Jiangsu wuzhong(SH:600200) Mei Ri Jing Ji Xin Wen·2025-12-19 14:57Core Viewpoint - A tax fraud case involving Jiangsu Wuzhong and its subsidiary has reached a final verdict, coinciding with the company's impending delisting due to financial misconduct [2][6]. Group 1: Legal Proceedings - Jiangsu Wuzhong's wholly-owned subsidiary, Jiangsu Wuzhong Import and Export Co., received a final ruling from the Hunan Hengyang Intermediate People's Court, upholding the original judgment that found it guilty of tax fraud, imposing a fine of 8 million yuan [1]. - The former legal representative and chairman of Jiangsu Wuzhong Import and Export, Yang Feng, was sentenced to 3 years and 6 months in prison and fined 123,000 yuan for his role in the fraud [1][4]. - The fraudulent activities spanned from July 2011 to December 2018, resulting in approximately 242 million yuan in export tax refunds obtained through illegal means [4]. Group 2: Financial Impact and Company Operations - Jiangsu Wuzhong's stock is set to enter a delisting period, with the last trading day expected to be December 29, 2025, due to continuous financial fraud and misuse of funds [2][6]. - Despite the legal issues, Jiangsu Wuzhong stated that the judgment would not affect its normal business operations, and the company is currently functioning normally [1][2]. - The subsidiary's profits were significantly inflated due to the fraudulent activities, with a notable drop in profits from 14.67 million yuan in 2018 to just 180,600 yuan in 2019, a decrease of 98.77% [5]. Group 3: Investor Implications - Investors who purchased Jiangsu Wuzhong's stock between April 20, 2019, and February 26, 2025, may have the right to claim compensation for losses incurred after the company's delisting [6][7]. - The delisting process will not affect investors' rights to seek compensation, although it may complicate the recovery of funds due to the company's financial condition [7].