Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2024
Guangyuyuan channel-stuffing and early revenue recognition; multiple financial reports found to contain false records
The Shanxi Securities Regulatory Bureau found that Guangyuyuan recognized revenue early despite agreements allowing unconditional returns for slow-selling and near-expiry products, and that some sales expenses were miscalculated, causing false records in its annual reports from 2016 to 2022 and its 2023 half-year report. The penalty document imposed penalties on relevant responsible persons. Status: administrative penalty. Entities involved: Guangyuyuan Traditional Chinese Medicine Co., Ltd. and Shanxi Guangyuyuan Guoyao Co., Ltd.
2024
Eight consecutive years of financial fraud; CSRC fines company RMB 8 million
The CSRC found that Guangyuyuan Chinese Medicine Co., Ltd.'s 2016–2022 annual reports and 2023 half-year report contained false records, inflating performance by channel stuffing to distributors, recognizing revenue early, and shifting selling expenses across periods. Separately, its Guoyiguan advertisement claiming that Dingkundan “even severe menopause and amenorrhea fear this” was reported for suspected exaggeration of efficacy. The company was warned and fined RMB 8 million; former chairman Zhang Bin was subject to a 10-year market ban; the Shanghai Stock Exchange imposed disciplinary action.