Summary of Key Points Core Viewpoint - *ST WanFang (000638) has experienced a significant decline in stock price, raising concerns about potential control changes and risks of forced delisting due to ongoing investigations and financial performance issues [1][3]. Trading Information - As of November 7, 2025, *ST WanFang closed at 6.77 yuan, down 5.05%, with a trading volume of 415,500 shares and a turnover of 28.2 million yuan [1]. - The stock has seen a continuous decline for three days, with two out of the last five trading days experiencing declines exceeding 5% [1][3]. - Over the past ten trading days, there has been a cumulative net outflow of 106 million yuan from major funds, despite a 17.94% increase in stock price during that period [1]. Fund Flow - On November 7, 2025, major funds saw a net inflow of 5.26 million yuan, marking an end to the recent trend of net outflows [1][3]. - Retail investors contributed a net inflow of 712,100 yuan, while speculative funds experienced a net outflow of 5.98 million yuan [1]. Company Announcements - The stock has triggered an abnormal trading fluctuation due to a cumulative price drop of 15.61% over three consecutive trading days [1][3]. - The company confirmed that there are no undisclosed matters affecting its operations, but there is a risk of control change due to the potential liquidation of 90.86 million shares held by the controlling shareholder [1]. - The company is under investigation by the China Securities Regulatory Commission for alleged violations of information disclosure, which poses a significant risk of forced delisting [1][3]. - For the first three quarters of 2025, the company reported a net profit of -8.59 million yuan, with a price-to-earnings ratio significantly higher than the industry average [1].

Core Viewpoint - The company, Jiangsu Wuzhong Pharmaceutical Development Co., Ltd., is facing significant risks due to an investigation by the China Securities Regulatory Commission (CSRC) and the freezing of several bank accounts due to overdue loans, which may impact its financing capabilities and operations [2][4]. Group 1: Bank Account Freezing - The company and its wholly-owned subsidiary, Jiangsu Wuzhong Pharmaceutical Sales Co., Ltd., have had a total of 31 bank accounts frozen, with a total amount of approximately RMB 2.65 million, accounting for 0.15% of the company's latest audited net assets [2][3]. - The freezing of accounts is primarily due to a financial loan dispute with Nanyang Commercial Bank (China) Co., Ltd., Suzhou Branch, where the subsidiary has an overdue loan of RMB 20.96 million [3][4]. Group 2: Impact on Operations - Currently, the company's production and operations are proceeding normally, and the freezing of bank accounts has not significantly affected its cash flow or operational activities [4]. - However, the ongoing investigation by the CSRC and the overdue debts may lead to a decline in the company's financing capabilities, potentially impacting some business operations [4]. Group 3: Response Measures - The company is actively communicating with relevant parties to resolve the issues related to the frozen accounts and is seeking new financing channels and optimizing its debt structure to mitigate debt risks [5].