau of the Shenyang Tax Service of the State Taxation Administration determined that Xinma Pharmaceutical had committed the illegal act of issuing false invoices, and should pay a total of 38,505,063.37 yuan in back taxes, including approximately 5.07 million yuan in value-added tax and surcharges, and approximately 33.43 million yuan in corporate income tax, with a daily late fee of 0.05 percent starting from the date of delinquency. Xinma Pharmaceutical has a registered capital of 40 million yuan, and its 2025 net assets were 79.4674 million yuan, accounting for 0.47 percent of the company's consolidated statements, while its net loss was 14.9476 million yuan, accounting for negative 1.70 percent of the consolidated statements, and it is not a significant subsidiary of the company. The company stated that the back tax payment does not constitute a prior period accounting error and does not involve corrections to prior financial data. The matter has not had a material adverse impact on the company's overall operations and does not trigger mandatory delisting for major violations.
Huapont Life Sciences Co LtdSubsidiary fined ~38.5M yuan for false invoicing, though company says not material.
Directly fined for issuing false invoices, tax recovery of ~38.5M yuan.