ST Bailin's actual controller Jiang Wei is banned from the market; in the past two years, only one research report from China Post Securities.

China Economic Net Beijing, March 31—On March 27, the website of the Shenzhen Stock Exchange published a decision on imposing disciplinary sanctions, including public identification, on Guizhou Bailin Enterprise Group Pharmaceutical Co., Ltd. and related parties.

According to the “Administrative Penalty Decision” issued by the Guizhou Regulatory Bureau of the China Securities Regulatory Commission (Document Nos. [2026] 1-10) and the findings of the Shenzhen Stock Exchange, Guizhou Bailin Enterprise Group Pharmaceutical Co., Ltd. (hereinafter referred to as “ST Bailin,” 002424.SZ) and related parties have committed the following violations:

ST Bailin failed to comply with Article 9 of the “Accounting Standards for Enterprises—Basic Standards.” It did not use the accrual basis as the accounting basis and did not accrue selling expenses according to the revenue-expense matching principle. In 2019, ST Bailin under-accrued selling expenses by CNY 350.1249 million, thereby overstating profit by CNY 350.1249 million, accounting for 95.73% of the total profit stated in the relevant period’s report (absolute value); in 2020, it under-accrued selling expenses by CNY 240.8095 million, thereby overstating profit by CNY 240.8095 million, accounting for 115.35% of the total profit stated in the relevant period’s report (absolute value); in 2021, it under-accrued selling expenses by CNY 63.7916 million, thereby overstating profit by CNY 63.7916 million, accounting for 45.04% of the total profit stated in the relevant period’s report (absolute value); and in 2023, it over-accrued selling expenses by CNY 459.4110 million, thereby understating profit by CNY 459.4110 million, accounting for 93.17% of the total profit stated in the relevant period’s report (absolute value). The above financial statement fraud resulted in false records in ST Bailin’s annual reports for 2019, 2020, 2021, and 2023.

The above conduct by ST Bailin violates Article 1.4 and Article 2.1.1, paragraph 1, of the Shenzhen Stock Exchange’s “Stock Listing Rules (Amended in August 2023).”

ST Bailin’s then Chairman Jiang Wei; then Director, General Manager, and Secretary of the Board of Directors Niu Min; then Director and Vice General Manager Jiang Yong; then Independent Director and member of the Audit Committee Zhang Hongwu, Yang Ming, and Hu Jian; then Chief Financial Officer Li Hongxing; then Executive Vice General Manager Yuan Yuanzhen; and then Vice General Manager Feng Jixian failed to diligently perform their duties and to fulfill the obligations of integrity and diligence, violating Article 1.4, Article 2.1.2, Article 4.3.1, paragraph 1, and Article 4.3.5 of the Shenzhen Stock Exchange’s “Stock Listing Rules (Amended in August 2023),” and bear significant responsibility for the above violations by ST Bailin.

ST Bailin’s then Chief Financial Officer Zheng Rong failed to diligently perform her/his duties and to fulfill the obligations of integrity and diligence, violating Article 1.4, Article 2.2, and Article 3.1.5 of the Shenzhen Stock Exchange’s “Stock Listing Rules (Amended in November 2018),” and bears significant responsibility for the above violations by ST Bailin.

In light of the above facts and circumstances of the violations, and pursuant to Article 17.3 of the Shenzhen Stock Exchange’s “Stock Listing Rules (Amended in November 2018)” and Articles 13.2.1 and 13.2.3 of the Shenzhen Stock Exchange’s “Stock Listing Rules (Amended in August 2023),” after deliberation and approval by the Shenzhen Stock Exchange’s self-regulatory disciplinary supervision and disciplinary punishment committee, the Shenzhen Stock Exchange has made the following decision on sanctions:

1. Impose on Jiang Wei, ST Bailin’s then Chairman, a sanction of public identification for ten years as being unfit to serve as a director or senior management of a listed company. From the date on which the Shenzhen Stock Exchange issues the decision, during the identification period, Jiang Wei may not, in addition to being unable to continue serving as a director or senior management of the original listed company, also not serve as a director or senior management of any other listed company.

2. Impose on Guizhou Bailin Enterprise Group Pharmaceutical Co., Ltd. a sanction of public censure;

3. Impose on Guizhou Bailin Enterprise Group Pharmaceutical Co., Ltd. the sanctions of public censure on Jiang Wei, its then Chairman; Niu Min, then Director, General Manager, and Secretary of the Board of Directors; Li Hongxing and Zheng Rong, then Chief Financial Officers; Jiang Yong, then Director and Vice General Manager; Feng Jixian, then Vice General Manager; Yuan Yuanzhen, then Executive Vice General Manager; and Zhang Hongwu, Yang Ming, and Hu Jian, its then Independent Directors and members of the Audit Committee.

Late in the evening of March 27, ST Bailin released an announcement on the resignation of its Chairman and the recommendation of a director to act in place of the Chairman’s duties. On March 26, 2026, the company received a written resignation report submitted by Jiang Wei, the company’s Chairman. For personal reasons, he applied to resign from his positions as Chairman of the company; Director; Acting Secretary of the Board of Directors; Convener of the Strategic Committee under the Board of Directors; member of the Nomination Committee; member of the Compensation and Performance Evaluation Committee; and legal representative. Pursuant to relevant provisions including the “Company Law of the People’s Republic of China” and the “Articles of Association,” Jiang Wei’s resignation report became effective as of the date it was delivered to the board of directors. After his resignation, Jiang Wei no longer holds any position in the company.

Jiang Wei’s intended term was to end on the date the company’s sixth session of the board of directors expires. Pursuant to relevant provisions including the “Company Law of the People’s Republic of China,” the “Shenzhen Stock Exchange Stock Listing Rules,” and the “Articles of Association,” Jiang Wei’s resignation will not result in the board of directors having fewer than the statutory number of members, nor will it have an adverse impact on the company’s day-to-day management and production and operations. The company will, in accordance with statutory procedures, complete the selection of additional directors, the election of a newly appointed Chairman, the adjustment of members of the board’s special committees, and the election of the company’s legal representative as soon as possible.

The announcement shows that Jiang Wei is the company’s actual controller. As of the date of disclosure of the announcement, Jiang Wei holds 245,346,284 shares of the company, representing 17.55% of the company’s total share capital.

In the past two years, only one securities firm—China Post Securities Co., Ltd.—has released a research report on ST Bailin. On July 28, 2025, China Post Securities Co., Ltd. published “Guizhou Bailin (002424): Profitability significantly improved, and the R&D pipeline layout looks long-term,” with the researchers being Sheng Lihua and Long Yongmao.

(责任编辑：田云绯)

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