Kanghui Pharmaceuticals (603139.SH) controlling subsidiary Shaanxi Youbang has suspended production.

Intelligence Financial APP News, Kanghui Pharmaceutical (603139.SH) released an announcement stating that due to the impact of the industry's overall environment, the market competition for the company's products has intensified, leading to a continuous decline in product sales gross margin. The company's controlling subsidiary, Shaanxi Youbang, plans to adjust its other products and switch to the production of multiple new products. However, due to reasons such as product technology, equipment upgrades, and immature technology, the adjustment of products has not been smooth, leading to continued losses for Shaanxi Youbang. In order to prevent further losses and protect the interests of shareholders, Shaanxi Youbang has decided to suspend production in workshops 1, 2, and 3, starting from today. The decision to resume production will be made based on market conditions in the future.