Sanjiu Medical shrugs off CSRC fine

The listed arm of Sanjiu Enterprises, China's largest pharmaceutical group, has been fined 500,000 yuan (about HK$468,600) for failing to disclose information.

Besides fining Shenzhen-based Sanjiu Medical & Pharmaceutical, the China Securities Regulatory Commission (CSRC) has imposed fines ranging from 30,000 yuan to 100,000 yuan on Sanjiu Medical's board of directors.

'We didn't plan the fine into our budget but because the fine is relatively small compared with our company's scale of operations, it won't really have any effect on our results,' Sanjiu Medical company secretary Zhou Hui said.

Sanjiu Medical has until July 25 to pay the fine, according to Mrs Hui.

Sanjiu Medical said that it received the CSRC's notice of the fine on Wednesday, almost a year after the CSRC began an investigation into the company last August.

A routine CSRC inspection of Sanjiu Medical last year discovered that its major shareholders had misappropriated more than one billion yuan.

The CSRC investigation found Sanjiu Medical guilty of failing to disclose large transactions with its parent company, Sanjiu Enterprise Group, according to Sanjiu Medical's statement.