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On the evening of August 13, 2026, Hunan Nanyangxin Pharmaceutical Co., Ltd. (stock short name: Nanyangxin Pharmaceutical, stock code: 688189) released a notice regarding the receipt of an "Administrative Penalty Decision." Li Jian, a lawyer from Zhejiang Yufeng Law Firm and one of the plaintiffs' representatives, stated that based on the penalty decision, Nanyangxin Pharmaceutical is suspected of making false securities statements. He noted that his firm has already submitted lawsuit materials on behalf of some affected investors.

The announcement revealed that the Hunan Securities Regulatory Bureau found the following violations: In 2023, after certain customers returned goods to Nanyangxin Pharmaceutical's controlled subsidiary, Guangzhou Nanyangxin Pharmaceutical Co., Ltd. (Guangzhou Nanyangxin), the subsidiary failed to offset its current revenue and profit. This led to Nanyangxin Pharmaceutical's 2023 annual report overstating its operating revenue by 44.3588 million yuan, accounting for 5.96% of that period's revenue, and overstating its total profit by 9.0877 million yuan, representing 119.46% of that period's total profit.

Additionally, in 2023, Guangzhou Nanyangxin entered into "Accounts Receivable Agreements" with certain customers. After the cash discounts stipulated in these agreements took effect, the subsidiary failed to offset its current revenue and profit. This resulted in Nanyangxin Pharmaceutical's 2023 annual report overstating its operating revenue by 20.324 million yuan, accounting for 2.73% of that period's revenue, and overstating its total profit by 2.8645 million yuan, representing 37.65% of that period's total profit.

These combined actions caused Nanyangxin Pharmaceutical to overstate its 2023 annual operating revenue by a total of 64.6828 million yuan, or 8.69% of that period's revenue, and to overstate its total profit by 11.9522 million yuan, or 157.11% of that period's total profit. The Hunan Securities Regulatory Bureau decided to issue a warning to Nanyangxin Pharmaceutical and impose a fine of 5 million yuan, while also issuing warnings and fines to the responsible individuals.

According to the Supreme People's Court's judicial interpretation on false statements, listed companies and other entities that harm investors' rights due to securities misrepresentation can be sued for compensation. The scope of compensation includes investment losses, commissions, and stamp duty. Lawyer Li Jian stated that, based on the judicial interpretation, the claiming period is tentatively set for investors who purchased the stock between March 26, 2024, and September 30, 2025, and still held Nanyangxin Pharmaceutical shares at the close of September 30, 2025. The final eligibility criteria will be determined by the court. Investors seeking compensation must provide securities account information, stock transaction records, and contact details.