Affected investors can register for claims on Sina's investor rights protection platform: http://wq.finance.sina.com.cn/. Follow @Sina Securities on WeChat, search for Sina Securities and Funds, or visit the Sina Finance client or homepage to access the platform.
Recently, a closely watched securities fraud lawsuit involving investors suing Hunan Nanxin Pharmaceutical Co., Ltd. (stock abbreviation: Nanxin Pharma, stock code: 688189) has progressed. Lawyer Li Jian from Zhejiang Yufeng Law Firm, one of the plaintiff's representatives, stated that this week, his firm has submitted court filing materials on behalf of some affected investors.
Looking back at the case, on June 10, 2026, Nanxin Pharma issued an announcement regarding receipt of an Advance Notice of Administrative Penalties. The notice detailed alleged violations: In 2023, the company's controlled subsidiary, Guangzhou Nanxin Pharmaceutical Co., Ltd. (Guangzhou Nanxin), failed to reverse corresponding revenue and profit after partial customer returns. This led to Nanxin Pharma's 2023 annual report overstating revenue by 44.3588 million yuan (5.96% of total revenue) and overstating total profit by 9.0877 million yuan (119.46% of total profit).
Additionally, in 2023, Guangzhou Nanxin signed Accounts Receivable Agreements with certain customers. After the agreed cash discounts took effect, the company failed to reverse corresponding revenue and profit. This resulted in a further overstatement of 20.324 million yuan in revenue (2.73% of total revenue) and 2.8645 million yuan in total profit (37.65% of total profit) in the 2023 annual report.
In total, these actions caused Nanxin Pharma to overstate its 2023 annual revenue by 64.6828 million yuan (8.69% of total revenue) and overstate total profit by 11.9522 million yuan (157.11% of total profit). According to the Supreme People's Court's judicial interpretation on securities misrepresentation, listed companies and others whose securities misrepresentation harms investors' rights can be sued for compensation. Claims can include investment差额 losses, commission, and stamp duty losses.
Lawyer Li Jian stated that, based on the judicial interpretation, affected investors who purchased Nanxin Pharma shares between March 26, 2024, and September 30, 2025, and still held them at the close on September 30, 2025, are tentatively eligible to file claims. The final claim conditions will be determined by the court.
Investors seeking compensation need to provide securities account information queries, stock transaction records, and contact details.