Hainan Huluwa Pharmaceutical Group Co., Ltd. has received consecutive administrative penalties from the Hainan Bureau of the China Securities Regulatory Commission and disciplinary actions from the Shanghai Stock Exchange due to false records in its 2023 annual report and 2024 semi-annual report. Investigations found that the company inflated its 2023 annual revenue by 110 million yuan, accounting for 5.77% of the disclosed revenue for that period, and inflated total profit by 89.58 million yuan, representing 66.11% of the disclosed total profit. In its 2024 semi-annual report, the company understated revenue by 42.6 million yuan and understated total profit by 27.66 million yuan. The Hainan Bureau imposed a warning and a fine of 7 million yuan on the company. Chairman and actual controller Liu Jingping was fined a total of 10.5 million yuan, then-chief financial officer Yu Hui was fined 2.5 million yuan, and then-board secretary Wang Qingtao was fined 1.5 million yuan. On the same day, the Shanghai Stock Exchange publicly reprimanded the company and the responsible individuals, and decided not to accept any listing application documents from the company for three years. Additionally, the company was criticized for violations related to related-party transactions. The company's performance declined sharply in 2025, with revenue falling 36.27% year-on-year to 901 million yuan and a net loss of 287 million yuan. For the first half of 2026, it expects a loss of between 98 million and 118 million yuan.
Hainan Huluwa Pharmaceutical Group Co LtdCompany and executives penalized for financial fraud, with fines and listing application ban.