Securities code: Xiangxue Pharmaceutical Co.Ltd(300147) securities abbreviation: Xiangxue Pharmaceutical Co.Ltd(300147) Announcement No.: 2022039 Xiangxue Pharmaceutical Co.Ltd(300147)
Announcement on the receipt of administrative punishment decision by subsidiaries
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
The subsidiary of Xiangxue Pharmaceutical Co.Ltd(300147) (hereinafter referred to as “the company”) Guangdong Jiuji Biotechnology Co., Ltd. (hereinafter referred to as “Jiuji biology”) received the decision on administrative punishment (SUI Huang Shi Jian Chu Zi [2022] No. 101) issued by the market supervision and Administration Bureau of Huangpu District, Guangzhou on May 19, 2022. The company hereby announces the relevant information as follows:
1、 Main contents of the decision on administrative punishment
On November 29, 2021, Guangzhou Huangpu District market supervision and Administration Bureau conducted an investigation on Jiuji biology. It was found that Jiuji biological operated the online mall in the wechat applet named “Jiuji Tong” and advertised the goods on the commodity details page of the online mall. From October 16, 2021 to November 29, 2021, an advertisement with pictures and words was published on the detail page of “talent rhyme collagen fruit drink”, in which the following words were used: (1) “select collagen from German cod” “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.”; (2) “Imported blueberry juice”; (3) “Promoting collagen synthesis, antioxidation, promoting blood circulation and removing blood stasis”; (4) “Rose fragrance replenishes Qi and blood”; （5）“ γ – Aminobutyric acid can strengthen brain and intelligence, promote sleep, beautify and moisturize skin, and delay brain aging function “; (6) “Beautify and protect skin, moisturize hair, plump chest, prevent disease, prevent osteoporosis, shape muscle function and maintain vascular elasticity”, “so as to achieve the purpose of preventing adverse symptoms such as vascular rupture and embolism”. Jiuji biology cannot provide the source, authenticity and scientific basis of the above publicity. Jiuji biology designs, produces and publishes the advertisement by itself. The cost of the advertisement cannot be calculated.
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. In view of the fact that Jiuji biology took the initiative to take off the illegal advertisements, re examined other advertisements that had been released, took off the shelves and deleted other advertisements with problems, resulting in low product sales, it actively cooperated in the investigation process and actively provided evidence materials. Article 55 the people’s Republic of China shall, in accordance with the provisions of Article 9 of the law of the people’s Republic of China, order the publication of illegal advertisements to be stopped within the scope of the corresponding administrative penalty of 250000 yuan.
2、 Measures taken by the company
After discovering the above situation, the company immediately took corrective measures: requiring Jiuji biology to actively adjust the production plan and change the relevant advertisements off the shelf; Punish relevant responsible personnel; Organize the staff to study the advertising law of the people’s Republic of China, the administrative punishment law of the people’s Republic of China and other laws and regulations, improve the internal management system and operating procedures, and standardize the management of product publicity in strict accordance with the regulations. As of the disclosure date of this announcement, relevant rectification has been completed.
3、 Impact on the company
Jiuji biological accepted the above administrative punishment, and the above advertising violations involved did not touch the major illegal compulsory delisting stipulated in articles 10.5.1, 10.5.2 and 10.5.3 of the GEM Listing Rules of Shenzhen Stock Exchange. The company will continue to improve the level of internal management and control, and require subordinate companies to take a warning, organize relevant managers to strengthen the study of advertising related laws and regulations, further improve the awareness of legal compliance of advertising publicity, and eliminate similar situations.
This administrative punishment will not have a significant impact on the production and operation of the company and will not have a significant adverse impact on the business performance. Please invest rationally and pay attention to risks.
It is hereby announced.
Xiangxue Pharmaceutical Co.Ltd(300147) board of directors may 20, 2022
