Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. (ST Suwu) has been found to have false records in its annual reports from 2020 to 2023, leading to a proposed fine of 10 million yuan and potential forced delisting due to major violations [1][4][7]. Group 1: Company Violations - ST Suwu has been identified for financial fraud over four consecutive years, with significant false reporting in its annual financial statements [3]. - The company inflated its operating income by 495 million yuan, 469 million yuan, 431 million yuan, and 377 million yuan for the years 2020 to 2023, which accounted for 26.46%, 26.39%, 21.26%, and 16.82% of the reported revenue respectively [4]. - The inflated total profit for the same years was 14.58 million yuan, 20.27 million yuan, 19.92 million yuan, and 21.22 million yuan, representing 2.89%, 51.65%, 26.42%, and 29.81% of the total profit [4]. Group 2: Related Financial Misconduct - The company failed to disclose non-operating fund occupation by related parties, which amounted to 127 million yuan, 1.393 billion yuan, 1.543 billion yuan, and 1.693 billion yuan from 2020 to 2023, constituting 6.88%, 74.20%, 84.60%, and 96.09% of the net assets reported [5]. - There was also a misrepresentation of the actual controller of the company, with false disclosures made from 2018 to 2023 regarding the control of the company [5]. Group 3: Regulatory Actions - The China Securities Regulatory Commission (CSRC) has mandated ST Suwu to rectify its reports, issued warnings, and imposed fines on the actual controller and other executives [6]. - The company is among several others facing similar risks of forced delisting due to major violations, with at least five other companies also potentially facing this outcome [2][8].