Kangmei Pharmaceutical faces continued scrutiny amid audit and litigation

Kangmei Pharmaceutical (SSE:600518) faces continued financial and regulatory challenges in 2024, according to a series of recent announcements. While the company reported no non-operating capital occupation for 2024 and plans no profit distribution due to negative retained earnings, it also revealed a qualified but continuing effective financial reporting internal control. A scrutiny review by Zhonghuan Certified Public Accountants highlights existing related party relationships and transactions potentially affecting the company's financial position. Additionally, the firm will perform a special audit for 2024 to assess the non-operating capital occupation. Kangmei is also working through a long-standing class-action suit and new audit from a new firm.