On July 8th, Prilly Pharmaceuticals, which had been suspended for more than two months, opened limit down by "20cm" after resuming trading. As of the time of publication, it fell to 9.88 yuan, a decrease of 20%. The company's stock price has fallen by more than 56% since the beginning of this year, and nearly 82% over the past three years. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.

On the news side, Prilly Pharmaceuticals announced on the evening of July 7th that the company received a notice of investigation from the China Securities Regulatory Commission. As the company is suspected of violating its information disclosure obligations, the China Securities Regulatory Commission has decided to launch an investigation into the company.

Therefore, *ST Xinfang and *ST Zhongqi may also experience a sharp sell-off tomorrow, and investors should be cautious. This is the company's second filing by the China Securities Regulatory Commission this year.

Prilly Pharmaceuticals was founded in 1992 and specializes in research and development, production, and sales of chemical drug formulations. It has achieved glorious achievements in the past but is now in an unprecedented predicament.

The release date of Prilly Pharmaceuticals' 2023 annual report has been postponed repeatedly.

The company originally planned to release its annual report and related announcements on April 29, 2024. However, on the previous trading day (April 26), Prilly Pharmaceuticals announced that the disclosure of its 2023 annual report and related announcements would be postponed until April 30.

Prilly Pharmaceuticals failed to release its 2023 annual report and 2024 first quarter report within the statutory deadline before April 30 of this year. According to the "Listing Rules of Growth Enterprise Stocks of the Shenzhen Stock Exchange", the company's stocks and convertible bonds were suspended from trading from May 6, 2024.On May 8th, Prilly Pharmaceuticals was investigated by the China Securities Regulatory Commission for suspected illegal information disclosure.

According to relevant regulations, if Prilly Pharmaceuticals fails to disclose more than half of the directors' guarantee for the truthfulness, accuracy, and completeness of the company's 2023 annual report within two months after the stock is suspended (until July 5, 2024), the trading of the company's stocks will be subject to delisting risk warnings from the resumption date.

According to relevant regulations,If Hainan Poly Pharm has not disclosed its 2023 annual report, for which at least half of the directors have guaranteed authenticity, accuracy and completeness, within two months after its stocks have been suspended (until July 5, 2024), the company's stock trading will be subject to delisting risk warnings from the day it resumes trading.

Until late at night on July 5th, the company's annual report was finally released.

On the evening of July 5th, Prilly Pharmaceuticals released multiple announcements including the 2023 annual report and the 2024 first quarter report.Performance shows, Prilly Pharmaceuticals achieved operating income of 1.304 billion yuan in 2023, a year-on-year decrease of 19.43%; net profit attributable to shareholders of the parent company was 0.086 billion yuan, a year-on-year decrease of 70.87%, and a net loss was incurred after deducting non-recurring gains and losses.

According to the first quarter report, Prilly Pharmaceuticals achieved operating income of 0.306 billion yuan, a year-on-year increase of 42.69%; net profit attributable to shareholders of the parent company was 66.6904 million yuan, a year-on-year increase of 0.44%; and net profit after deducting non-recurring gains and losses was 64.2674 million yuan, a year-on-year increase of 0.46%.

In the 2023 annual audit report, Tianjian CPA has issued a "qualified opinion", citing reasons including inability to confirm the completeness and accuracy of the prior period correction items, inability to confirm whether Prilly Pharmaceuticals and seven other companies including Descon are related parties, whether the disclosure of transactions is accurate and complete, and whether the transaction prices are fair.

On the evening of July 7th, Prilly Pharmaceuticals released an announcement stating that the company and related parties had received an "administrative penalty advance notice". Because it did not disclose its 2023 annual report within the prescribed period,Prilly Pharmaceuticals is expected to be instructed to rectify by the Hainan Securities Regulatory Bureau, receive a warning, and be fined 1 million yuan.

In addition,Hainan Poly Pharm's former chairman and general manager Fan Minhua, and former director, vice president, and CFO Luo Tongning are proposed to be fined 400,000 yuan and 300,000 yuan respectively.

However, subsequently, Hainan Poly Pharm announced again that it had received a notice of acceptance of the case from the China Securities Regulatory Commission. According to relevant laws and regulations, the China Securities Regulatory Commission has decided to file a case against the company for suspected illegal disclosure of information.

The company has been asked to conduct related self-examination and rectification work because of inaccurate financial information disclosure in the company's 2021 and 2022 annual reports. According to the self-examination, the company has made accounting error corrections and retrospective adjustments to the 2021 and 2022 consolidated financial statements and parent company financial statements. The above accounting error corrections and retrospective adjustments involve multiple accounting years and large amounts. At present, the company is under investigation by the China Securities Regulatory Commission, and the final investigation results shall prevail.

If the facts recognized by the China Securities Regulatory Commission's administrative penalty in the future touch on the major illegal compulsory delisting situation stipulated in the Growth Enterprise Market Listing Rules of the Shenzhen Stock Exchange, the company's stock faces the risk of being forcibly delisted due to major illegal acts.