On January 5, Poly Pharm announced that the company is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws and regulations. On January 4, the company received an "Advance Notice of Administrative Penalty" issued by the CSRC. According to the facts stated in the notice, the annual reports for 2021 and 2022 contain false records. Specifically, the fabricated operating revenue amounts to a total of 1.03 billion yuan, accounting for 31.08% of the total annual operating revenue disclosed for those two years. The total fabricated profit amounts to 695 million yuan, which constitutes 76.72% of the total annual profit disclosed for the same period.

According to the facts established in the notice, Poly Pharm may engage in a significant violation that triggers mandatory delisting under the regulations of the "Shenzhen Stock Exchange's Growth Enterprise Market Listing Rules (2024 revision)," which states that if a company's disclosed total profit has false records for two consecutive years, and the combined amount of these false records exceeds 500 million yuan, accounting for more than 50% of the total annual profit disclosed for those two years, the company may face mandatory delisting.

Following the notice, the company's stock and its convertible bonds will be suspended for trading on January 6, 2025 (Monday) for one day and will resume trading on January 7, 2025 (Tuesday). Beginning January 7, 2025, the company's stock will be subject to "delisting risk warnings," and the stock name will change from "Poly Pharm" to "*ST Puli," while the stock code remains "300630." The daily trading fluctuation limit for the company's stock following the imposition of delisting risk warnings will still be 20%.

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