Shengnuo Bio announced on the evening of October 9 that its wholly owned subsidiary Shengnuo Pharmaceutical and actual controller Wen Yongjun had received an indictment issued by the People's Procuratorate of Yuhuatai District, Nanjing, Jiangsu Province. According to the prosecution opinion from the Yuhuatai branch of the Nanjing Public Security Bureau, Shengnuo Pharmaceutical is suspected of participating in bid-rigging for octreotide acetate injection in the seventh national centralized drug procurement round. Relevant personnel promised benefits, and Shengnuo Pharmaceutical actually won the bid as the fifth-ranked bidder, with illegal gains of 10.98 million yuan during the contract period. The Yuhuatai procuratorate believes that Shengnuo Pharmaceutical and Wen Yongjun colluded with other companies and individuals in submitting bid prices during the seventh national centralized drug procurement round, harming the interests of the tenderer or other bidders, with serious circumstances, violating Article 223, Paragraph 1 of the Criminal Law of the People's Republic of China. The criminal facts are clear and the evidence is reliable and sufficient, so criminal liability for the crime of bid-rigging should be pursued. Shengnuo Bio stated that Wen Yongjun is still performing his duties normally while released on bail pending trial, and the company has made a provision for the above 10.98 million yuan in illegal gains in its 2025 financial statements, which is expected to affect net profit attributable to the parent company this year or in future years. In the first half of this year, the company achieved revenue of 507 million yuan, up 50.27 percent year on year, and net profit attributable to the parent company of 135 million yuan, up 51.98 percent year on year.
Cheng Du Sheng Nuo Biotec Co. Ltd. ASubsidiary and actual controller indicted for bid-rigging in the seventh national drug procurement round, with 10.98 million yuan illegal gains provisioned and potential criminal liability.
