Jiangsu wuzhong(SH:600200) Sou Hu Cai Jing·2025-12-16 10:44Core Viewpoint - Jiangsu Wuzhong, once a prominent player in the education apparel sector, is facing delisting after being mismanaged and financially manipulated by its major shareholders, leading to significant losses for its investors [2][16]. Company History and Performance - Jiangsu Wuzhong was established as a state-owned enterprise focused on textile and later diversified into real estate and chemical industries, but faced challenges in each sector, ultimately leading to its decline [2][8]. - The company transitioned to a medical aesthetics focus under the control of the Qian siblings, who acquired a 17.01% stake in 2018 for 707 million yuan [6][10]. Financial Manipulation and Fraud - The previous major shareholders engaged in tax fraud through a related export company, which led to significant financial gains at the expense of the company [9][10]. - Under the Qian siblings' management, the company allegedly inflated revenues by 1.7 billion yuan and profits by 76 million yuan over four years through fictitious trading activities [10][11]. - By 2024, the company had occupied 17 billion yuan of its net assets, indicating severe financial distress and misappropriation of funds [12]. Regulatory Actions and Consequences - Jiangsu Wuzhong faced a 10 million yuan fine from regulators, while the Qian siblings were fined a total of 12 million yuan, with one sibling receiving a 10-year market ban [16]. - The company is now subject to potential criminal liability and shareholder lawsuits due to its fraudulent activities and subsequent financial collapse [16].