Affected investors can register their claims on the Sina Investor Rights Protection platform.
On January 8, 2026, Shanghai Jiucheng Law Firm's securities claim lawyer Xu Feng received the appeal petition from Hainan Poly Pharm (300630), which is appealing against the court's ruling in favor of the investors. Previously, an investor compensation case against Hainan Poly Pharm represented by Lawyer Xu Feng received a first-instance judgment from the Haikou Intermediate People's Court, with the investors winning the case. The legal team is concurrently advancing the filing of subsequent cases and continues to accept mandates from other investors seeking compensation.
On March 21, 2025, Hainan Poly Pharm announced that it had received the "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC) on January 4, 2025. The investigation found that from 2021 to 2022, Hainan Poly Pharm falsely recognized drug sales revenue and profits by fabricating sales businesses for finished drugs and active pharmaceutical ingredients. Specifically, in 2021, it overstated operating revenue by 436,606,838.34 yuan, accounting for 28.94% of the disclosed annual revenue, with corresponding operating costs of 128,588,402.85 yuan, leading to an overstatement of total profit by 308,018,435.49 yuan, which was 65.88% of the disclosed total profit for the year. In 2022, it overstated operating revenue by 456,639,341.72 yuan, representing 25.28% of the disclosed revenue, with corresponding operating costs of 69,222,084.20 yuan, resulting in an overstatement of total profit by 387,417,257.52 yuan, or 88.27% of the disclosed total profit.
During the same period, Hainan Poly Pharm accounted for its trade businesses in acetyl iodide, iodide (for ioversol), and yeast extract, over which it did not have control, using the gross method. This led to an overstatement of operating revenue by 77,997,346.38 yuan in 2021 (5.17% of the disclosed revenue), with corresponding operating costs of 77,997,346.38 yuan. In 2022, it overstated operating revenue by 59,259,735.84 yuan (3.28% of the disclosed revenue), with corresponding operating costs of 59,259,735.84 yuan.
In summary, Hainan Poly Pharm overstated its 2021 operating revenue by 514,604,184.72 yuan (34.11% of the disclosed figure), with corresponding operating costs of 206,585,749.23 yuan, leading to an overstatement of total profit by 308,018,435.49 yuan (65.88% of the disclosed total profit). For 2022, it overstated operating revenue by 515,899,077.56 yuan (28.56% of the disclosed figure), with corresponding operating costs of 128,481,820.04 yuan, resulting in an overstatement of total profit by 387,417,257.52 yuan (88.27% of the disclosed total profit). Consequently, the company's 2021 and 2022 annual reports contained false records.
According to Lawyer Xu Feng, Director of Shanghai Jiucheng Law Firm, which specializes in securities litigation, based on the prior favorable judgment for investors, those who purchased Hainan Poly Pharm shares between April 26, 2022, and April 17, 2024, and sold or continued to hold them after April 17, 2024, may still initiate compensation claims.