Kangmei Pharmaceutical released an announcement that Kangmei has been ruled by the Jieyang City Intermediate People’s Court to accept the reorganization, since there is a risk that the company will be declared bankrupt due to the failure of the reorganization. If Kangmei pharmaceutical declared bankrupt, the company would be put into liquidation, and the company’s shares would face the risk of termination of listing according to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. (Source: finance.eastmoney)
ABOUT KANGMEI PHARMA:
Kangmei Pharmaceutical Co., Ltd. engages in the manufacture and sale of pharmaceutical, health care and health food products. It offers Chinese medicines, including American ginseng, notoginseng powder, salvia powder, radix codonopsis pilosulae, maltiflower knotweed, angelica and lonicera flower, among others, as well as chemical drugs, including Clarithromycin Dispersible Tablets, Doxazosin Mesylate Tablets, Propiverine Hydrochloride Tablets and paracetamol and pseudoephedrine hydrochloride tablets, among others. The company also provides property management services. Kangmei Pharmaceutical was founded on June 9, 1997 and is headquartered in Shenzhen, China.
Back in 2019, Kangmei Pharmaceutical was involved in huge fraud case.
The China Securities Regulatory Commission (CSRC) wrapped up an 10-month investigation into Kangmei on August 16, 2019. After the markets closed that day, the securities regulator announced Kangmei had been involved in “premeditated and malicious cheating of investors”, with long-term planning.
Specifically, between 2016 and 2018, Kangmei inflated revenue by 29 billion yuan (US$4.1 billion) and its operating profit by 4.1 billion yuan, the regulator said. It also inflated cash positions by a total of 88.7 billion yuan in its 2016 and 2017 annual reports and its 2018 interim report, the regulator said. (Source: scmp.com)