Jiangsu wuzhong(SH:600200) Shang Hai Zheng Quan Bao·2025-10-16 20:58Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, which may lead to significant illegal delisting risks for the company's stock [2][4][6]. Group 1: Investigation and Regulatory Actions - The company received a notice of investigation from the CSRC on February 26, 2025, due to suspected violations of information disclosure laws [4]. - On July 13, 2025, the company was issued a preliminary administrative penalty notice by the CSRC, which identified inflated operating income, costs, and profits in annual reports from 2020 to 2023 [5]. - The company’s stock has been subject to significant illegal delisting risk warnings since July 14, 2025, following the CSRC's findings [2][5]. Group 2: Financial Irregularities - The company inflated its operating income by amounts ranging from 37.67 million to 49.53 million yuan from 2020 to 2023, representing 16.82% to 26.46% of the reported operating income for those years [5]. - Operating costs were also inflated by 35.54 million to 48.07 million yuan, accounting for 20.95% to 37.08% of the reported operating costs during the same period [5]. - The total profit was inflated by 1.46 million to 2.12 million yuan, which constituted 2.89% to 51.65% of the reported profit for the respective years [5]. Group 3: Additional Risks - The company faces multiple delisting risks, including financial delisting and risks related to the freezing of shares held by the controlling shareholder [3][8]. - As of the end of 2023, the controlling shareholder's related parties had non-operating fund occupation amounting to 169.26 million yuan, which remains unresolved [8]. - The company reported a net loss of 44.42 million yuan for the first half of 2025, a decline of 281.63% compared to the same period last year [9].