After more than a year of investigation, the regulatory case involving ST Nuotai has reached its conclusion. Once hailed as a "weight-loss drug concept stock," Nuotai Biotech has been penalized by the China Securities Regulatory Commission (CSRC) and disciplined by the Shanghai Stock Exchange.
On the evening of December 17, ST Nuotai announced that it had recently received the "Administrative Penalty Decision" from the CSRC. Due to violations such as fabricating major false content in public offering documents, the company and its controlling shareholder Zhao Dezhong, along with five others, were collectively fined 76.2 million yuan.
The investigation revealed that ST Nuotai's 2021 annual report contained false records. In December 2021, Nuotai Biotech transferred drug technology and marketing authorization rights to Zhejiang Huabei, recognizing 30 million yuan in revenue on December 28. However, this 30 million yuan payment ultimately came from Nuotai Biotech's capital increase, lacking commercial substance and thus should not have been recognized as revenue. This transaction inflated the company's 2021 revenue by 30 million yuan and total profits by 25.9516 million yuan, accounting for 20.64% of the reported profit for the period.
Additionally, ST Nuotai fabricated major false content in its public offering documents. As mentioned, the company inflated revenue and profits in 2021, with false figures accounting for 20.64% of the reported total profit. Consequently, the "Financial Accounting Information" section in its "Prospectus for Public Offering of Convertible Corporate Bonds" contained significant misrepresentations.
Considering these violations, the CSRC ordered ST Nuotai to rectify its actions, issued a warning, and imposed a fine of 47.4 million yuan. Controlling shareholder Zhao Dezhong and other responsible individuals were also warned and fined. The penalties also extend to former executives Zhao Deyi, Jin Fuqiang, Tong Ziquan, Gu Haitao, and Xu Donghai.
Public records show that ST Nuotai was founded in 2009, listed on the New Third Board in 2016, and went public on the STAR Market in 2021. According to its website, Nuotai Biotech is a biopharmaceutical company specializing in peptide drugs and small-molecule chemical drugs, combining independent R&D with contract development and manufacturing. The company actively expands its product pipeline across advanced pharmaceutical intermediates, active pharmaceutical ingredients (APIs), and finished dosage forms, focusing on peptide-related businesses.
Zhao Dezhong, a graduate of Huazhong University of Science and Technology in International Economics and Trade, previously worked at Zhuji Industrial Equipment Installation Company. In September 2004, he invested in Hangzhou Nuotai Pharmaceutical Technology Co., Ltd. (later transferred and renamed Hangzhou Anuo Biopharmaceutical Technology Co., Ltd.), entering the peptide drug sector. Since April 2009, Zhao has served as a director of Nuotai Biotech. He and his brother Zhao Deyi are the company's controlling shareholders.
Notably, another announcement on the evening of December 17 revealed that the Shanghai Stock Exchange also issued disciplinary actions against Nuotai Biotech and the aforementioned individuals. The exchange publicly reprimanded the company and six responsible parties, barring Zhao Dezhong from serving as a director, supervisor, or senior executive of listed companies for three years. Additionally, companies controlled by Zhao Dezhong are prohibited from submitting IPO applications for one year, while ST Nuotai is barred from filing for refinancing for five years.
Industry experts interpret the last penalty as effectively preventing Nuotai Biotech from refinancing for the next five years.
On July 19, 2025, ST Nuotai stated in an announcement regarding the "Advance Notice of Administrative Penalty" that its production and operations remained normal. In the first three quarters of 2025, the company reported revenue of 1.527 billion yuan, up 21.95% year-on-year, with net profit attributable to shareholders reaching 445 million yuan, a 26.92% increase. Adjusted net profit rose 23.20% to 437 million yuan.
The company's shares were suspended for one day on July 21 due to the imposition of "special treatment" (ST) status. Upon resuming trading on July 22, the stock opened sharply lower but recovered somewhat, ultimately closing down 4.29%.
Amid the surging popularity of GLP-1 weight-loss drugs like semaglutide and tirzepatide, Nuotai Biotech gained attention as a "weight-loss drug concept stock" due to its peptide API capabilities. Recently, its subsidiary Hangzhou Nuowei Biopharmaceutical Technology Co., Ltd. received clinical trial approval from the National Medical Products Administration for its self-developed oral semaglutide tablets (3mg/7mg/14mg/25mg/50mg).
As of December 18, ST Nuotai's shares closed down 0.44% at 38.38 yuan per share, with a total market capitalization of 12.1 billion yuan.