Punished twice within half a year Xiangxue Pharmaceutical Co.Ltd(300147) trapped in false publicity storm

Due to false publicity, Xiangxue Pharmaceutical Co.Ltd(300147) will receive a ticket again. On May 22, Xiangxue Pharmaceutical Co.Ltd(300147) announced that the subsidiary Jiuji biology used expressions such as “promoting collagen synthesis, antioxidation, promoting blood circulation and dispersing blood stasis” in the publicity of “tianziyun collagen fruit drink”, but failed to provide the source of the above publicity and the basis of authenticity and scientificity, and was fined 250000 yuan. This is not the first time that Xiangxue Pharmaceutical Co.Ltd(300147) company publicized rollover. In November 2021, Xiangxue pharmaceutical of Xiangxue Pharmaceutical Co.Ltd(300147) Sun company received the decision on administrative punishment issued by Guangzhou Huangpu District market supervision and Administration Bureau for false publicity. Industry insiders believe that it is an important factor for enterprises to take risks by improving product sales through false publicity. The annual performance report previously released by Xiangxue Pharmaceutical Co.Ltd(300147) showed that the company lost 688 million yuan in 2021, a sharp year-on-year decrease of 799.51%.

false publicity, fined 2 5 ten thousand yuan

“Promoting collagen synthesis, anti-oxidation, promoting blood circulation and dispersing blood stasis” ·········· Xiangxue Pharmaceutical Co.Ltd(300147) subsidiary Jiuji biology made a functional claim on its products. Because it could not provide the source, authenticity and scientific basis, the company received the decision on administrative punishment.

On May 22, Xiangxue Pharmaceutical Co.Ltd(300147) disclosed the announcement that the subsidiary received the decision on administrative punishment, which said that the market supervision and Administration Bureau of Huangpu District, Guangzhou found that Jiuji biological operated the online mall in the wechat applet named “Jiuji Tong”, and published an advertisement on the commodity details page of the online mall to promote the “tianziyun collagen fruit drink”, in which the advertisement with pictures and words was published on the details page, Including “the content of type I collagen in German deep-sea cod is 70% – 80%, and the molecular weight is suitable for 10 Shanxi Securities Co.Ltd(002500) daltons. It has strong permeability and high purity. It can be absorbed by the human body in a short time and directly enter the skin and dermal tissue”, “promote collagen synthesis, antioxidant, promote blood circulation and disperse blood stasis”“ γ- “Amino butyric acid” is used to promote the functions of skin care, brain care, beauty and so on.

However, Jiuji biology cannot provide the source, authenticity and scientific basis of the above publicity. According to the decision on administrative punishment, the above-mentioned acts of Jiuji biology violate the provisions of Article 17 and item 2 of Article 28 of the advertising law of the people’s Republic of China.

After comprehensive consideration, Guangzhou Huangpu District market supervision and Administration Bureau, in accordance with the provisions of paragraph 1 of Article 32 of the administrative punishment law of the people’s Republic of China and Article 55 of the advertising law of the people’s Republic of China, decided to order Jiuji biology to stop publishing illegal advertisements, order it to eliminate the impact within the corresponding scope, and impose a fine of 250000 yuan.

Zhang Wenbo, senior partner of Beijing Jundu law firm and director of the legal department of life science and health care, said in an interview with the Beijing Business Daily that the “talent rhyme collagen fruit drink” product is publicized in the small program mall held by the manufacturer, which has a certain concealment. The production cost of such products is not high, but through exaggerated publicity, high sales prices can be marked. Compared with the illegal cost, enterprises can obtain higher benefits, which is an important reason for their desperation.

For the reasons of false publicity and other issues, the reporter of Beijing business daily contacted Xiangxue Pharmaceutical Co.Ltd(300147) aspects, but as of press time, no reply has been received.

overturned many times and lost money last year . 88 billion yuan

Driven by interests, Xiangxue Pharmaceutical Co.Ltd(300147) has not received a ticket for false publicity for the first time.

As early as November 2021, Xiangxue pharmaceutical, a subsidiary of Xiangxue Pharmaceutical Co.Ltd(300147) sun company, was administratively punished by the market supervision and Administration Bureau of Huangpu District, Guangzhou. Xiangxue pharmaceutical published “epidemic prevention at home”, “recommended by Guangzhou Municipal Health Commission” and “continuous opening of Guangzhou epidemic prevention and control expert group of traditional Chinese medicine” on its website and wechat official account to publicize the bottled herbal tea beverage “yuekang No. 1”, but could not provide materials to prove it. In addition, Jiuji biology once published health food advertisements containing “tumor prevention” and other contents, involving disease prevention and treatment functions, violating the relevant provisions of the advertising law, and was publicized by the State Administration of market supervision as “the second batch of typical cases of false and illegal advertisements in 2019”.

Zhang Wenbo said that from the perspective of categories, Xiangxue Pharmaceutical Co.Ltd(300147) the product category punished twice is beverages, which can not produce consumption impulse for potential consumers. Through functional publicity, enterprises can stimulate consumers to buy and promote sales.

Deng Yong, a professor of Law Department of Beijing University of traditional Chinese medicine, said in an interview with the Beijing Business Daily that the essence of enterprises’ exaggerated publicity behavior is interest driven. Enterprises do not register and approve health products or drugs for these ordinary foods that claim efficacy, but through efficacy and other publicity, consumers can be attracted to buy products and make profits.

Behind the urgent need for profit is Xiangxue Pharmaceutical Co.Ltd(300147) sluggish performance. As a company with traditional Chinese medicine manufacturing as its main business, Xiangxue Pharmaceutical Co.Ltd(300147) has formed the whole industrial chain layout of “pharmaceutical great health industrial chain” of “traditional Chinese medicine planting – traditional Chinese medicine decoction piece production – traditional Chinese patent medicine manufacturing – pharmaceutical circulation”.

However, in the market environment of frequent medical reform policies and intensified competition, Xiangxue Pharmaceutical Co.Ltd(300147) ‘s performance began to be under pressure, and the growth of leading products slowed down. In April this year, Xiangxue Pharmaceutical Co.Ltd(300147) released the 2021 performance report, which showed that the company achieved a revenue of 2.971 billion yuan, a year-on-year decrease of 3.3%; The loss was 688 million yuan, down 799.51% year-on-year. Among them, the sales volume of Xiangxue Pharmaceutical Co.Ltd(300147) leading product antiviral oral liquid decreased by 47.5% compared with the previous year, and the revenue was only 180 million yuan, a decrease of 55.73% compared with the same period of the previous year.

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