Tibet Huaxi Pharmaceutical (Group) Co., Ltd. will have to auction its 10.3 million shares of Tibet Rhodiola Pharmaceutical Holding Co., Ltd. (SHSE: 600211) through Sichuan Unite Auction Co., Ltd. on February 26, 2009, because it did not repay debts on time.

Tibet Huaxi Pharmaceutical, Chengdu Yida Property Management Co., Ltd., and the Chengdu Branch of China CITIC Bank (SHSE: 601998; SEHK: 0998) were involved in the credit mortgage and guarantee case as early as 2007, when the local court finally judged that the pharmaceutical company should repay the principal and interests of CNY 25 million in amount immediately

But Tibet Huaxi Pharmaceutical did not obey this judgment, so the court decided to freeze its 10.3 million shares of Tibet Rhodiola Pharmaceutical from November 15, 2008 to November 14, 2010. Ultimately, these shares will be auctioned by Sichuan Unite Auction.

Previously, Tibet Huaxi Pharmaceutical held 31.48 million shares of the Shanghai-listed folk distinctive medicine producer, taking a 22.69% stake.