Jinghua Pharmaceutical: Subsidiary pollution lawsuit verdict, fines and penalties offset do not need to be paid again.

The Essence Pharmaceutical announced that its subsidiary Ningxia Senxuan was sued for environmental pollution. In February 2024, Huang Xionghu, the head of the environmental department of Ningxia Senxuan, arranged the transportation of about 150 tons of waste water, which was directly dumped, causing environmental pollution. On December 23, 2025, Ningxia Senxuan was found guilty of environmental pollution, fined 500,000 yuan, which was offset by the 900,000 yuan already paid; Huang Xionghu was sentenced to two years and six months in prison, with a three-year probation, and had paid a fine of 60,000 yuan. The amount involved in this case is small and will not have a significant impact on the company's net profit for 2025, nor will it lead to the company being forced to delist due to major violations.