Core Viewpoint - *ST Suwu has received an administrative penalty notice from the China Securities Regulatory Commission (CSRC), indicating that the company may face major illegal delisting due to inflated revenue, costs, and profits in its annual reports from 2020 to 2023 [2][5][7]. Summary by Relevant Sections Administrative Penalty Notice - The notice states that *ST Suwu's subsidiaries engaged in non-commercial trade activities with related companies, leading to inflated financial figures [5][7]. - The company is at risk of being delisted under the Shanghai Stock Exchange's rules due to these violations [2][10]. Financial Impact - The inflated revenue figures from 2020 to 2023 were reported as follows: - 2020: 495 million yuan (26.46%) - 2021: 469 million yuan (26.39%) - 2022: 431 million yuan (21.26%) - 2023: 377 million yuan (16.82%) [7]. - The inflated costs were: - 2020: 481 million yuan (37.08%) - 2021: 448 million yuan (35.47%) - 2022: 411 million yuan (28.40%) - 2023: 355 million yuan (20.95%) [7]. - The inflated profit figures were: - 2020: 14.58 million yuan (2.89%) - 2021: 20.27 million yuan (51.65%) - 2022: 19.92 million yuan (26.42%) - 2023: 21.22 million yuan (29.81%) [7]. Company Response and Future Actions - *ST Suwu has issued its first risk warning regarding the potential for major illegal delisting [8]. - If the company receives a formal penalty decision confirming the violations, it will apply for a trading suspension and disclose relevant information [10]. - The Shanghai Stock Exchange will issue a notice regarding the potential termination of *ST Suwu's stock listing within five trading days of the suspension [10]. Recent Financial Performance - For the year 2024, *ST Suwu reported: - Revenue of 1.599 billion yuan, a decrease of 28.64% year-on-year - Net profit attributable to shareholders of 70.48 million yuan, compared to a loss of 71.95 million yuan in 2023 [10][11].

Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. (*ST Wuzhong) is facing administrative penalties from the China Securities Regulatory Commission (CSRC) due to violations related to information disclosure, including false reporting of actual controllers and inflated financial figures [1][2][6]. Summary by Sections Administrative Penalty Notification - The CSRC has issued an administrative penalty notice to *ST Wuzhong and its executives for suspected violations of information disclosure laws [1][2]. - The company received a notice of investigation on February 26, 2025, leading to the current administrative penalty proceedings [1]. Violations Identified - *ST Wuzhong failed to disclose the actual controller accurately, with annual reports from 2018 to 2023 falsely identifying Qian Qunying as the actual controller instead of Qian Qunshan [2][6]. - The company inflated revenue, costs, and profits from 2020 to 2023 through non-substantive trade transactions with related companies, resulting in inflated reported revenue of 495.2632 million yuan [2][7]. - There was a significant omission in disclosing non-operating fund occupation by related parties in annual reports from 2020 to 2023, with balances of 127.4069 million yuan, 139.26291 million yuan, and others not reported [3][7]. Penalties Proposed - The CSRC proposes to impose a fine of 10 million yuan on *ST Wuzhong, along with individual fines on executives: 15 million yuan on Qian Qunshan, 2 million yuan on Qian Qunying, 1.5 million yuan on Chen Yi, and 1 million yuan each on Sun Xi and Luo Xiao [7][8]. - Qian Qunshan is also subject to a 10-year ban from the securities market due to the severity of the violations [8]. Rights of the Involved Parties - The involved parties have the right to respond to the proposed penalties and request a hearing within five working days of receiving the notice [9]. Potential Impact on the Company - The existence of false records in annual reports may lead to mandatory delisting under the Shanghai Stock Exchange rules, posing a significant risk to the company's future [9].

Group 1 - The company has been issued a delisting risk warning due to the inability of the annual audit institution to express an opinion on the 2024 financial report, triggering the delisting risk warning as per the Shanghai Stock Exchange listing rules [1] - The company is also facing additional risk warnings due to non-operational occupation of company funds by related parties of the controlling shareholder, which violates specific provisions of the Shanghai Stock Exchange listing rules [1] - The company’s subsidiaries have been found to engage in non-substantive trade activities with related companies, resulting in inflated revenue, costs, and profits from 2020 to 2023, with revenue inflated by 26.46%, 26.39%, 21.26%, and 16.82% respectively [2] Group 2 - The inflated operating costs amounted to 480.68 million, 448.24 million, 410.82 million, and 355.44 million yuan, representing 37.08%, 35.47%, 28.40%, and 20.95% of the reported operating costs for the respective years [2] - The total profit inflated was 14.58 million yuan for the years in question, leading to potential mandatory delisting due to significant legal violations [2] - The company’s stock will be subject to an additional delisting risk warning starting from July 14, 2025, as per the regulations [2]

Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. faces the risk of being delisted due to major illegal activities, as the China Securities Regulatory Commission (CSRC) has initiated an investigation into the company for suspected violations of information disclosure laws [1][3]. Group 1: Investigation and Allegations - The company received a notice from the CSRC on February 26, 2025, indicating that it is under investigation for engaging in trade activities with related companies that lacked commercial substance, resulting in inflated revenue, costs, and profits [1][3]. - The inflated figures from 2020 to 2023 include a revenue increase of 26.46%, 26.39%, 21.26%, and 16.82% for each respective year, with inflated costs amounting to 480.68 million, 448.24 million, 410.82 million, and 355.44 million yuan, representing 37.08%, 35.47%, 28.40%, and 20.95% of the reported costs [1][3]. Group 2: Potential Consequences - If the formal administrative penalty confirms that the company has engaged in major illegal activities, its stock will be terminated from listing [2][3]. - The company will apply for a trading suspension and disclose relevant information promptly if it receives an administrative penalty decision indicating that it has triggered the conditions for major illegal delisting [2][3]. Group 3: Compliance and Future Actions - The company commits to fully cooperating with the CSRC and will exercise its rights to hearings or statements to protect the interests of the company and its investors [3]. - Investors are advised to pay attention to subsequent announcements regarding the investigation and potential risks associated with their investments [2][3].

Core Viewpoint - *ST Suwu has been found guilty of financial fraud for four consecutive years, leading to potential forced delisting due to significant violations of regulations [2][3]. Financial Misconduct - From 2020 to 2023, *ST Suwu's annual reports contained false records and significant omissions, inflating revenue by 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion respectively, which accounted for 26.46%, 26.39%, 21.26%, and 16.82% of the reported revenue for those years [5]. - The company also inflated total profits by 14.58 million, 20.27 million, 19.92 million, and 21.22 million, representing 2.89%, 51.65%, 26.42%, and 29.81% of the total profits for the respective years [5]. Control and Disclosure Issues - *ST Suwu failed to accurately disclose its actual controller, with the reports from 2018 to 2023 incorrectly identifying Qian Qunying as the actual controller instead of Qian Qunshan, who gained control after a shareholding change in February 2018 [5]. Related Party Transactions - The company provided funds to related parties through non-commercial trade business payments, which were not disclosed in the annual reports from 2020 to 2023. The non-operating fund occupation by related parties was 127 million, 1.393 billion, 1.543 billion, and 1.693 billion, representing 6.88%, 74.2%, 84.6%, and 96.09% of the net assets for those years [6]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) has decided to impose a fine of 10 million on *ST Suwu and has mandated corrective actions. The former chairman Qian Qunshan faces a total fine of 15 million, while other executives also received fines and warnings [6]. - Starting July 14, *ST Suwu's stock will be subject to a delisting risk warning due to the serious violations [6].

Core Viewpoint - *ST Suwu has received an administrative penalty notice from the China Securities Regulatory Commission (CSRC), indicating that the company has inflated its operating income, operating costs, and profits from 2020 to 2023, which may lead to a forced delisting due to significant violations [2][10]. Summary by Sections Administrative Penalty Notice - On July 13, *ST Suwu announced it received an administrative penalty notice from the CSRC, which identified false records in its annual reports from 2020 to 2023 [2][10]. - The notice states that *ST Suwu's subsidiaries engaged in non-commercial trade activities with related companies, resulting in inflated financial figures [7]. Financial Impact - The inflated operating income for the years 2020 to 2023 was reported as follows: 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion, representing 26.46%, 26.39%, 21.26%, and 16.82% of the reported operating income for those years, respectively [9]. - The inflated operating costs for the same years were 4.81 billion, 4.48 billion, 4.11 billion, and 3.55 billion, accounting for 37.08%, 35.47%, 28.40%, and 20.95% of the reported operating costs [9]. - The inflated total profits were 14.58 million, 20.27 million, 19.92 million, and 21.22 million, which constituted 2.89%, 51.65%, 26.42%, and 29.81% of the reported total profits for those years [10]. Regulatory Actions - The CSRC plans to impose a fine of 10 million yuan on *ST Suwu and a total of 20.5 million yuan in fines on its executives [10]. - The company has issued its first risk warning announcement regarding the potential for forced delisting due to significant violations [11][12]. Future Implications - If *ST Suwu receives a formal administrative penalty decision indicating significant violations, it will apply for a trading suspension and disclose relevant information promptly [14]. - The Shanghai Stock Exchange will issue a notice regarding the potential termination of *ST Suwu's listing within five trading days of the suspension [14]. Recent Financial Performance - In 2024, *ST Suwu reported an operating income of 1.599 billion, a year-on-year decrease of 28.64%, with a net profit attributable to shareholders of 70.48 million, compared to a net loss of 71.95 million in 2023 [15].

Core Viewpoint - *ST Suwu has been identified for continuous financial fraud over four years, leading to potential mandatory delisting due to significant violations of regulations [1][3]. Summary by Sections Financial Misconduct - From 2020 to 2023, *ST Suwu reported false financial statements, inflating revenue by 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion respectively, which accounted for 26.46%, 26.39%, 21.26%, and 16.82% of the reported revenue for those years [2]. - The company also inflated total profits by 145.83 million, 202.71 million, 199.24 million, and 212.19 million, representing 2.89%, 51.65%, 26.42%, and 29.81% of the total profits for the respective years [2]. - Non-operational fund occupation by related parties was not disclosed, with balances of 127 million, 1.393 billion, 1.543 billion, and 1.693 billion, which constituted 6.88%, 74.20%, 84.60%, and 96.09% of the net assets [2]. Control and Reporting Issues - The actual controller of *ST Suwu was misreported in annual reports from 2018 to 2023, with the company incorrectly identifying Qian Qunying as the actual controller instead of Qian Qunshan [3]. Regulatory Actions and Consequences - Starting July 14, *ST Suwu's stock will be subject to delisting risk warnings due to the serious violations identified [3]. - During the delisting risk warning period, the company must disclose progress every five trading days and provide special risk warnings regarding the potential for mandatory delisting [4]. - The company has a history of warnings about delisting risks, with the China Securities Regulatory Commission (CSRC) issuing a notice of investigation in February 2023 [4]. Future Implications - The CSRC maintains a strict stance on delisting, indicating that even if a company is delisted, it remains accountable for any illegal activities [5]. - Investors may pursue civil compensation for false statements after the final administrative penalty decision is made [5]. - The Supreme People's Court and CSRC have issued guidelines to enhance investor protection and combat fraudulent activities in the capital market [5].

Core Viewpoint - *ST Suwu has been identified for continuous financial fraud over four years, leading to a significant violation that may result in mandatory delisting from the stock market [2][4]. Financial Misconduct - The company has been found to have inflated revenue and profit figures from 2020 to 2023, with inflated revenues of 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion respectively, representing 26.46%, 26.39%, 21.26%, and 16.82% of the reported revenues for those years [2][3]. - The inflated profit totals for the same period were 145.83 million, 202.71 million, 199.24 million, and 212.19 million, accounting for 2.89%, 51.65%, 26.42%, and 29.81% of the reported profits [2][3]. Non-Disclosure of Related Party Transactions - The company failed to disclose significant non-operating fund occupations by related parties, with balances of 127 million, 1.393 billion, 1.543 billion, and 1.693 billion from 2020 to 2023, which constituted 6.88%, 74.20%, 84.60%, and 96.09% of the net assets reported [3]. Regulatory Actions and Consequences - Following the identification of these violations, *ST Suwu is subject to a fine of 10 million and faces mandatory delisting as per the stock exchange regulations [2][4]. - The company must disclose updates on its situation every five trading days during the delisting risk warning period, and its stock will be suspended pending the final delisting decision [4]. Investor Protection and Legal Accountability - The China Securities Regulatory Commission (CSRC) emphasizes that companies facing delisting will still be held accountable for their illegal activities, ensuring that investors can pursue civil compensation for false statements [5][6]. - The CSRC's approach includes strict enforcement of repayment obligations for fund occupations and a commitment to investor protection through legal frameworks [6].

Core Viewpoint - *ST Suwu has been found guilty of serious financial fraud over multiple years, leading to potential delisting due to major violations of stock listing rules [1][3]. Group 1: Financial Misconduct - From 2020 to 2023, *ST Suwu inflated its operating income by approximately 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion respectively, accounting for 26.46%, 26.39%, 21.26%, and 16.82% of the reported operating income for those years [2]. - The company also inflated its total profit by 14.58 million, 20.27 million, 19.92 million, and 21.22 million, representing 2.89%, 51.65%, 26.42%, and 29.81% of the total profit for the respective years [2]. - Non-operational fund occupation by related parties was not disclosed in annual reports from 2020 to 2023, with balances of 127 million, 1.39 billion, 1.54 billion, and 1.69 billion at year-end, constituting 6.88%, 74.20%, 84.60%, and 96.09% of the net assets [2]. Group 2: Regulatory Actions - Starting July 14, *ST Suwu's stock will be subject to delisting risk warnings due to the serious violations identified [3]. - The company is required to disclose progress on related matters every five trading days during the delisting risk warning period and must provide special risk warnings regarding potential mandatory delisting [3]. - The company has issued over 20 risk warning announcements since being investigated, indicating the ongoing nature of the delisting risk [4]. Group 3: Investor Protection and Accountability - The regulatory authorities have adopted a "zero tolerance" approach towards financial fraud, emphasizing that companies facing delisting will still be held accountable for their fraudulent actions [5]. - Even after delisting, *ST Suwu will remain liable for civil compensation related to its fraudulent activities, ensuring that investors can seek redress for damages incurred [5]. - The Supreme People's Court and the China Securities Regulatory Commission have issued guidelines to strengthen legal protections for investors against fraudulent activities [6].

江苏吴中医药发展股份有限公司(以下简称"公司") 因涉嫌信息披露违 法违规，被中国证券监督管理委员会（以下简称"中国证监会"）立案 调查。2025 年 7 月 13 日，公司收到中国证监会下发的《行政处罚事先 告知书》（处罚字〔2025〕58 号）。认定公司虚增营业收入、营业成本 和利润，2020 年至 2023 年年度报告存在虚假记载。 如根据正式的处罚决定书结论，公司触及重大违法强制退市情形，公司 股票将被终止上市。根据《上海证券交易所股票上市规则》第 9.5.7 条、 第 9.5.8 条，如公司后续收到行政处罚决定书，显示公司触及重大违法 类强制退市情形，公司将申请停牌，并及时披露有关内容。上海证券交 易所将在停牌之日起的 5 个交易日内，向公司发出拟终止股票上市的事 先告知书，后续将根据《上海证券交易所股票上市规则》的相关规定， 作出是否终止公司股票上市的决定。 公司将全力配合中国证监会的相关工作，并积极行使听证或进行陈述、 申辩等合法权利，维护公司和广大投资者权益，最终结果以中国证监会 出具的正式处罚决定为准。敬请广大投资者关注后续公告并注意投资风 险。 法》《中华人民共和国行政处罚法》等法律法规， ...