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]