Jiangsu wuzhong(SH:600200) Zheng Quan Zhi Xing·2025-07-13 16:09Core 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].