Zhejiang Xianju Pharmaceutical warned over fund mismanagement

Zhejiang Xianju Pharmaceutical Co., Ltd. has received a warning letter from the Zhejiang Securities Regulatory Bureau following an on-site inspection. The bureau identified several issues related to the company's raised funds management and use.

These issues included failure to follow proper review and disclosure procedures for partial fund replacement, using raised funds for non-project-related expenses, and commingling raised funds with proprietary funds when purchasing bank structured deposit wealth management products.

These actions violated the "Administrative Measures for Information Disclosure by Listed Companies" and "Regulatory Guidelines No. 2 for Listed Companies—Regulatory Requirements for Raised Funds Management and Use." The company's chairman, Zhang Yusong; general manager, Jin Weihua; chief financial officer, Wang Yaohua; and board secretary, Zhang Wangwei, were deemed primarily responsible.

As a result, the Zhejiang Securities Regulatory Bureau issued supervisory warning letters to the company and the aforementioned individuals, which will be recorded in their securities and futures market integrity files. Zhejiang Xianju Pharmaceutical is required to submit a written report to the bureau within 10 working days, indicating it will strengthen compliance and rectify the identified issues. The company stated these measures would not affect its normal production and operations.