**I. Mandatory Delisting Due to Major Violations**
Although Puli Pharmaceutical has been delisted due to severe financial fraud, the path for investor rights protection has not been cut off, and some investors have already received loss calculation reports from the court.
Looking back at this case, on March 21, 2025, the company received a penalty decision from the China Securities Regulatory Commission (CSRC). Due to extremely severe financial fraud that triggered mandatory delisting for major violations, the company officially departed from the A-share market in April. However, the corporate entity remains operational, which does not affect investor compensation matters.
After the serious incident, many investors have actively participated in rights protection. Investors who purchased shares between April 26, 2022, and April 16, 2024, and sold after April 17, 2024, or still hold shares with losses, are eligible to register for compensation claims. It is noteworthy that in this case, the company's auditing firm has also been listed as a defendant. The court will impose corresponding criminal and civil penalties on various financial fraud entities including securities issuers, lead underwriters, financial advisors, and accounting firms according to their respective faults.
**II. Severe Punishment for Financial Statement Fraud**
According to the announcement, the CSRC determined that the company inflated revenue and profits by fabricating sales of finished drugs and raw materials, and conducting trade business using the gross method for accounting. According to calculations, the company's falsely recorded operating revenue for 2021 and 2022 totaled 1.031 billion yuan, accounting for 31.08% of the total annual operating revenue disclosed for those two years; the falsely recorded total profit amounted to 695 million yuan, accounting for 76.72% of the total annual profit disclosed for those two years. The CSRC decided to order the company to make corrections, issue a warning, and impose a fine of 10 million yuan, with relevant responsible persons receiving penalties accordingly.
Based on similar cases, it typically takes 1-2 years from filing to first-instance judgment. Although the Puli Pharmaceutical case involves enormous amounts, the court has established a "green channel" for securities disputes, which is expected to improve trial efficiency. Affected investors need to be patient after participation, and any case developments will be communicated promptly.