On August 20, the National Medical Products Administration (NMPA) issued an announcement stating that Harbin Michelle Cosmetics Co., Ltd., He Shi Biotechnology (Chongqing) Co., Ltd., and Kosifu International Trade (Shenzhen) Co., Ltd. were found to have violated the “Cosmetics Supervision and Administration Regulations” and the “Cosmetics Production Quality Management Specifications” during flight inspections, with serious defects in their production quality management systems.

To ensure public safety in cosmetics use, the NMPA has instructed the drug supervision bureaus of Heilongjiang, Chongqing, and Guangdong provinces (cities) to investigate and enforce legal actions against the aforementioned companies for their suspected violations. Currently, the relevant provincial (municipal) drug supervision bureaus have initiated investigations into the aforementioned companies and ordered them to suspend production and operations while addressing the identified issues.

Harbin Mystere Cosmetics Co.,Ltd. : Multiple management failures

Company Address: No. 123 Pingfang Road, Pingfang Industrial Park, Harbin City, Heilongjiang Province

In terms of quality assurance and control, there were issues such as failure to effectively implement record management systems and inspection management systems;

In terms of facility and equipment management, there were issues such as failure to maintain appropriate pressure differentials between areas of different cleanliness levels and failure to effectively implement production equipment management systems;

In terms of material and product management, there were issues such as ineffective implementation of the material supplier selection system, failure to store materials in accordance with regulations, and failure to conduct regular monitoring of process water quality as required;

In terms of production process management, there were issues such as failure to implement the product release management system in accordance with regulations.

Heshi Biotechnology (Chongqing) Co., Ltd : Dereliction of Duty by Key Personnel and Technical Violations

Company Address: No. 106 Shuitianping Avenue, Xingyi Town, Fengdu County, Chongqing City, Building 15, Unit 1-1

The company has issues such as the head of the quality management department failing to effectively fulfill their duties in terms of organizational structure and personnel; in terms of production process management, there are issues such as failing to produce products in accordance with the technical requirements specified in the filed documents.

Cosf International Trade (Shenzhen) Co., Ltd : Lack of Comprehensive Management Across the Entire Supply Chain

Company Address: Unit G317, Building B2, Yintian Industrial Zone, Yantian Community, Xixiang Subdistrict, Bao'an District, Shenzhen City

In terms of organizational structure and personnel, there are issues such as the quality and safety manager failing to effectively fulfill their duties;

In terms of quality assurance and control, there are issues such as failing to implement the quality management system self-inspection system and sample retention management system as required;

In production process management, there are issues such as failure to implement the product release management system as required;

In contract manufacturing management, there are issues such as failure to supervise the production activities of contracted manufacturers as required;

In product sales management, there are issues such as failure to implement the product sales record system as required.

Flight inspections, as a surprise regulatory measure, reveal the true state of a company's daily management. This incident demonstrates that some companies still have weak internal governance and compliance awareness.

From an ESG perspective, all three companies have issues such as managerial negligence and ineffective implementation of systems, exposing deficiencies in internal control and supervision mechanisms.

These governance deficiencies directly lead to the failure of corporate social responsibility, with product safety risks being the most serious issue.

Heshi Biotechnology “failed to produce products in accordance with the technical requirements specified in the filed documentation,” meaning that the products actually used by consumers may differ from the filed products, posing uncertain safety risks.

The lack of product traceability is also a cause for concern. Kousifu International Trade failed to implement the product sales record system as required, meaning that in the event of a product quality issue, an effective recall would not be possible, directly jeopardizing consumer rights.

Michelle Company “failed to implement the product release management system as required,” potentially allowing non-conforming products to enter the market, directly endangering consumer health.

Additionally, “failure to monitor process water quality as required,” though not directly causing environmental incidents, suggests potential environmental compliance risks.

The cosmetics industry directly impacts public health and safety, necessitating transparency, accountability, and sustainability in ESG governance. As consumer concern for product safety grows, companies must strengthen quality and compliance management and proactively disclose quality and safety metrics to earn market trust.

Author：Qinger