Magic Pharmaceuticals: Abnormal Fluctuations in Stock Trading and Related Risk Alerts

The announcement from Magic Pharmaceuticals states that the company's stock hit the daily limit increase on three consecutive trading days on August 13, 14, and 17, 2026, with a cumulative increase of 33.02%. The closing price has deviated by more than 20% from its previous growth rate, constituting an abnormal fluctuation in stock trading. In the first quarter of 2026, the company achieved revenue of 423 million yuan, a year-on-year decline of 11.87%, with a net profit of 12.6772 million yuan, also down 15.44% year-on-year. As of the close on August 17, 2026, the companys dynamic price-to-earnings ratio was 73.06 times, higher than the industry average. The companys controlling shareholder, Zhang Zhijun, has reduced his stake by 1%, with an intention to further reduce 1.69% of shares through block trading, with the completion date set for August 25, 2026. The company is currently operating normally and there are no significant undisclosed information that should be disclosed.