Shanghai Shengqi Pharmaceutical Co., Ltd. has been issued an administrative supervision and control decision by the Securities Regulatory Bureau for violating disclosure regulations.

On September 26, 2025, Shanghai Magic Pharmaceuticals Investment Management Co., Ltd. received the "Administrative Supervision Measures Decision" from the Shanghai Securities Regulatory Bureau. It was found that in 2023, the company used the "Basic Drug Promotion Plan" to embezzle sales expenses of 44,838,280 yuan, by transferring fictitious accounts receivable returns through employees' personal accounts, transferring back credit impairment provisions, resulting in errors in the 2023 annual report disclosure. The then chairman of the company ZHANGTAOTA0, the then general manager Feng Bin, and the then chief financial officer Chen Zhimian did not fulfill their duties diligently. The Shanghai Securities Regulatory Bureau decided to order the company to make corrections and submit a rectification report within 30 days; warnings letters were issued to the three individuals. The company stated that it will actively rectify, standardize accounting procedures, and improve the performance of directors and other personnel, and that this regulatory measure will not affect normal operations.