Jilin Pharmaceutical Co., Ltd(stock code:000545) involved recent chromium-tainted capsule scandal,and it will be delisted from the stock exchange due to deficit over three consecutive years, the media said.
As the drug maker, Jilin Pharmaceutical said in a statement on May 9th that it was halted trading on the Shenzhen Stock Exchange after regulators found it sold 525,600 chromium-tainted capsules in 2011 and has lost money over three consecutive years. Analysts said that it is hard for the company to regain profitability any time soon as its image has been seriously tarnished by the capsule scandal. The company reported losses of 5.56 million yuan ($881,338) in 2011. In 2010, its net losses were as high as 47.33 million yuan, nearly three times that of 2009. Analysts said that the negative publicity may further hurt its business in 2012.
According to the new delist rules published by the SZSE, if the company cannot gain profit in 2012, it will be the delisted company after the new policy of delisting announced.Now Jilin Pharmaceutical Co., Ltd likely to be the first.