
Kangmei Pharmaceutical has a rich history dating back to 1981, when it was first established in China.
The company has grown significantly over the years, with a current market capitalization of over $10 billion.
Kangmei Pharmaceutical has a diverse portfolio of products, including traditional Chinese medicine and modern pharmaceuticals.
Their product offerings cater to a wide range of therapeutic areas, including cardiovascular, respiratory, and digestive health.
History and Scandal
Kangmei Pharmaceutical has a complex history that's worth exploring. The company was founded in 1997 by entrepreneur Ma Xingtian in Puning, Jieyang, Guangdong.
In 2000, Kangmei began the process of demutualization, which likely involved significant changes to its business structure. It was listed on the Shanghai Stock Exchange in March 2001, with the ticker 600518.
Kangmei almost defaulted on bonds in 2019, but was rescued by the Guangzhou city government. This event highlights the company's financial struggles and the importance of government support.
History
Kangmei Pharmaceutical was founded in 1997 by entrepreneur Ma Xingtian in Puning, Jieyang, Guangdong.
The company began the process of demutualization in 2000.
In 2001, Kangmei Pharmaceutical was listed on the Shanghai Stock Exchange with the ticker 600518 in an initial public offering that took place in March.
Kangmei almost defaulted on bonds in 2019, but was rescued by the Guangzhou city government.
2016-2019 Financial Scandal
The 2016-2019 Financial Scandal was a major controversy that shook the financial world. It was sparked by the collapse of several high-profile financial institutions, including Wells Fargo and Equifax.
The scandal began in 2016 when it was discovered that Wells Fargo employees had been opening millions of unauthorized bank and credit card accounts in customers' names. This led to a massive backlash against the bank and its CEO, John Stumpf.
In 2017, Equifax announced that it had been hacked, compromising the personal data of over 147 million people. This was one of the largest data breaches in history, and it had serious consequences for those affected.
The Equifax hack was particularly egregious because it involved sensitive information like social security numbers and birthdates. This made it a prime target for identity theft and other types of financial fraud.
Regulators and lawmakers were quick to respond to the scandal, with many calling for greater oversight and accountability in the financial industry.
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Financial Information
Kangmei Pharmaceutical Co., Ltd's annual revenue was $677.4 million in 2025.
The company's financial struggles are well-documented, with a court ordering it to pay $385 million to investors who lost money due to financial fraud.
Kangmei's 2020 losses reached 27.7 billion yuan, a nearly five-fold increase from 4.7 billion yuan the previous year.
The company was fined 600,000 yuan in May 2020 by top securities regulators for inflating revenues and fabricating bank deposits.
Kangmei's creditors will vote on a restructuring plan Monday, which includes setting aside 2.46 billion yuan of cash, stock, and beneficial share of trust for expected compensation in the class-action lawsuit.
SIC Code for Company
The SIC code for a company is a crucial piece of information for investors and researchers.
Kangmei Pharmaceutical Co., Ltd has a SIC code of 28 and 283.
Understanding the SIC code can help you analyze a company's financial performance and industry trends.
The SIC code for Kangmei Pharmaceutical Co., Ltd indicates that the company operates in the pharmaceutical manufacturing industry.
If you're researching companies in the pharmaceutical industry, knowing the SIC code can be a valuable tool for your analysis.
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Financials
The financials of Kangmei Pharmaceutical Co., Ltd are quite impressive. The company's annual revenue was $677.4 million in 2025.
Its valuation has fluctuated over the years, with a capitalization of up to $37.39B in 2025.
The company's P/E ratio has also seen significant changes, reaching as high as 3,900x in 2024.
In terms of enterprise value, Kangmei Pharmaceutical Co., Ltd has had a range of $27.51B to $36.28B in recent years.
Here's a breakdown of the company's valuation metrics for your reference:
The free-float of Kangmei Pharmaceutical Co., Ltd is a significant 69.77%.
Pay $385M to Investors
Kangmei Pharmaceutical Co. was ordered to pay $385 million to over 50,000 investors as compensation for their losses on the company's stock.
The court found the company, its executives, and auditors responsible for financial fraud that caused 2.46 billion yuan of losses to investors.
The defendants include former Chairman Ma Xingtian, his wife, and 13 other executives who were ruled partially responsible for the losses.
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Kangmei was accused of financial reporting fraud involving 88.6 billion yuan of overstatements between 2016 and 2018.
The company was fined 600,000 yuan in May 2020 by top securities regulators for inflating revenues and fabricating bank deposits.
Regulators found that Kangmei used fake bank deposit slips to inflate cash reserves and forged documents for nonexistent business activities.
Kangmei's 2020 losses reached 27.7 billion yuan, up nearly five-fold from 4.7 billion yuan a year earlier.
The company's creditors will vote on a restructuring plan that includes setting aside 2.46 billion yuan for expected compensation in the class-action lawsuit.
Investors with losses of less than 500,000 yuan will get cash payments, while those with losses of more than 500,000 yuan will receive cash, stock, and beneficial share of trust.
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Management and Directors
Kangmei Pharmaceutical has a strong leadership team in place, with several key executives and directors playing important roles in the company's success.
The Chief Executive Officer (CEO) of Kangmei Pharmaceutical is Guo Wei Liu, who has been in the position since October 9, 2020.
Gui Bo Gong serves as the Director of Finance and Chief Financial Officer (CFO), a role she took on May 25, 2021.

Min Li is the Investor Relations Contact, a position she has held since January 6, 2022.
Xiao Ping Lai is a Director on the board of Kangmei Pharmaceutical, a role he has held since October 29, 2020.
Yan Zhu Gao is the Chairman of the company, a position he has held since October 29, 2020.
Qi Mi is also a Director on the board, a role she has held since January 24, 2022.
Here is a list of the key executives and directors at Kangmei Pharmaceutical:
Products and Drugs
Kangmei Pharmaceutical specializes in traditional Chinese medicine, manufacturing and distributing medication, health foods, and medical equipment. Their products include American ginseng, angelica, clarithromycin, and other traditional Chinese medicine ingredients.
Some of Kangmei's popular products include "Ganmaoling Granule", a traditional Chinese medicine for treating colds and flu, which has been in production for over 30 years. They also offer dietary supplements like "Qingkailing Capsules" designed to strengthen the immune system.
The company focuses on developing methods for treating various types of cancer, including lung cancer, breast cancer, and other tumours. They have brought several drugs to the market for these conditions.
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Products and Services

Kangmei Pharmaceutical has a diverse portfolio of products and services that cater to various health needs. Their main focus is on traditional Chinese medicine.
They manufacture and distribute medication, health foods, and medical equipment. Kangmei Pharmaceutical has a strong presence in the domestic market, with over 30 branches nationwide and more than 10,000 employees.
Some of their popular products include "Ganmaoling Granule", a traditional Chinese medicine for treating colds and flu, which has been in production for over 30 years. This product has been a staple in many Chinese households for decades.
Their product line also includes dietary supplements like "Qingkailing Capsules", designed to strengthen the immune system.
Here are some of the key products manufactured by Kangmei Pharmaceutical:
- American ginseng
- Angelica
- Clarithromycin
- Doxazosin mesylate
- Honeysuckle
- Notoginseng
- Paracetamol
- Pseudoephedrine hydrochloride
- Propiverine hydrochloride
- Radix codonopsis
- Salvia
Clinical Trials
Kangmei Pharmaceutical Co Ltd conducts clinical trials to test the safety and efficacy of their products.
Their go-to-market proposition is built around the results of these trials.
The company focuses on recruitment and trial strategy to ensure successful outcomes.
Investor Information
Kangmei Pharmaceutical has been ordered to pay $385 million to over 50,000 investors as compensation for their losses on the company's stock.
The court found the company's former executives, including Chairman Ma Xingtian and his wife, 100% liable for the losses. They deliberately organized and implemented financial fraud that caused 2.46 billion yuan of losses to investors.
Investors with losses of less than 500,000 yuan will receive cash payments, while those with losses of more than 500,000 yuan will receive a combination of cash, stock, and beneficial share of trust.
Kangmei's creditors will vote on a restructuring plan that includes setting aside 2.46 billion yuan for expected compensation in the class-action lawsuit.
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Competitor Comparison
Kangmei Pharmaceutical Co Ltd has several competitors in the industry, including China National Accord Medicines Corporation Ltd, Jiangsu Nhwa Pharmaceutical Co Ltd, China Resources Jiangzhong Pharmaceutical Group Co Ltd, and MaYinglong Pharmaceutical Group Co Ltd.
These competitors are all based in China, with headquarters located in different cities across the country. Kangmei Pharmaceutical Co Ltd is headquartered in Shenzhen, Guangdong, while China National Accord Medicines Corporation Ltd is also based in Shenzhen, Guangdong.
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China Resources Jiangzhong Pharmaceutical Group Co Ltd is headquartered in Nanchang, Jiangxi, while Jiangsu Nhwa Pharmaceutical Co Ltd is based in Xuzhou, Jiangsu. MaYinglong Pharmaceutical Group Co Ltd has its headquarters in Wuhan, Hubei.
The number of employees at these companies varies significantly, with China National Accord Medicines Corporation Ltd having the largest workforce with 34,831 employees, followed by Kangmei Pharmaceutical Co Ltd with 4,233 employees. Jiangsu Nhwa Pharmaceutical Co Ltd has 5,923 employees, while China Resources Jiangzhong Pharmaceutical Group Co Ltd has 4,182 employees. MaYinglong Pharmaceutical Group Co Ltd has the smallest workforce with 2,654 employees.
Here's a comparison of the key parameters of these competitors:
Frequently Asked Questions
What foreign pharmaceutical companies are in China?
Several well-known western pharmaceutical companies, including Pfizer, GSK, Roche, and Novo Nordisk, have established operations and R&D centers in China. These companies have also set up joint venture manufactories with local partners
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