October 24 -- Jilin Zixin Pharmaceutical Industrial (002118.SZ), a producer of ginseng and traditional Chinese medicines, admitted yesterday that it did not disclose several related-party transactions, reports China Business News, citing a company filing.

Zixin Pharma had fully acquired Jilin Caohuandan Pharmaceutical in 2008. Transactions between the two companies thus constitute related-party transactions.

In addition, related-party transactions with Tumen Huaxin Industry and Trade, Jilin Zhengde Pharmaceutical, and Tonghua Hongtao Ginseng Trading were not disclosed.

Zixin Pharma said the failure to disclose the transactions was due to its misunderstanding of the rules and was not done on purpose.

The company reiterated that the above transactions existed and were conducted at fair prices. Transactions with the aforementioned related-parties totaled 86.74 million yuan in 2010 and 81.66 million yuan year-to-date.

Zixin Pharma denied it had anything to do with Bozhou Qincao Pharmaceutical, which is currently being investigated by the China Securities Regulatory Commission.

Shares of Zixin Pharma resumed trading today, and the stock fell by its daily limit of 10 percent.