Jiangsu wuzhong(SH:600200) 21世纪经济报道·2025-12-02 07:50Core Viewpoint - The article discusses the forced delisting of *ST Suwu (Jiangsu Wuzhong) from the A-share market due to serious financial fraud, highlighting the company's significant stock price decline and the implications for the medical beauty industry [1][3]. Summary by Sections Company Delisting - *ST Suwu has been mandated to delist from the Shanghai Stock Exchange, with the last trading date expected to be December 29, 2025, following a decision by the exchange due to major legal violations [3]. - The company’s stock price plummeted from over 9 yuan at the beginning of the year to below 1 yuan, marking a decline of over 90% [1][3]. Financial Misconduct - The China Securities Regulatory Commission (CSRC) identified that *ST Suwu's annual reports from 2020 to 2023 contained false information, leading to the delisting decision [3]. - The company was found to have inflated revenue and profits through non-commercial transactions with related parties, resulting in significant discrepancies in reported financials [7]. - Specific figures include inflated revenues of 4.95 billion yuan, 4.69 billion yuan, 4.31 billion yuan, and 3.77 billion yuan for the years 2020 to 2023, respectively, along with inflated profits totaling 145.83 million yuan over the same period [7]. Corporate Governance Issues - The company concealed changes in its actual controlling shareholder, which was a significant violation impacting market transparency [6]. - The actual controller changed in February 2018, but the company continued to report the previous controller in its annual reports until 2023 [6]. Regulatory Actions - The CSRC imposed a fine of 10 million yuan on *ST Suwu and additional penalties on its actual controllers, including a 10-year ban from the securities market for the main controller [8]. - The exchange publicly reprimanded the company and its responsible individuals, emphasizing the importance of compliance and truthful financial reporting in the capital market [5][8]. Business Challenges - Prior to the delisting, *ST Suwu faced multiple operational challenges, including a significant drop in stock price and ongoing disputes regarding exclusive sales rights for a key product, AestheFill [10][11]. - The company reported a 63.93% decline in revenue in the third quarter of 2025, reflecting the adverse impact of these challenges on its financial performance [12]. Industry Implications - The case of *ST Suwu serves as a warning to the medical beauty industry regarding the risks associated with financial misconduct and the importance of maintaining transparent corporate governance [5][12].