Kangmei Pharmaceutical Co., Ltd.

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A leading Chinese traditional Chinese medicine company integrating pharmaceutical production, R&D, and sales.

Last updated October 22, 2026

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Overview

Kangmei Pharmaceutical Co., Ltd. is a Chinese pharmaceutical company headquartered in Guangdong, with operations historically associated with Puning and Shenzhen. Founded in 1997 by entrepreneur Ma Xingtian, the company developed from a regional pharmaceutical business into a large producer and distributor of traditional Chinese medicine, proprietary medicines, chemical drugs, pharmaceutical ingredients, health foods, and medical equipment. Its business has also included property-management activities. Traditional Chinese medicine has been central to Kangmei’s identity and commercial scope. Its product portfolio has included medicinal herbs and ingredients such as American ginseng, angelica, honeysuckle, notoginseng, radix codonopsis, and salvia, as well as finished medicines and chemical products including clarithromycin, doxazosin mesylate, paracetamol and pseudoephedrine hydrochloride, and propiverine hydrochloride. Products associated with the company have included Ganmaoling Granule, a traditional medicine marketed for cold and influenza symptoms, and Qingkailing Capsules, a traditional medicine and dietary-health product positioned around immune support. The company has also pursued oncology-related products for conditions including lung and breast cancer. Kangmei began a demutualization process in 2000 and completed an initial public offering on the Shanghai Stock Exchange in March 2001 under ticker 600518. Over time, it built a predominantly domestic distribution network, reportedly extending across China through more than 30 branches and a workforce exceeding 10,000 people. Its scale and focus on traditional Chinese medicine made it a significant participant in China’s pharmaceutical sector, although its business remained primarily oriented toward the Chinese market rather than global consumer-brand recognition. The company’s reputation changed sharply after disclosures concerning its financial reporting. In late 2018, Kangmei announced that it was under investigation for possible disclosure violations. In April 2019, it acknowledged that previously reported cash holdings and operating figures were materially misstated. The China Securities Regulatory Commission later concluded that the company had falsified information in several financial reports, including substantial overstatements of revenue, profit, and monetary funds. The disclosures triggered sharp volatility in its Shanghai-listed shares, risk-alert treatment, regulatory penalties, litigation, and the removal of Kangmei from MSCI’s emerging-markets index. The consequences extended beyond the company. In 2020, the company’s controlling shareholder and founder Ma Xingtian was detained in connection with the case, and the securities regulator also imposed restrictions on GF Securities, the sponsor of Kangmei’s listing, citing its role in the matter. In 2021, Ma received a prison sentence and fine. A representative investor-protection body brought a class-action-style case on behalf of investors, while a court later ordered Kangmei to compensate investors and assigned limited joint liability to several independent directors. Kangmei also faced creditor pressure and a bankruptcy petition during the period of financial distress. Kangmei therefore combines two contrasting aspects in its corporate history: the expansion of a large domestic traditional-Chinese-medicine platform and a major governance and financial-reporting failure that prompted regulatory, judicial, and market responses. Detailed current information about its ownership, executive leadership, and post-restructuring operations is not established by the supplied reference material.

History

Kangmei Pharmaceutical was established in 1997 in Puning, Guangdong, by entrepreneur Ma Xingtian. It developed within China’s expanding pharmaceutical and traditional-Chinese-medicine sector, eventually combining the manufacture and distribution of medicines with activities involving medicinal ingredients, health foods, medical equipment, and property management. The company began a demutualization process in 2000 and listed on the Shanghai Stock Exchange in March 2001 under ticker 600518. Its growth strategy centered on building a large domestic network for traditional Chinese medicine and related products. The company’s reported distribution footprint extended throughout China, with more than 30 branches and a workforce reported at over 10,000 employees. Its portfolio included decoction pieces, proprietary Chinese medicines, chemical drugs, medicinal herbs, dietary supplements, and equipment for medical use. It also pursued medicines associated with cancer treatment, including products for lung and breast cancer. Kangmei’s corporate history was fundamentally altered by its financial-reporting scandal. In late 2018, it disclosed that regulators were investigating possible disclosure violations. The company initially characterized discrepancies in its accounts as accounting errors, but subsequent announcements acknowledged that falsified documents had been involved. In April 2019, it reported that its 2017 annual report had overstated cash holdings by tens of billions of yuan and that its reported operating revenue required a major downward revision. The revelations caused severe share-price volatility, risk-alert treatment on the exchange, and continuing scrutiny from investors and regulators. The CSRC’s investigation concluded in 2019 that Kangmei had deliberately and maliciously misled investors through false financial statements. The regulator imposed penalties on the company and 22 individuals and banned several parties from the securities market. The case was widely viewed as an important test of China’s listed-company disclosure regime and raised concerns among international investors because Kangmei had been included in MSCI’s emerging-markets index. MSCI subsequently removed the company from the index. During the same period, Kangmei experienced severe liquidity and bond pressure, with reports describing government-associated assistance in Guangzhou. Legal and regulatory consequences continued after the initial disclosures. In 2020, founder and actual controller Ma Xingtian was detained, while GF Securities, the sponsor of Kangmei’s initial public offering, was temporarily restricted by the CSRC because of its role in the matter. A representative investor-protection organization filed a case for more than 50 investors in April 2021. A creditor also sought bankruptcy proceedings that year. In November 2021, Ma was sentenced to 12 years in prison and fined 1.2 million yuan. The Guangzhou Intermediate People’s Court later ordered Kangmei to compensate investors for approximately 2.459 billion yuan and required five independent directors to bear 5% to 10% joint liability. The judgment contributed to wider concern among Chinese listed companies about the personal exposure of independent directors. The available reference material does not establish a complete account of Kangmei’s current ownership, executive team, restructuring arrangements, or present product performance. Its documented historical identity is that of a major Chinese traditional-Chinese-medicine company whose expansion was followed by a severe accounting, governance, and investor-compensation crisis.

2021
Investor litigation and criminal judgment
[1]Kangmei Pharmaceuticalen.wikipedia.org
Investor litigation proceeded, Ma Xingtian received a prison sentence, and a court ordered Kangmei to compensate investors while assigning limited joint liability to five independent directors.
2020
Founder detained
[1]Kangmei Pharmaceuticalen.wikipedia.org
Ma Xingtian was detained in connection with the financial-fraud case.
2019
Financial-reporting scandal becomes public
[1]Kangmei Pharmaceuticalen.wikipedia.org
Kangmei acknowledged major misstatements in reported cash, revenue, and other financial information, leading to market disruption and regulatory action.
2019
CSRC penalties and market sanctions
[1]Kangmei Pharmaceuticalen.wikipedia.org
The CSRC concluded that Kangmei had falsified financial reports and penalized the company and associated individuals. MSCI later removed Kangmei from its emerging-markets index.
2018
Investigation into disclosure violations announced
[1]Kangmei Pharmaceuticalen.wikipedia.org
The company disclosed that it was under investigation over possible violations involving information disclosure.
2001
Shanghai Stock Exchange listing
[1]Kangmei Pharmaceuticalen.wikipedia.org
Kangmei completed its initial public offering on the Shanghai Stock Exchange under ticker 600518.
2000
Demutualization process begins
[1]Kangmei Pharmaceuticalen.wikipedia.org
Kangmei began the process of converting its ownership and corporate structure ahead of its public listing.
1997
Company founded in Puning
[1]Kangmei Pharmaceuticalen.wikipedia.org
Ma Xingtian founded Kangmei Pharmaceutical in Puning, Guangdong.

Products and positioning

A large domestic Chinese pharmaceutical company with a strong traditional-Chinese-medicine orientation.

Traditional Chinese medicine
Traditional Chinese medicine decoction pieces
Decoction pieces and prepared medicinal materials form the core of Kangmei’s traditional-Chinese-medicine business. The category includes processed herbs and ingredients supplied through the company’s domestic manufacturing and distribution network. The reference material identifies this line as one of the company’s principal activities, but does not provide a complete product catalogue or current sales data.
Pharmaceutical ingredients
Medicinal herbs and ingredients
Kangmei has manufactured or distributed medicinal materials including American ginseng, angelica, honeysuckle, notoginseng, radix codonopsis, and salvia. These materials support traditional Chinese medicine preparations and related pharmaceutical applications. The available material does not specify whether every named item remains in the current portfolio.
Proprietary traditional Chinese medicine
Ganmaoling Granule
Ganmaoling Granule is identified as a popular Kangmei-associated traditional Chinese medicine product marketed for cold and influenza symptoms. The reference material states that the product had been in production for more than 30 years, but does not establish its original launch date or current commercial status.
Traditional medicine and dietary-health product
Qingkailing Capsules
Qingkailing Capsules are described in the reference material as a Kangmei-associated health-oriented product positioned around immune support. No detailed formulation, regulatory classification, launch date, or current availability is established by the supplied sources.
Chemical pharmaceuticals
Chemical drug portfolio
The company’s chemical-drug portfolio has included clarithromycin, doxazosin mesylate, paracetamol and pseudoephedrine hydrochloride, and propiverine hydrochloride. These products complement Kangmei’s traditional-Chinese-medicine activities, although the supplied material does not provide product-by-product launch dates or current regulatory status.
Specialty pharmaceuticals
Oncology medicines
Kangmei has identified cancer treatment as an important development direction and has brought products to market associated with lung cancer, breast cancer, and other tumors. The reference material does not identify the individual products, indications, or present status in sufficient detail.
Medical devices
Medical equipment
Medical equipment is part of Kangmei’s stated manufacturing and distribution scope. The available sources do not identify particular device families, brands, or current market availability.
Health and wellness
Health foods and dietary supplements
Kangmei has operated in health foods and dietary supplements alongside its pharmaceutical and traditional-medicine activities. Qingkailing Capsules are cited as an example of a health-oriented offering, but the available material does not establish the complete range or current status.

Controversies

2021
Former Chairman Ma Xingtian Sentenced to 12 Years in First Instance for Securities Market Manipulation and Bribery
In 2021, a court found Kangmei's former chairman Ma Xingtian guilty of securities market manipulation, failure to disclose important information as required, and corporate bribery, among other offenses, and sentenced him to 12 years after combining the penalties. This entry supplements the criminal outcome of the financial fraud exposed in 2019; criminal liability is limited to the parties named in the judgment.
Source
2021
First Securities Special Representative Action Awards About RMB 2.459 Billion in Damages to Investors
In 2021, the first-instance ruling in the special representative action over Kangmei Pharmaceutical's false statements awarded about RMB 2.459 billion in damages to more than 50,000 investors, with relevant executives and the auditing firm bearing joint liability to varying extents. This entry concerns the investor class action and liability for damages; it does not mean the full amount has been paid out.
Source
2020
CSRC imposes securities-market bans on Kangmei Pharmaceutical case principals
In its decision in the Kangmei Pharmaceutical violations case, the China Securities Regulatory Commission (CSRC) imposed securities-market bans ranging from 10 years to lifetime on six principal responsible persons. The CSRC also stated that it had transferred suspected criminal conduct by the company and related persons to judicial authorities. The decision addressed the principals identified in the case and set out the market-entry restrictions applied to them, alongside the referral of suspected criminal matters for judicial handling.
Source
2020
Regulator Penalizes Kangmei Pharmaceutical for Financial Fraud
China's securities regulator issued an administrative penalty and a market-entry ban decision against Kangmei Pharmaceutical, ordering the company to rectify its conduct, issuing a warning, and imposing a fine of 600,000 yuan. The regulator determined that Kangmei Pharmaceutical had inflated revenue and cash, among other financial-reporting misconduct, during the period from 2016 to 2018. The action was announced in May 2020.
Source
2019
Kangmei financial-reporting fraud
Kangmei admitted that earlier financial reports contained major false statements, including inflated cash holdings, revenue, and profits. The CSRC later characterized the conduct as deliberate and imposed penalties on the company and individuals. The scandal led to trading restrictions, index removal, investor litigation, criminal proceedings, and substantial compensation claims.
Source

2019
Correction of previously reported financial informationOther
Background
Regulatory scrutiny identified inconsistencies between Kangmei’s reported cash holdings and the limited interest income generated by those holdings.
Action taken
Kangmei disclosed that its 2017 annual report had materially overstated cash and that reported operating revenue and other figures required revision.
Aftermath
The disclosures caused sharp share-price declines, risk-alert treatment, further investigation, regulatory penalties, and the removal of Kangmei from MSCI’s emerging-markets index.
Restated financial figures. The CSRC later determined that reported revenue had been overstated by approximately 29 billion yuan, profits by approximately 4.1 billion yuan, and monetary funds by approximately 88.7 billion yuan. (Financial reports covering 2016–2019, with the initial public disclosure focused on the 2017 annual report)
Source
2019
Regulatory and market response to the accounting scandalOther
Background
The CSRC concluded that Kangmei had engaged in premeditated and malicious deception of investors through false financial reporting.
Action taken
Regulators imposed administrative penalties on Kangmei and 22 individuals, while several parties were barred from the securities market. The exchange placed the shares under special treatment, and MSCI removed Kangmei from its emerging-markets index.
Aftermath
The case generated prolonged litigation, criminal proceedings, creditor pressure, and debate about Chinese listed-company oversight and the risks faced by international index investors.
Source
2001
Public listing on the Shanghai Stock ExchangeStrategy
Background
After beginning demutualization in 2000, Kangmei pursued access to public capital and a broader corporate platform.
Action taken
The company completed an initial public offering and began trading under ticker 600518.
Aftermath
The listing supported Kangmei’s development as a large publicly traded Chinese pharmaceutical company, but also subjected it to listed-company disclosure and governance obligations.
Source

Recent events

2021-12-29
Kangmei Pharmaceutical completes restructuring[9]康美药业破产重整计划执行完毕finance.qianlong.com
The Jieyang Intermediate People's Court ruled that Kangmei Pharmaceutical's bankruptcy restructuring plan had been fully implemented and terminated the restructuring proceedings. The report says all company debts had been repaid through cash, shares and trust interests.
2021-12-20
Kangmei begins repayments under its restructuring plan[10]康美药业启动重整计划项下清偿finance.sina.com.cn
Reported: 2021-12-20
Kangmei Pharmaceutical entered the execution stage of its court-approved restructuring plan, with repayments to more than 52,000 securities investors and other creditors beginning on December 20.
Unconfirmed
CSRC imposes securities-market bans on Kangmei Pharmaceutical case principals[7]CSRC imposes securities-market bans on Kangmei Pharmaceutical case principalsfinance.sina.com.cn
Reported: 2020-05-18
As part of its decision in the Kangmei Pharmaceutical violations case, the CSRC imposed securities-market bans of between 10 years and lifetime on six principal responsible persons. The CSRC also said it had transferred suspected criminal conduct by the company and related persons to judicial authorities.
Unconfirmed
China Securities Regulatory Commission fines Kangmei Pharmaceutical for financial fraud[8]Regulator Penalizes Kangmei Pharmaceutical for Financial Fraudfinance.sina.com.cn
Reported: 2020-05-14
China's securities regulator imposed an administrative penalty and market-entry ban decision on Kangmei Pharmaceutical, ordering it to rectify its conduct, issuing a warning, and fining it 600,000 yuan. The regulator determined that Kangmei Pharmaceutical had inflated revenue and cash, among other financial-reporting misconduct, from 2016 to 2018.

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