Jiangsu wuzhong(SH:600200) Sou Hu Cai Jing·2025-12-04 05:07Core Viewpoint - *ST Suwu has been forced to delist due to continuous financial fraud over the past four years, alongside a dispute over the agency rights of its key medical beauty product, AestheFill [2][6][12] Financial Misconduct - The company received a delisting decision from the Shanghai Stock Exchange due to "financial fraud" and other violations [2] - The China Securities Regulatory Commission (CSRC) issued an administrative penalty, confirming that the annual reports from 2020 to 2023 contained false records [4][7] - The fraudulent activities included concealing the actual change of control and inflating revenue, costs, and profits through non-commercial trade with related companies [6][7] Financial Impact - The inflated revenues for the years 2020 to 2023 were reported as follows: 4.95 billion, 4.69 billion, 4.31 billion, and 3.77 billion, representing 26%, 26.39%, 21.26%, and 16.82% of the reported revenues respectively [7] - The inflated costs for the same years were 4.81 billion, 4.48 billion, 4.11 billion, and 3.55 billion, accounting for 37.08%, 35.47%, 28.40%, and 20.95% of the reported costs respectively [7] - The inflated total profits were 14.58 million, 20.27 million, 19.92 million, and 21.22 million, which were 2.9%, 51.65%, 26%, and 29.81% of the reported total profits respectively [7] Related Party Transactions - The company failed to disclose non-operating fund occupation by related parties, with balances at the end of each year from 2020 to 2023 being 127 million, 1.393 billion, 1.543 billion, and 1.693 billion, which represented 6.88%, 74.20%, 84.60%, and 96.09% of the reported net assets respectively [8] Agency Rights Dispute - The company is embroiled in a dispute over the agency rights of AestheFill, a key product that significantly contributed to its revenue [10][11] - AestheFill's sales accounted for 35.55% of the company's revenue in Q1 2025, with a gross profit contribution of 92.44 million, representing 45.77% of total gross profit [10] - The dispute escalated when Regen sent a termination letter to the company, demanding the cancellation of its exclusive distribution rights for AestheFill in mainland China [11] Market Response - The company’s medical beauty segment saw a revenue increase of 4225.65% in 2024, with a gross margin of 82.26% [13]