*ST苏吴启动重大违法强制退市

Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. (ST Wuzhong) has been forced to delist from the A-share market due to years of financial fraud, as confirmed by the China Securities Regulatory Commission (CSRC) [2][4][6] Financial Misconduct - ST Wuzhong failed to disclose the actual controller from 2018 to 2023, misrepresenting Qian Qunying as the actual controller instead of Qian Qunshan [4][6] - The company inflated revenue and profits significantly from 2020 to 2023, with a total inflated revenue of 1.771 billion yuan and inflated profits of 75.9975 million yuan over four years [5][6] - The company also failed to disclose non-operating fund occupation by related parties, with the amount occupied increasing from 127 million yuan in 2020 to 1.693 billion yuan in 2023, representing 96% of the disclosed net assets [5][6] Regulatory Actions - The CSRC imposed a maximum penalty on ST Wuzhong, including a fine of 10 million yuan and a 10-year market ban on actual controller Qian Qunshan [6] - The company’s stock will be suspended from trading starting November 26, 2025, pending a review by the Shanghai Stock Exchange regarding its delisting [6] Company Performance - ST Wuzhong reported revenues of 1.872 billion yuan in 2020, declining to 1.599 billion yuan in 2024, with net profits fluctuating from -506 million yuan to 70.48 million yuan during the same period [8] - In the first three quarters of 2025, the company experienced a 38.85% decline in revenue year-on-year, with a net loss of 87.47 million yuan, attributed to decreased income from pharmaceutical and medical beauty businesses [8] Medical Aesthetics Business - The company’s medical aesthetics segment, particularly the product AestheFill, was expected to turn around its financial performance, but faced challenges due to a dispute with a major competitor, Aimeike [9] - An arbitration case is ongoing regarding the exclusive distribution rights for AestheFill, which has hindered the company’s ability to sell the product [9]