Jiangsu wuzhong(SH:600200) Nan Fang Du Shi Bao·2025-07-15 07:32Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. (*ST Suwu) and its executives have been penalized by the China Securities Regulatory Commission (CSRC) for violations related to information disclosure, including false reporting of the actual controller, inflated performance, and non-operational fund occupation by related parties [1][5][6]. Summary by Sections Company Penalties - The CSRC has issued administrative penalties against *ST Suwu, including a warning and a fine of 10 million yuan for the company, and a 15 million yuan fine for actual controller Qian Qunshan, who is also banned from the securities market for 10 years [2][5]. - Other executives, including Qian Qunshan's sister Qian Qunying and financial director Sun Xi, received fines ranging from 150,000 to 2 million yuan [2][3]. Violations and Misconduct - The company failed to disclose the actual controller, inflated revenue and profit figures, and did not report the non-operational occupation of funds by related parties [6][8]. - From 2018 to 2023, *ST Suwu falsely claimed Qian Qunying as the actual controller while Qian Qunshan was in control, leading to a cumulative inflated revenue of over 1.7 billion yuan and inflated profits exceeding 70 million yuan [6][7]. Financial Impact - The inflated financials included significant discrepancies in reported revenues and costs, with inflated revenues of 4.95 billion yuan in 2020, 4.69 billion yuan in 2021, 4.31 billion yuan in 2022, and 3.77 billion yuan in 2023, representing 26% to 16.82% of reported revenues for those years [7]. - The company also reported non-operational fund occupations that reached 96.09% of its net assets by the end of 2023, with balances of 1.27 billion yuan in 2020, escalating to 16.93 billion yuan in 2023 [8]. Business Performance - *ST Suwu is facing significant financial challenges, with a projected loss of 40 to 60 million yuan for the first half of the year, attributed to large impairment provisions for trade receivables [9][10]. - Despite the overall downturn, the medical beauty segment has shown remarkable growth, with revenues of 330 million yuan in 2024, a year-on-year increase of 4225.65%, driven by the launch of a new product [10][11]. Market Reaction - Following the announcement of penalties, *ST Suwu's stock price fell by 4.78%, marking consecutive trading days of decline, and the company has warned of potential delisting due to serious violations [12].