Sino-Singapore Health｜Xinbang Pharmaceutical was fined 23 million yuan for committing bribery by the company

China News Service, Beijing, October 14 (Reporter Zhao Fangyuan) After its holding subsidiary was fined 4 million yuan in the first instance for unit bribery, Xinbang Pharmaceutical was also fined 23 million yuan in the first instance for unit bribery.

On October 14, the announcement disclosed by Xinbang Pharmaceutical showed that the company had recently received a "Criminal Judgment" ((2026) Qian 0121 Xingchu No. 2) from the People's Court of Kaiyang County, Guizhou Province, ruling that the defendant unit Guizhou Xinbang Pharmaceutical Co., Ltd. was guilty of unit bribery and sentenced to a fine of RMB 23 million.

Regarding the impact of this judgment, Xinbang Pharmaceutical stated that the company will conduct accounting treatments in accordance with relevant accounting standards, and the specific impact on the company's profits for the current period will be based on the audit opinion; according to the judgment, the company judged that this judgment does not involve the major illegal forced delisting stipulated in Section 5 of Chapter 9 of the "Shenzhen Stock Exchange Stock Listing Rules".

Previously, on October 8, Xinbang Pharmaceutical disclosed the progress of the first-instance judgment of its holding subsidiary Kekai Pharmaceutical involving unit bribery. The announcement shows that the holding subsidiary Guizhou Kekai Pharmaceutical Co., Ltd. (hereinafter referred to as "Kekai Pharmaceutical") received the "Criminal Judgment" ((2025) Qian 0121 Xingchu No. 68) served by the People's Court of Kaiyang County, Guizhou Province, ruling that the defendant unit Kekai Medicine committed unit bribery and was sentenced to a fine of RMB 4 million.

Kekai Pharmaceutical is the core pharmaceutical distribution platform of Xinbang Pharmaceutical. The announcement shows that Xinbang Pharmaceutical holds 99.9964% of the equity of Kekai Pharmaceutical. Kekai Pharmaceutical (single entity) has an operating income of 2.096 billion yuan, a net profit of 56.6129 million yuan, and a net asset of 2.331 billion yuan in 2025. The above financial indicators account for 37.30%, 29.52%, and 34.33% of Xinbang Pharmaceutical's 2025 operating income, net profit, and net assets respectively. The 4 million yuan fine imposed on Kekai Pharmaceutical accounted for 3.33% of Xinbang Pharmaceutical's latest audited net profit attributable to the parent company.

Sino-Singapore Health noted that although the two cases had different subjects and were tried separately, they both pointed to the past incident in 2014 when Xinbang Pharmaceutical acquired Kekai Pharmaceutical.

The predecessor of Kekai Medicine was the pharmaceutical sales department established in 1995 relying on the resources of Guiyang Medical College. In 2002, it was restructured into an independent company. After the restructuring, Wang Xiaolin, then president of the Affiliated Hospital of Guiyang Medical College, became the legal representative and chairman of the board, and An Huailue, who was the director of the emergency clinic at the Affiliated Hospital of Guiyang Medical College at the time, was appointed as the general manager. Since then, with the strong support of Wang Xiaolin, Kekai Medicine has become the largest drug supply platform in the Affiliated Hospital of Guiyang Medical University.

In 2013, Xinbang Pharmaceutical launched a major asset reorganization and eventually acquired 98.25% of the equity of Kekai Pharmaceutical through the issuance of shares and payment of cash. Anhuailuo took this opportunity to obtain approximately 3.89% of Xinbang Pharmaceutical's shares and became the third largest shareholder. He later became the general manager. In 2016, he succeeded Zhang Guanfu as chairman and fully led the company's operations.

According to the anti-corruption feature film "Advance in Depth - Guizhou Zhengfeng, Discipline and Anti-Corruption" jointly produced by the Guizhou Provincial Commission for Discipline Inspection and Guizhou Radio and Television Station, Wang Xiaolin originally preferred to merge Kekai Medicine into the national pharmaceutical system, but he changed his mind under the joint lobbying of An Moumou and Zhang Moumou, the head of the pharmaceutical company, and instead supported Zhang Moumou to complete the acquisition, and therefore received huge amounts of property. A staff member of the Guizhou Provincial Commission for Discipline Inspection and Supervision introduced in the feature film, "The total amount involved in his case is 156 million, which is a particularly huge amount of bribes among the cases we have investigated in recent years."

In April 2022, An Huailue resigned as chairman due to personal reasons and became a company consultant. A month later, his daughter Angie took over as chairman of Xinbon Pharmaceuticals.

Xinbang Pharmaceutical's troubles don't stop there. In January 2026, the company disclosed that after self-inspection, the company and its subsidiaries needed to pay a total of 50.7869 million yuan in back taxes and late fees, of which the parent company paid a back payment of 2.6957 million yuan, and the subsidiaries paid a total of 48.0912 million yuan. The above-mentioned back taxes and late payment fees will be included in the company's current profits and losses in 2025. This back payment does not involve administrative penalties.

From a performance perspective, Xinbang Pharmaceutical’s operating income has been declining in recent years. The financial report shows that in the first half of 2026, Xinbang Pharmaceutical achieved operating income of 2.467 billion yuan, a year-on-year decrease of 13.29%; net profit attributable to shareholders of listed companies was 99.5863 million yuan, a year-on-year decrease of 7.10%; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 76.6361 million yuan, a year-on-year decrease of 28.13%.

Xinbang Pharmaceutical stated in an announcement on October 14 that as of now, the company's board of directors and management are performing their duties normally, and the company and its subsidiaries are operating normally. The company's management will actively respond to the adverse effects of litigation matters and safeguard the legitimate rights and interests of the company and shareholders to the maximum extent.

As of the close of trading on October 14, Xinbang Pharmaceutical's stock price was 2.9 yuan per share, with a total market value of 5.6 billion yuan. Compared with its historical high, its market value has shrunk by more than 80%.