Lianhuan Pharmaceutical (600513.SH) received the “Administrative Penalty Decision”

Zhitong Finance App News, Lianhuan Pharmaceutical (600513.SH) issued an announcement. Recently, the company received the “Administrative Penalty Decision” (Tianjin Municipal Administration and Monopoly Department [2025] No. 5) issued by the Tianjin Municipal Market Supervision and Administration Commission.

The Tianjin Municipal Market Supervision and Administration Commission believes that the company and operators with competitive relationships have changed and fixed the price of dexamethasone sodium phosphate APIs in the form of a monopoly agreement, which excludes and limits competition in the field of dexamethasone sodium phosphate API sales, violates the provisions of Article 17 (1) of the Anti-Monopoly Law of the People's Republic of China, is an act of reaching and implementing a “fixed or changing commodity price” monopoly agreement, and should be prosecuted for legal liability in accordance with the provisions of section 56 of the Anti-Monopoly Law.

According to the provisions of Article 59 of the Anti-Monopoly Law, when determining the amount of the fine, the anti-monopoly law enforcement agency shall take into account the nature, extent, duration and elimination of the consequences of the violation, degree of cooperation, cessation of the illegal act and other relevant circumstances. Combining the above factors, the Tianjin Municipal Market Supervision and Administration Commission decided to order the company to stop the illegal act and imposed the following administrative penalties on the company in accordance with Article 56 (1) and Article 59 of the Anti-Monopoly Law: (1) Confiscation of the illegal proceeds of 17,899,200.00 yuan. (2) A fine of $61,627,211.20 of 8% of sales in 2023 was also imposed. Combined with leniency, 30% of the fine amount was reduced. The actual fine was $43,139,047.84 after the relief. The total amount of the above forfeiture was $61,038,247.84.

The forfeiture amounts accounted for 2.83% and 72.53% of the audited operating income and net profit attributable to shareholders of the listed company for the most recent fiscal year covered by the company's consolidated statements, respectively. The above amount of forfeiture will accordingly reduce the company's net profit attributable to shareholders of listed companies by 61,038,247.84 yuan in 2025. The “Administrative Penalty Decision” received by the company this time does not address the “Shanghai Stock Exchange Stock Exchange Stock Listing Rules” and other regulations relating to the company's major illegal and forced delisting, nor will it have a continuous impact on the company's production and operation.