Jiangsu wuzhong(SH:600200) Zheng Quan Zhi Xing·2025-07-20 08:20Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. faces the risk of being forcibly delisted due to major legal violations, as the China Securities Regulatory Commission (CSRC) has initiated an investigation into the company for suspected information disclosure violations [1][3]. Group 1: Investigation and Legal Proceedings - 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 from 2020 to 2023 [1][3]. - The inflated figures include a revenue increase of 26.46%, 26.39%, 21.26%, and 16.82% for the years 2020 to 2023, respectively, along with inflated costs amounting to 480.68 million, 448.24 million, 410.82 million, and 355.44 million yuan, which represented 37.08%, 35.47%, 28.40%, and 20.95% of the reported costs for the same periods [1][3]. Group 2: Potential Consequences - If the formal administrative penalty decision indicates that the company has committed major legal violations, its stock will be terminated from listing [2][3]. - The company will apply for a trading suspension upon receiving the administrative penalty decision and will disclose relevant information promptly [2][3]. Group 3: Compliance and Communication - The company commits to fully cooperating with the CSRC and will exercise its rights to defend itself during the investigation process [3]. - Investors are advised to pay attention to subsequent announcements regarding the investigation and potential risks associated with their investments [2][3].