Jiangsu wuzhong(SH:600200) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-10-24 21:05Core Viewpoint - The company, 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 penalties and potential delisting of its shares [2][4][5]. Group 1: Investigation and Regulatory Actions - The company received a notice from the CSRC on February 26, 2025, regarding the initiation of an investigation due to suspected information disclosure violations [4]. - On July 13, 2025, the company was informed of a preliminary administrative penalty notice, which identified inflated revenue, costs, and profits in its financial reports from 2020 to 2023 [5][6]. - The inflated figures included a total of 495.26 million yuan in revenue, 480.68 million yuan in costs, and 14.58 million yuan in profits for 2020, with similar patterns observed in subsequent years [5]. Group 2: Financial and Operational Risks - The company faces multiple risks, including the potential for major illegal delisting, financial delisting, and other operational risks due to unresolved issues such as significant fund occupation by controlling shareholders and ongoing losses [3][7]. - As of the end of 2023, the controlling shareholders' non-operational fund occupation amounted to 1.69 billion yuan, which remains unresolved [7]. - 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 [7]. Group 3: Future Implications - If the formal penalty decision confirms the major illegal delisting situation, the company's shares will be terminated from listing [6][9]. - The company will apply for a trading suspension and disclose relevant information if it receives a formal penalty decision indicating a major illegal delisting situation [9].