Shengnuo Bio announced on the evening of October 9 that its wholly owned subsidiary Chengdu Shengnuo Biopharmaceutical Co., Ltd. and actual controller Wen Yongjun had received an indictment from the People's Procuratorate of Yuhuatai District, Nanjing, Jiangsu Province, on suspicion of bid-rigging, with illegal gains of 10.9796 million yuan. According to the announcement, Shengnuo Pharmaceutical is suspected of participating in bid-rigging for the drug octreotide acetate injection in the seventh national volume-based procurement program. Relevant personnel promised, and Shengnuo Pharmaceutical actually won the bid as the fifth-ranked bidder, with illegal gains of 10.9796 million yuan during the contract period. Shengnuo Pharmaceutical sold 7.5107 million units of the injection, with sales amounting to 117 million yuan. Wen Yongjun was released on bail pending trial by the Yuhuatai branch on December 18, 2024, on suspicion of bid-rigging, and was again released on bail pending trial by the Yuhuatai procuratorate on December 17, 2025. He is still performing his duties normally. The procuratorate holds that this case constitutes a joint crime and a unit crime, and that Wen Yongjun, as the directly responsible person in charge, is the principal offender. However, because he surrendered voluntarily and truthfully confessed his crimes, he is considered to have turned himself in and may be given a lighter punishment. The company has already made a provision for the illegal gains of 10.9796 million yuan as an estimated liability in its 2025 financial statements. Because the amount of the fine is not yet determined, it is expected to affect the net profit attributable to shareholders of the listed company for this year or future years.
Cheng Du Sheng Nuo Biotec Co. Ltd. AWholly owned subsidiary and actual controller indicted for bid-rigging in national procurement, with illegal gains of 10.9796 million yuan and potential fines affecting net profit.
The subsidiary itself is prosecuted for bid-rigging the octreotide acetate injection in the seventh national volume-based procurement, with 10.9796 million yuan in illegal gains.
