Jinhwa Pharmaceutical Chairman Xing Yajiang Under Investigation

On December 21, 2024, Jinhwa Enterprise (Group) Co., Ltd. released an official announcement stating that the company’s chairman, Xing Yajiang, received a “Notice of Investigation” (No. Zhengjian Investigation No. 0092024002) issued by the China Securities Regulatory Commission (CSRC) on December 20, 2024. The notice indicated that Xing is under investigation by the CSRC for suspected violations of information disclosure laws and regulations, pursuant to the Securities Law of the People's Republic of China and the Administrative Penalty Law of the People's Republic of China.

Jinhwa Enterprise emphasized that this investigation targets Xing Yajiang personally and will not affect the company’s daily production and operations. Currently, the company’s operations remain normal. During the investigation, Xing Yajiang will fully cooperate with the CSRC's inquiry.

According to public information, Xing Yajiang has served as the chairman, legal representative, and general manager of Western Investment Group Co., Ltd. since 1992. He has been a director of the ninth board of directors of Jinhwa Enterprise since June 2020 and assumed the role of chairman of Jinhwa Enterprise in February 2022. Furthermore, since May 22, 2023, Xing has also served as a director of the tenth board of Jinhwa Enterprise.

Jinhwa Enterprise specializes in the production of traditional Chinese medicines, with its core product, Jintenge Capsule, primarily targeting the orthopedic market. This product occupies a significant market share in osteoporosis medications in key urban public hospitals.

The company was established on June 12, 1997, and is listed on the Shanghai Stock Exchange. According to Jinhwa Enterprise’s annual report, its sales system consists of the Jintenge Division, Distribution Division, Generic Drugs Division, and Marketing Department, responsible for product marketing across various channels.