Notice of Kangzhi Pharmaceutical Co., Ltd.: unrealized profits and related transactions

Kangzhi pharmaceutical, which was just put on file by Hainan securities regulatory bureau for investigation last week, issued a Clarification Announcement on the evening of the 22nd, saying that there was no undisclosed related party transaction or fictitious transaction to increase profits According to the announcement, he Xiaomei's case is being handled by the relevant judicial organs according to law   He Xiaomei, a former employee of Kangzhi pharmaceutical, posted a report to the media Kangzhi pharmaceutical's stock was suspended on May 23 due to several acts of fraud Kangzhi pharmaceutical clarified that he Xiaomei demanded after tax special reward fees from the chairman of the company under the threat of reporting or disseminating the company's business secrets Therefore, the company called the police and the procuratorial organ arrested him on suspicion of extortion   In response to the problem of "virtual increase of profits in Kangzhi pharmaceutical industry", the announcement said that in order to reduce transaction costs and simplify transaction procedures, the trading mode of "direct drug transfer business" approved by the pharmaceutical regulatory department was adopted Both parties of such transactions have signed contracts, issued invoices and collected or paid for goods All transactions are true   In response to the issue of "connected transactions", the company indicated that there were no undisclosed connected transactions The company said six companies in question had no related party transactions   In response to the problem of "cash out of advertising expenses", the company pointed out that the advertising expenses of Xiangyun pharmaceutical, a subsidiary, were the needs of product publicity It signed an advertising contract with the advertising company and paid for it in accordance with the contract, and the advertisements were actually put in.