BUSINESS

In Profile: How a China Pharma Giant’s Founder Went From Billionaire to Criminal

Published: Jun. 5, 2026 6:16 p.m. GMT+8

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Ma Xingtian. Photo: VCG

Seven years after drugmaker Kangmei Pharmaceutical Co. Ltd.’s accounting fraud scandal erupted, its imprisoned founder Ma Xingtian is back in the spotlight, with a new court ruling that highlights the lasting fallout from one of China’s biggest corporate collapses.

Last month, the Guangzhou Intermediate People’s Court ordered GF Securities Co. Ltd. to compensate investors for providing inadequate due diligence and fraudulent documents as an underwriter of exchangeable bonds issued by a Kangmei shareholder in 2017. GF Securities was the sponsor of Kangmei’s initial public offering in 2001.

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GF Securities ordered to compensate investors for inadequate due diligence as underwriter of Kangmei-linked bonds.
Kangmei founder Ma Xingtian sentenced to 12 years for manipulating securities, bribery, and false disclosures.
Kangmei overstated cash by 29.9 billion yuan; Ma bribed regulators and officials for listing and political status.

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Who’s Who

Kangmei Pharmaceutical Co. Ltd.: Kangmei Pharmaceutical Co. Ltd. was founded in 1997 by Ma Xingtian, went public in 2001, and became China's largest producer of TCM decoction pieces. In 2019, it admitted to massive accounting fraud, overstating cash by 29.9 billion yuan. The company underwent bankruptcy restructuring, and Ma was sentenced to 12 years in prison for securities manipulation and bribery.

GF Securities Co. Ltd.: GF Securities Co. Ltd. was ordered by a Guangzhou court to compensate investors for inadequate due diligence and fraudulent documents as an underwriter of Kangmei's exchangeable bonds in 2017. It also served as Kangmei's IPO sponsor in 2001.

Guangzhou Pharmaceutical Holdings Ltd.: Guangzhou Pharmaceutical Holdings Ltd. is a state-owned company. Its former chairman Li Chuyuan was investigated in late 2024. The firm disclosed that close relatives of Li accepted Kangmei shares from a businessman linked to Kangmei's convicted founder, Ma Xingtian, during a yearlong anti-corruption campaign.

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