Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. (*ST Wuzhong*) has been forced to delist from the A-share market due to years of financial fraud, as confirmed by the China Securities Regulatory Commission (CSRC) [2][4][6] Financial Misconduct - *ST Wuzhong* failed to disclose the actual controller from 2018 to 2023, misrepresenting Qian Qunying as the actual controller instead of Qian Qunshan [4][6] - The company inflated revenue and profits significantly from 2020 to 2023, with a total inflated revenue of 1.771 billion yuan and inflated profits of 75.9975 million yuan over four years [5][6] - The company also failed to disclose non-operating fund occupation by related parties, with the amount occupied increasing from 127 million yuan in 2020 to 1.693 billion yuan in 2023, representing 96% of the disclosed net assets [5][6] Regulatory Actions - The CSRC imposed a maximum penalty on *ST Wuzhong*, including a fine of 10 million yuan and a 10-year market ban on actual controller Qian Qunshan [6] - The company’s stock will be suspended from trading starting November 26, 2025, pending a review by the Shanghai Stock Exchange regarding its delisting [6] Company Performance - *ST Wuzhong* reported revenues of 1.872 billion yuan in 2020, declining to 1.599 billion yuan in 2024, with net profits fluctuating from -506 million yuan to 70.48 million yuan during the same period [8] - In the first three quarters of 2025, the company experienced a 38.85% decline in revenue year-on-year, with a net loss of 87.47 million yuan, attributed to decreased income from pharmaceutical and medical beauty businesses [8] Medical Aesthetics Business - The company’s medical aesthetics segment, particularly the product AestheFill, was expected to turn around its financial performance, but faced challenges due to a dispute with a major competitor, Aimeike [9] - An arbitration case is ongoing regarding the exclusive distribution rights for AestheFill, which has hindered the company’s ability to sell the product [9]

Core Viewpoint - *ST Suwu has been penalized for failing to disclose its actual controller and for inflating revenue, operating costs, and profits, leading to a significant regulatory action by the China Securities Regulatory Commission (CSRC) [2][10][12] Summary by Relevant Sections Regulatory Actions - *ST Suwu received a total of six penalties, including a fine of 10 million yuan for the company and 15 million yuan for its actual controller, Qian Qunshan, who also faces a 10-year market ban [2][10][12] - Other involved personnel, including Qian Qunying, Chen Yi, Sun Xi, and Luo Xiao, were fined varying amounts for their roles in the violations [2][10] Violations Identified - The company failed to disclose its actual controller accurately from 2018 to 2023, misrepresenting Qian Qunying as the actual controller in its annual reports [4][7] - *ST Suwu inflated its revenue and profits over four years, with inflated revenue totaling 1.771 billion yuan and inflated profits of 76 million yuan [4][5] Financial Misrepresentation - The inflated operating revenue for the years 2020 to 2023 was reported as follows: 495.26 million yuan (26.46%), 468.51 million yuan (26.39%), 430.75 million yuan (21.26%), and 376.66 million yuan (16.82%) of the reported revenue [5] - Operating costs were similarly inflated, with figures of 480.68 million yuan (37.08%), 448.24 million yuan (35.47%), 410.82 million yuan (28.40%), and 355.44 million yuan (20.95%) [5] Related Party Transactions - The company failed to disclose significant non-operating fund occupations by related parties, with balances at year-end from 2020 to 2023 being 127.41 million yuan, 1.392 billion yuan, 1.543 billion yuan, and 1.693 billion yuan, representing 6.88%, 74.20%, 84.60%, and 96.09% of the net assets respectively [6] Enforcement Trends - The case reflects a shift in regulatory enforcement towards a "full chain, full subject" approach, where all responsible parties, including key individuals and subsidiaries, are held accountable [10][11] - The increasing frequency of "one case, multiple penalties" indicates a trend towards stricter enforcement of securities laws [10][11]

Core Viewpoint - *ST Dongtong is facing delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violates the exchange's regulations [2] Summary by Relevant Sections Company Announcement - On November 26, *ST Dongtong announced it received a "Notice of Prior Decision" from the Shenzhen Stock Exchange, indicating the intention to terminate its stock listing [2] - The company will enter a delisting preparation period after the termination decision, during which it must arrange for its stock to be transferred to the National Equities Exchange and Quotations (NEEQ) for trading within 45 trading days post delisting [2] Financial Misconduct - The Shenzhen Stock Exchange's decision is based on the company's continuous financial fraud over four years, from 2019 to 2022, which includes the use of false financial data in a non-public offering in 2022, constituting fraudulent issuance [2] - As a result of these violations, *ST Dongtong has been fined 229 million yuan [2]

Core Points - *ST Suwu and *ST Dongtong received administrative penalties from the China Securities Regulatory Commission (CSRC) for financial fraud, triggering mandatory delisting due to serious violations [1][2] - Both companies' stocks were suspended from trading starting November 26, following the announcements [1] - The number of companies facing administrative penalties for financial fraud has reached a record high of 13 this year, indicating increasing regulatory scrutiny [1] Company Specifics - *ST Suwu was found to have failed to disclose the actual controlling shareholder and had false records in annual reports from 2018 to 2023, including inflated revenue, costs, and profits [1] - The company was fined 10 million yuan and other individuals involved faced varying penalties [2] - *ST Dongtong inflated its revenue and profits significantly from 2019 to 2022, with inflated revenues ranging from 6.14 million yuan to 16.05 million yuan, and profits inflated from 5.22 million yuan to 12.37 million yuan, representing substantial percentages of reported figures [2] Regulatory Actions - The CSRC ordered both companies to rectify their issues and issued warnings, with *ST Dongtong facing a fine of 229 million yuan [2] - The violations committed by these companies have led to the potential termination of their stock listings due to serious infractions [2]

Core Viewpoint - The A-share market is demonstrating a "zero tolerance" attitude towards major illegal delisting behaviors, as evidenced by the recent forced delisting of *ST Dongtong and *ST Suwu due to severe violations of regulations [1][2] Summary by Sections Major Violations and Delisting - *ST Dongtong and *ST Suwu have been forced to delist due to serious violations, marking a significant shift in regulatory enforcement [1][6] - Since 2025, the number of companies facing major illegal delisting has reached 13, a historical high [1][6] Specific Violations - *ST Dongtong engaged in financial fraud through its subsidiary for four consecutive years and used false data in a 2022 private placement, constituting fraudulent issuance [2][3] - The fraudulent profits reported by *ST Dongtong were substantial, with inflated profits of 52.23 million in 2019, 58.77 million in 2020, 79.48 million in 2021, and 124 million in 2022, indicating a reliance on fabricated financials [2][3] - *ST Suwu concealed its actual controlling party and inflated revenues, with related party non-operating fund occupation reaching 1.693 billion, accounting for 96.09% of its net assets by the end of 2023 [4][5] Regulatory Changes and Enforcement - The new delisting regulations specify that companies with continuous fraud for three years or more will be decisively delisted, lowering the thresholds for identifying fraudulent activities [6][7] - The regulatory framework now includes a three-tiered system for recognizing financial fraud, with specific monetary thresholds and proportions that trigger delisting [7] - The regulatory approach has shifted to a comprehensive punishment system, integrating administrative, civil, and criminal penalties for financial fraud [7][8] Investor Protection and Technological Integration - The regulatory body is enhancing investor protection mechanisms, urging companies at risk of delisting to compensate affected investors [9] - Technological advancements such as AI and big data are being utilized to improve regulatory oversight, creating a "penetrating" monitoring system to detect hidden illegal activities [9][10] Market Implications - The recent actions against *ST Dongtong and *ST Suwu indicate a strengthening of the A-share market's survival of the fittest mechanism [10] - The ongoing high-pressure regulatory environment is expected to reduce the number of companies engaging in systematic financial fraud, leading to a cleaner capital market ecosystem [11]

Core Viewpoint - The A-share market has seen a significant increase in companies being forced to delist due to financial fraud, with two companies, ST Suwu and ST Dongtong, being delisted on November 26, 2025, marking a historical high in such cases since 2025 [1][19][35] Summary by Relevant Sections Financial Fraud Cases - ST Dongtong engaged in systematic financial fraud from 2019 to 2022, inflating profits by a total of 52.23 million yuan in 2019, 58.77 million yuan in 2020, 79.48 million yuan in 2021, and 124 million yuan in 2022, with the latter amount representing 219.43% of the reported profit for that year [7][19] - ST Suwu inflated its operating income by over 1.7 billion yuan from 2020 to 2023, with non-operating fund occupation reaching 1.693 billion yuan, accounting for 96.09% of the company's net assets [14][17] Regulatory Actions - The Beijing Securities Regulatory Bureau imposed a fine of 229 million yuan on ST Dongtong and ordered corrective actions, while the actual controller, Huang Yongjun, was fined 26.5 million yuan and banned from the securities market for 10 years [13][19] - ST Suwu faced a fine of 10 million yuan, with its actual controller, Qian Qunshan, fined 15 million yuan and also banned from the securities market for 10 years [17][19] Changes in Regulatory Environment - The regulatory framework has been strengthened, with new delisting standards introduced that lower the thresholds for identifying financial fraud, allowing more companies to be included in the delisting scope [19][21] - The "three penalties" system (administrative, civil, and criminal) is being strictly enforced, with the potential for criminal charges and civil compensation for involved parties [21][23] Investor Protection Measures - The China Securities Regulatory Commission (CSRC) is enhancing investor protection measures, encouraging companies at risk of delisting to take proactive steps to compensate affected investors [23][24] - Legal actions for investor compensation have been initiated for ST Dongtong and ST Suwu, with specific timeframes established for eligible claims [23][24] Market Implications - The year 2025 has seen the highest number of companies delisted due to financial fraud, indicating a tightening of market regulations and a shift towards a more rigorous enforcement of compliance [35] - The ongoing crackdown on financial fraud is expected to purify the market environment, with a notable reduction in the number of companies engaging in systematic financial misconduct [35][37]

Core Viewpoint - *ST Dongtong (300379.SZ) is facing potential delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violate the listing rules of the Growth Enterprise Market [2][3]. Financial Misconduct - The company inflated revenues by CNY 61.45 million, CNY 84.85 million, CNY 125.51 million, and CNY 160.53 million from 2019 to 2022, respectively [3]. - Profits were also inflated by CNY 52.23 million, CNY 58.77 million, CNY 79.48 million, and CNY 123.69 million during the same period, with the 2022 inflated profit amounting to 219.43% of the reported total profit for that year [3]. - Cumulatively, *ST Dongtong inflated revenues by CNY 432 million and profits by CNY 314 million from 2019 to 2022 [3]. Financing and Capital Structure - Since its listing, *ST Dongtong has raised nearly CNY 3.6 billion through direct financing, with approximately CNY 2.2 billion raised in a private placement in June 2023 [3][4]. - The company has a total financing structure of CNY 354.70 million, with direct financing accounting for 101.27% of the total [4]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) has proposed a fine of CNY 229 million against the company and a total of CNY 44 million against seven responsible individuals, with a 10-year market ban for the actual controller [5]. - The company has the right to request a hearing or submit written statements regarding the delisting decision, with a deadline for such actions [2]. Company Background - *ST Dongtong, listed in 2014, is recognized as a pioneer in middleware solutions in China, providing security and digital solutions [7].

Core Viewpoint - *ST Dongtong (300379.SZ) is facing potential delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violate the listing rules of the Growth Enterprise Market [1][2]. Summary by Sections Financial Misconduct - The company has been found to have inflated revenues by a total of 432 million yuan and profits by 314 million yuan from 2019 to 2022 [3]. - Specific inflated figures include 61.45 million yuan in 2019, 84.85 million yuan in 2020, 125.51 million yuan in 2021, and 160.53 million yuan in 2022 for revenue, and 52.23 million yuan, 58.77 million yuan, 79.48 million yuan, and 123.69 million yuan for profit respectively [2][3]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) has proposed a fine of 229 million yuan against the company and 44 million yuan against seven responsible individuals, with a 10-year market ban for the actual controller [6]. - The company has the right to request a hearing or submit written statements, failing which the exchange will proceed with the delisting process [2]. Company Background - *ST Dongtong was listed on the Shenzhen Stock Exchange in 2014 and is recognized as a pioneer in middleware solutions in China, providing various digital products and services [7]. - The company has raised nearly 3.6 billion yuan through direct financing since its listing, with a significant portion raised through a private placement in June 2023 [3][5].

Core Viewpoint - *ST Dongtong (300379.SZ) is facing potential delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violate the listing rules of the ChiNext board [1][2]. Summary by Sections Company Financial Misconduct - The company has been found to have falsely reported revenues and profits over the years 2019 to 2022, with inflated revenues of CNY 614.51 million, CNY 848.51 million, CNY 1.255 billion, and CNY 1.605 billion respectively [3]. - The inflated profits for the same years were CNY 522.28 million, CNY 587.74 million, CNY 794.82 million, and CNY 1.2369 billion, with the 2022 inflated profit accounting for 219.43% of the reported total profit for that year [3][4]. - Cumulatively, the company inflated its revenues by CNY 432 million and profits by CNY 314 million from 2019 to 2022 [4]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) has issued a notice indicating a proposed fine of CNY 229 million for the company and a total of CNY 44 million for seven responsible individuals, with the actual controller facing a 10-year ban from the securities market [7]. - The company has the right to request a hearing or submit written statements regarding the delisting decision, with failure to do so resulting in automatic forfeiture of rights [2]. Market Impact - Following the announcement of potential delisting, *ST Dongtong's stock experienced a 7.86% increase in value on the day before the suspension, with a trading volume of CNY 493 million [7]. - As of September 2025, the company had 45,869 shareholders, indicating a significant retail investor base [7]. Company Background - *ST Dongtong, listed in 2014, is recognized as a pioneer in middleware solutions in China, providing various digital products and services [8].

Core Viewpoint - *ST Dongtong (300379.SZ) is facing potential delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violate the listing rules of the Growth Enterprise Market [1][2][3] Financial Misconduct - The company inflated its revenue by 61.45 million, 84.85 million, 125.51 million, and 160.53 million in the years 2019 to 2022 respectively [2] - The inflated profits for the same years were 52.23 million, 58.77 million, 79.48 million, and 123.69 million, with the 2022 inflated profit amounting to 219.43% of the reported total profit for that year [2] - Cumulatively, from 2019 to 2022, the company inflated its revenue by 432 million and profits by 314 million [3] Regulatory Actions - The China Securities Regulatory Commission (CSRC) has issued a notice proposing a fine of 229 million against the company and a total of 44 million against seven responsible individuals, with a 10-year market ban for the actual controller [3] - The company is also at risk of being subjected to mandatory delisting due to serious violations of laws [3][4] Business Practices - The company engaged in financial fraud by acquiring 100% of Beijing Taice Technology Co., Ltd. in December 2018 and subsequently using it to fabricate business and prematurely recognize revenue [3] - The former chairman and general manager of *ST Dongtong, Huang Yongjun, was aware of and allowed the inflation of revenue and profits [3]