Haoyao Group, the first listed company in the Chinese pharmaceutical industry, has encountered trouble as its chairman, Lu Chuanyou, has been placed under judicial detention.
According to reports from Chinese media outlet “起點新聞” (Starting News), Haoyao Group announced on October 11th that the company had recently received a “Notice of Case Filing” and a “Notice of Detention” regarding its director and chairman Lu Chuanyou from the relevant supervisory committee.
Haoyao Group stated that its chairman, other directors, and senior management staff are all carrying out their duties as usual, with the board of directors operating normally and production and operations proceeding as usual.
Public records show that Haoyao Group is a large enterprise group integrating pharmaceutical manufacturing, trading, and research. It was listed on the Shanghai Stock Exchange in June 1993, becoming the first listed company in the Chinese pharmaceutical industry and the first listed company in Heilongjiang Province. The state-owned enterprise Haoyao Group Co., Ltd. holds 46.58% of the shares of the listed company Haoyao Group and is its controlling shareholder.
Starting from 2018, Haoyao Group invested in the American health brand “GNC” and became a major shareholder of GNC.
In the first half of this year, Haoyao Group achieved operating revenue of 8.296 billion yuan, an increase of 2.10% year-on-year; the net profit attributable to shareholders of the listed company was 410 million yuan, a 57.99% increase year-on-year; and the non-net profit attributable to shareholders of the listed company was 355 million yuan, a 45.39% increase year-on-year.
According to Haoyao Group’s 2025 annual report, Lu Chuanyou previously served as the Chief Engineer, Deputy Factory Director, Factory Director, and Party Secretary of the Pharmaceutical Factory 6 of Haoyao Group; Party Secretary, Chairman, and General Manager of Haoyao Group Sanjing Pharmaceutical Co., Ltd; Vice President and Senior Consultant of Haoyao Group. Lu Chuanyou currently serves as a member of the Party Committee, Director of the 10th Board of Directors, and Chairman of Haoyao Group. The total pre-tax compensation received from the company during the 2025 reporting period was RMB 2.968 million.
Lu Chuanyou was rehired after retirement. According to the announcement issued by Haoyao Group, on October 19, 2022, due to retirement reasons, Lu Chuanyou resigned from the position of Deputy General Manager of the company. On December 12, 2023, the board of directors decided to appoint Lu Chuanyou as Vice President of the company. On December 28, 2023, Lu Chuanyou was appointed as the company’s chairman.
“Detention” is a form of extrajudicial detention in the Chinese Communist Party system. The British media outlet “The Economist” revealed last year that Chinese entrepreneurs are mysteriously disappearing at an alarming rate, with almost one person being arrested every week.