Former Changsheng Bio Chairwoman Gao Junfang Sentenced to Life in Vaccine Scandal

From early July to September 20, 2026, the Economic Observer learned from multiple informed sources that the once-sensational vaccine case involving Changsheng Biotechnology Co., Ltd. (formerly stock code: 002680.SZ, now delisted; hereinafter "Changsheng Bio") has reached its final conclusion.

Verdict and Sentencing

Gao Junfang, former chairwoman of Changsheng Bio, was sentenced to life imprisonment on January 30, 2026, by the Changchun Intermediate People's Court (hereinafter "Changchun Intermediate Court") in a first-instance trial. She was found guilty of four crimes:

• Production and sale of counterfeit and substandard products
• Acceptance of bribes by a non-state functionary
• Misappropriation of funds
• Unit bribery

The court ordered the confiscation of all her personal property and deprivation of political rights for life.

Zhang Youkui, Gao Junfang's husband and former director and deputy general manager of Changsheng Bio, was sentenced to six years in prison for misappropriation of funds.

Additionally, 12 other individuals, including:

• Zhang Jing, former director and deputy general manager of Changsheng Bio
• Liu Jingye, deputy general manager of Changchun Changsheng Biotechnology Co., Ltd. (hereinafter "Changchun Changsheng"), a wholly-owned subsidiary of Changsheng Bio

were convicted of production and sale of counterfeit and substandard products, receiving prison sentences ranging from 7 to 15 years.

Four other employees, including former director Zhao Zhiwei, were convicted of aiding in the destruction of evidence and sentenced to between 2 years and 9 months and 2 years and 10 months in prison.

Key Findings from the Court

The Changchun Intermediate Court confirmed in its first-instance judgment that the rabies vaccines produced by Changchun Changsheng, "upon sampling inspection, met the requirements for antigen content and potency." The court found no evidence of "substantive quality problems" with the rabies vaccines in question.

The court also determined that between 2006 and 2014, Changchun Changsheng had bribed Wang Lifeng, who held positions including Director of the Drug Market Supervision Department of the former State Food and Drug Administration and Director of the Drug and Cosmetics Registration Department of the former China Food and Drug Administration, a total of 20.9 million yuan. This was done to secure assistance in expediting drug registration and avoiding administrative penalties.

Appeal Outcome

Following the first-instance verdict, Gao Junfang and others appealed to the Jilin Provincial Higher People's Court. The higher court has recently issued its final ruling, upholding the original judgment.

Background: Gao Junfang and the Rise of Changsheng Bio

Early Career and Family Background

According to public company filings, Gao Junfang, born in October 1954, began her career as a staff member and later finance director at the Changchun Institute of Biological Products. Her husband, Zhang Youkui, also worked at the institute as deputy director of the personnel department.

The Changchun Institute of Biological Products, now known as Changchun Institute of Biological Products Co., Ltd., was one of the "Six Major Biological Products Institutes" of the People's Republic of China, primarily engaged in the R&D and sale of vaccines and diagnostic reagents.

Founding and Growth of Changsheng

In 1992, the Changchun Institute of Biological Products invested 15 million yuan (including 6 million yuan in cash and 9 million yuan in technology and production know-how) to establish Changchun Changsheng Industrial Co., Ltd. (hereinafter "Changsheng Industrial"), holding a 50% stake. The remaining shares were held by the Changchun Institute of High-Tech Biological Applications (21%), the Changchun Institute of Biological Products Biotechnology Service Center Sales Department (1%), and internal employees of the institute (28%).

Gao Junfang served successively as deputy general manager and general manager of Changsheng Industrial.

After multiple rounds of internal shareholding adjustments, capital increases, and equity transfers, the company was renamed Changchun Changsheng Company in April 2002. By August 2010, Gao Junfang held 30% and her son Zhang Minghao held 25% of the shares, making them the largest and second-largest shareholders respectively. Since 2001, Gao Junfang had served as the company's legal representative, chairwoman, and general manager.

Listing on the Stock Market

In 2015, Changchun Changsheng achieved a backdoor listing on the A-share market through Lianyungang Huanghai Machinery Co., Ltd. (hereinafter "Huanghai Machinery"). After the transaction, Gao Junfang became the largest shareholder of the listed company, with Gao Junfang, Zhang Youkui, and Zhang Minghao collectively holding approximately 33.70% of the equity.

In February 2016, Gao Junfang was elected chairwoman of the listed company. In March of the same year, Huanghai Machinery was renamed Changsheng Bio.

Following the backdoor listing, Changchun Changsheng became a wholly-owned subsidiary of Changsheng Bio. Its main products included vaccines for chickenpox, rabies, hepatitis A, influenza, diphtheria-tetanus-pertussis (DTP), and meningitis.

Financial Performance

• 2015: Changchun Changsheng received batch release approval for 2.5391 million doses of rabies vaccine. The company reported sales revenue of 796 million yuan and net profit of 293 million yuan.
• 2017: Changsheng Bio reported operating revenue of 1.553 billion yuan, net profit of 566 million yuan, and net cash flow of 486 million yuan. Total assets stood at 4.51 billion yuan and net assets at 3.857 billion yuan, with 1,041 employees.
• Market Capitalization: On May 11, 2018, Changsheng Bio's market capitalization reached a historic high of 29.2 billion yuan. At that time, Gao Junfang, Zhang Youkui, and Zhang Minghao collectively held 36.66% of the shares, corresponding to a market value of approximately 10.7 billion yuan.

The Unfolding Scandal

July 2018: The Crisis Begins

From July 6 to July 8, 2018, the National Medical Products Administration (NMPA) conducted an unannounced "flight inspection" of Changchun Changsheng.

On July 15, 2018, the NMPA issued a notice stating that the inspection had revealed "record falsification" and other serious violations of the Good Manufacturing Practice (GMP) for pharmaceutical products in the company's rabies vaccine production. The NMPA ordered the Jilin Provincial Food and Drug Administration to revoke Changchun Changsheng's GMP certificate and halt rabies vaccine production.

On July 16, 2018, Changsheng Bio issued a public announcement stating that all affected batches had not been released or sold and had been effectively controlled. The company also initiated a recall of all rabies vaccine batches within their shelf life.

On July 19, 2018, Changsheng Bio announced receipt of an administrative penalty from the Jilin Provincial Food and Drug Administration. This penalty stemmed from a 2016 national drug inspection that found the company's DTP vaccine failed potency tests. The penalties included:

• Confiscation of 186 doses of DTP vaccine in inventory
• Confiscation of illegal income of 858,800 yuan
• A fine of 2.584 million yuan (three times the value of the illegally produced drugs)

From July 16 to July 20, 2018, Changsheng Bio's stock price hit the daily limit down for five consecutive trading days.

Arrests and Criminal Charges

On July 24, 2018, the Changchun New District Public Security Bureau detained Gao Junfang, Zhang Youkui, and 10 others on suspicion of producing and selling inferior drugs. On the same day, Zhao Zhiwei and three other employees were detained on suspicion of aiding in the destruction of evidence. Two days later, on July 26, 2018, two additional employees were detained on suspicion of producing and selling inferior drugs.

Prosecution's Charges

On August 10, 2018, the case was transferred to the Changchun High-tech Industrial Development Zone People's Procuratorate for review. It was subsequently forwarded to the Changchun Municipal People's Procuratorate on August 22, 2018.

The case underwent multiple procedures, including extended review periods, supplementary investigations, and amended charges.

The Changchun Municipal Procuratorate charged Gao Junfang and 12 others with producing and selling inferior drugs. Gao Junfang was additionally charged with:

1. Embezzlement
2. Misappropriation of funds
3. Acceptance of bribes by a non-state functionary
4. Unit bribery

Her husband, Zhang Youkui, was charged with embezzlement. Zhao Zhiwei and three others were charged with aiding in the destruction of evidence. Changchun Changsheng Company was also named as a defendant unit, charged with producing and selling inferior drugs and unit bribery.

Details of the Charges

Production and Sale of Inferior Drugs: The prosecution alleged that between January 2014 and July 2018, Changchun Changsheng produced 8,260 batches of rabies vaccine, totaling over 64 million doses, most of which were sold and used. The company was accused of using expired raw materials, mixing multiple batches, and fabricating production, quality testing, and batch release records. The prosecution claimed this resulted in "multiple deaths and injuries, with particularly serious consequences."

Aiding in the Destruction of Evidence: The prosecution alleged that in July 2018, following the NMPA flight inspection, Zhao Zhiwei and others, acting on Gao Junfang's instructions, replaced computers and hard drives containing production and testing data. On July 12, 2018, two network maintenance staff allegedly destroyed the replaced hard drives with hammers by the roadside.

Misappropriation of Funds and Embezzlement: The prosecution alleged that from 2006 to 2010, Gao Junfang and Zhang Youkui conspired to divert sales payments from regional distributors into off-book accounts managed by Zhang Youkui. In May 2006, Gao Junfang allegedly misappropriated 11 million yuan from Changchun Changsheng to personally purchase company shares. In November 2006, she and Zhang Youkui allegedly used 6.92 million yuan from the off-book account, combined with Gao's personal funds of 4.08 million yuan, to repay the misappropriated amount.

Acceptance of Bribes by a Non-State Functionary: The prosecution alleged that between 2001 and 2002, Gao Junfang used her position to provide assistance to two individuals (identified as "Han Moumou and another person") in production and operations. Between November 2003 and August 2004, she allegedly received 21.5 million yuan from them in 12 installments. In March 2005, she allegedly accepted an additional 13.81118 million yuan by purchasing shares at a price significantly below market value.

Informed sources told the Economic Observer that the two individuals referred to in the charges are Han Gangjun and Du Weimin, both of whom provided testimony as witnesses in Gao Junfang's case. Han Gangjun was formerly an indirect shareholder of Changsheng Bio and the actual controller of Jiangsu Yansheng Biotechnology Co., Ltd. Du Weimin is the actual controller of Shenzhen Kangtai Biological Products Co., Ltd. (300601.SZ).

Unit Bribery: The prosecution alleged that between 2006 and 2014, Changchun Changsheng, through Gao Junfang, bribed Wang Lifeng a total of 20.9 million yuan to obtain improper benefits.

Trial and Final Verdict

The first-instance trial for Gao Junfang and others was held publicly at the Changchun Intermediate Court from December 16 to 19, 2025 — seven years and five months after Gao Junfang's initial detention.

Prior to the trial, 13 individuals, including Zhao Zhiwei and Zhang Youkui, had been released on bail pending trial, while Gao Junfang, Zhang Jing, and three others remained in custody.

Defense Arguments

• Zhao Zhiwei and three others accepted the charges and facts regarding aiding in the destruction of evidence.
• Gao Junfang accepted the charges of misappropriation of funds and unit bribery.
• Regarding the embezzlement charge, Gao Junfang and Zhang Youkui's lawyers argued that the 6.92 million yuan had been returned to the company and therefore did not constitute embezzlement.
• Regarding the bribery charge, Gao Junfang's lawyers argued that her purchase of shares was a normal equity transfer and that she lacked criminal intent.

Court's Findings on the Drug Charge

The Changchun Intermediate Court found that the evidence "could not confirm that the rabies vaccines in question caused serious harm to human health." The vaccines met national standards for antigen content and potency upon sampling inspection. However, the production process violated GMP standards. While the defendants' actions "did not meet the conditions for the crime of producing and selling inferior drugs," the court applied Article 149, Paragraph 1 of the Criminal Code, which states that if the production or sale of inferior drugs does not constitute that specific crime but the sales amount exceeds 50,000 yuan, the defendants shall be convicted of producing and selling counterfeit and substandard products.

Final Sentences

On January 30, 2026, the Changchun Intermediate Court issued its first-instance verdict:

Gao Junfang:

• Production and sale of counterfeit and substandard products: Life imprisonment, deprivation of political rights for life, and confiscation of all personal property
• Acceptance of bribes by a non-state functionary: 13 years, confiscation of 4 million yuan in personal property
• Misappropriation of funds: 6 years and 9 months
• Unit bribery: 4 years
• Combined sentence: Life imprisonment, deprivation of political rights for life, and confiscation of all personal property
• (The embezzlement charge was not upheld by the court)

Zhang Youkui:

• Misappropriation of funds: 6 years
• (The embezzlement charge was not upheld by the court)

Zhang Jing (former director and deputy general manager): 15 years, fine of 5 million yuan

Liu Jingye (deputy general manager of Changchun Changsheng): 15 years, fine of 2 million yuan

10 other individuals: Prison terms ranging from 7 years to 9 years and 6 months

Zhao Zhiwei and three others (aiding in destruction of evidence):

• Zhao Zhiwei: 2 years and 10 months
• Three others: 2 years and 9 months each

Corporate Status

Changchun Changsheng Company, which had been named as a defendant unit, was dissolved on June 3, 2024, prior to the first-instance verdict.

Changsheng Bio was delisted from the Shenzhen Stock Exchange in 2019 for "major violations warranting mandatory delisting." The company's stock was suspended from trading on March 15, 2019, and terminated on October 8, 2019.

Final Appeal

Following the first-instance verdict, Gao Junfang and others appealed. According to informed sources who spoke with the Economic Observer, the Jilin Provincial Higher People's Court upheld the original judgment in a second-instance ruling in late June 2026.

In September 2026, the Economic Observer sought comment from Gao Junfang's family regarding whether they would file for a retrial. The family declined to provide information.

(Source: Economic Observer)