Controversies

Hualan Vaccine Warned for Undisclosed Cash Management Beyond Authorization

In January 2024, the Henan Securities Regulatory Bureau determined that Hualan Biological Vaccine Co., Ltd. used raised funds for cash management up to RMB 1.25 billion, exceeding the board’s authorization by RMB 250 million and failing to disclose it in a timely manner. It issued warning letters to the company and its CFO, and the Shenzhen Stock Exchange issued a regulatory letter at the same time. In 2024, its flu vaccine WHO prequalification was withdrawn; the company said this was due to the shutdown of the original workshop. Media also questioned fund flows and related-party transactions between parent and subsidiary companies in the “Hualan system.” The matter was recorded in the integrity file and rectification was carried out.