The case against Puli Pharmaceutical for financial misconduct has seen a significant development with a favorable initial court ruling, and efforts to gather affected investors for compensation claims are ongoing.
The financial fraud at Puli Pharmaceutical, as detailed in the case review, is severe. On March 21, 2025, the company received an "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC), fully exposing a two-year scheme of financial deception.
According to the CSRC's findings, from 2021 to 2022, Puli Pharmaceutical significantly inflated its revenue and profits through methods such as fabricating sales of finished drugs and active pharmaceutical ingredients, and accounting for trade businesses over which it had no control using the gross method. Over the two-year period, the company falsely reported cumulative operating revenue exceeding 1.029 billion yuan and inflated total profits by as much as 669 million yuan.
The CSRC has ordered Puli Pharmaceutical to make corrections, issued a warning, and imposed a fine of 10 million yuan. Responsible individuals have also faced strict penalties.
Due to the extreme severity of the financial fraud, which triggered circumstances for mandatory delisting due to major violations, Puli Pharmaceutical's stock was officially delisted from the A-share market in April 2025. However, the company's delisting does not affect the right of eligible investors who suffered losses to seek compensation according to the law.
Based on the court judgment, investors who purchased shares between April 26, 2022, and April 16, 2024, and subsequently sold them or continued to hold them at a loss after April 17, 2024, are eligible to register for compensation claims.
Given the initial court victory, subsequent cases of a similar nature are expected to receive judgments more swiftly. The statute of limitations for this case has not yet expired, allowing affected investors to check if they fall within the eligible claim period and participate in efforts to recover their losses.
The CSRC has explicitly stated that it will assist eligible investors who have suffered losses due to listed companies' financial fraud in safeguarding their rights according to the law.