China NMPA Inspection - Laiwu Yaocao Biotechnology Co., Ltd. - October 24, 2017

In May 2017, unannounced inspections were conducted on ten cosmetics manufacturing enterprises across the province, guided by relevant cosmetics hygiene supervision and manufacturing regulations. A total of 62 deficiencies were uncovered during these inspections.

Laiwu Yaocao Biotechnology Co., Ltd. was identified as a major violator, suspected of producing its "Banmu Huatian Elastic Protein Eye Mask" without the necessary permits. Further issues included missing wax-based unit production equipment and the use of expired raw materials. Regulatory authorities have initiated an investigation and prosecution against the company, mandating immediate rectification of all identified problems and subsequent follow-up inspections.

Eight other companies, including Shandong Hanfang Newbe Little Red Riding Hood Biotechnology Co., Ltd., demonstrated a basic adherence to requirements but had various operational and facility issues. These encompassed improper raw material storage, inadequate warehouse management, incomplete production operation procedures, malfunctioning equipment (like interlock devices and differential pressure gauges), insufficient cleaning practices, and a lack of specific personnel training. These companies are required to rectify their deficiencies within a specified period, undergo re-inspections, and submit rectification reports. Additionally, product samples were collected for testing, with further actions contingent on the results.

Yantai Gaodengdais Cosmetics Technology Co., Ltd. was found to have its production workshop shut down for renovation during the inspection.