Chinese pharmaceutical company Sihuan Pharma listed on the Hong Kong Stock Exchange in October 2010, raising HK$6.6bn (HK$850m). Almost five years later, in March 2015, the company announced a delay to its FY14 financials as auditors needed more time. The company’s shares were suspended in line with stock exchange listing rules. An independent investigation concluded that external marketing research agents should be consolidated into the company's financials and that certain distribution expenses should be netted-off against revenue. This resulted in FY13 revenue being revised down by 45% although profit remained largely unchanged. The company resumed trading in February 2016, almost a year after first being suspended. However, it continues to have problematic financials, as evidenced by substantial impairment charges in FY19.

Last updated August 2021

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