On the evening of May 5, Xianju Pharmaceutical (002332.SZ) issued an announcement on the Shenzhen Stock Exchange stating that the company received the "Administrative Penalty Decision" issued by the Tianjin Market Supervision and Administration Commission on April 30. The penalty decision determined that Xianju Pharmaceutical and other operators with competitive relationships changed and fixed the price of dexamethasone sodium phosphate raw materials in the form of a monopoly agreement, violating the Anti-Monopoly Law of the People's Republic of China, and were fined RMB 195 million (of which 23.7467 million of illegal income was confiscated and 171 million yuan was fined 8% of sales in 2023). Zhang Yusong, the main person in charge of the company, was fined 600,000 yuan, accounting for 4.88% of the company's revenue in the previous year and 49.17% of the company's net profit. The company's announcement pointed out that the penalty did not affect the situation of forced delisting of major violations, which would have a certain negative impact on the company's current financial statements, but it did not affect normal operation and development.

According to the "Administrative Penalty Decision", the Tianjin market supervision department also imposed administrative penalties on Tianjin Pharmaceutical (600488.SH) and Lianhuan Pharmaceutical (600513.SH) on the same matter. The penalties include: Tianjin Pharmaceutical confiscation of illegal income of 42.7644 million yuan and imposed a fine of 8% of sales in 2023. In combination with the leniency, the actual fine of 26.428 million yuan was imposed, and a total fine of 69.1924 million yuan was imposed; Lianhuan Pharmaceutical confiscated illegal income of 17.8992 million yuan and imposed a fine of 8% of sales in 2023. In combination with the leniency, the actual fine of 43.139 million yuan was imposed, and a total fine of 61.0382 million yuan was imposed. All the above three companies were ordered to stop the relevant illegal acts because of their participation in the monopoly agreement.

[Editor in charge: Li Chen]