A case representing investor rights has been filed with the court by lawyer Liu Peng of Shanghai Huzi Law Firm, and the process of gathering additional affected investors is ongoing.

In relation to this case, on August 16, 2025, Xiangxue Pharmaceutical received a formal "Administrative Penalty Decision" from the Guangdong Regulatory Bureau. The company and relevant responsible persons were fined a total of 20.65 million yuan due to related-party fund occupation and financial misrepresentation spanning five years.

Specifically, the alleged violations of information disclosure by Xiangxue Pharmaceutical primarily involve false records and material omissions in annual reports. In December 2019, five villas owned by the company on Guangzhou Bio-Island were demolished by relevant government departments. The company failed to properly account for the loss from the demolished villas under construction-in-progress, leading to an overstatement of profit by 53.8325 million yuan in its 2019 annual report, which constituted 45.98% of the total profit disclosed for that period. Consequently, the 2019 annual report contained false records.

It was not until April 30, 2024, that Xiangxue Pharmaceutical issued an announcement adjusting the relevant construction-in-progress costs. Furthermore, due to the failure to disclose related-party non-operational fund occupation as required, the company's annual reports from 2016 to 2020 contained material omissions, primarily involving its controlling shareholder, Guangzhou Kunlun Investment Co., Ltd.

Based on current relevant laws and regulations, investors who meet the following provisional eligibility periods can register to participate in the claim:

(1) Those who purchased shares between May 20, 2020, and April 29, 2024, and sold them after April 30, 2024, or still held them and incurred losses.

(2) Those who purchased shares between March 25, 2017, and September 30, 2024 (inclusive), and sold them after October 1, 2024, or still held them and incurred losses.

The company's related parties have been severely penalized by regulators for illegally occupying listed company funds. In subsequent investor compensation lawsuits, the penalty decision will serve as strong supporting evidence.