Financial Overview - The company reported total revenue of CNY 152,074,731.41 for the first half of 2025, a decrease from CNY 221,933,271.08 in the same period of 2024, representing a decline of approximately 31.4% [4][5] - Total operating costs for the first half of 2025 were CNY 197,899,171.63, down from CNY 228,077,115.52 in the previous year, indicating a decrease of about 13.3% [4][5] - The net profit for the first half of 2025 was CNY 105,176,469.82, compared to a net profit of CNY 5,475,173.86 in the first half of 2024, showing a significant increase [5][6] Assets and Liabilities - Total assets at the end of the first half of 2025 amounted to CNY 1,504,030,958.30, down from CNY 1,757,857,969.48 at the beginning of the period, reflecting a decrease of approximately 14.4% [3][4] - Total liabilities decreased to CNY 318,614,658.60 from CNY 647,661,753.51, a reduction of about 50.8% [3][4] - The total equity attributable to shareholders increased to CNY 1,185,416,299.70 from CNY 1,110,196,215.97, marking an increase of approximately 6.7% [4][5] Cash Flow - The net cash flow from operating activities for the first half of 2025 was CNY 27,896,651.19, compared to CNY 32,398,357.90 in the same period of 2024, indicating a decrease [6][7] - Cash flow from investing activities showed a net inflow of CNY 175,946,706.63, a significant improvement from a net outflow of CNY 4,386,493.11 in the previous year [6][7] - Cash flow from financing activities resulted in a net outflow of CNY 314,596,678.34, compared to a net outflow of CNY 61,901,761.80 in the same period of 2024 [6][7] Earnings Per Share - Basic and diluted earnings per share for the first half of 2025 were both CNY 0.14, compared to CNY 0.01 in the same period of 2024, indicating a substantial increase in profitability per share [5][6]

Core Viewpoint - Hunan Nanxin Pharmaceutical Co., Ltd. is planning to acquire domestic pharmaceutical technology assets, which has led to significant stock price fluctuations, but the deal is still in the planning stage and faces major uncertainties [1][2][11] Group 1: Stock Performance - The stock price of Nanxin Pharmaceutical increased by 17.01% and 20% on July 28 and 29, respectively, leading to a cumulative price deviation of 30% over three trading days [1] - Following the announcement of the acquisition plan, the stock hit a 20% limit up on July 31, closing at 17.14 yuan, marking a nearly 70% increase from July 29 to July 31 [2] Group 2: Company Background - Nanxin Pharmaceutical specializes in the research, production, and sales of antiviral drugs for influenza and other infectious diseases, as well as treatments for major diseases like cancer and diabetes [4] - The company was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on March 26, 2020 [4] Group 3: Financial Performance - In 2021, the company reported a revenue of 685 million yuan, a decrease of 37.08% year-on-year, and a net loss of 167 million yuan, a decline of 225.50% compared to the previous year [5] - The company has continued to incur losses, with a projected loss of 397 million yuan in 2024, attributed to industry policy changes and increased market competition [6] Group 4: Previous Acquisition Attempts - In October 2020, Nanxin Pharmaceutical announced plans to acquire 100% of Xingmeng Bio for 2.643 billion yuan, but the deal faced multiple delays and was ultimately terminated in December 2022 due to changing market conditions and negotiation difficulties [8][10]

Core Viewpoint - *ST Suwu is facing potential delisting due to significant violations, including continuous financial fraud and misleading disclosures, as indicated by the China Securities Regulatory Commission (CSRC) [1][6] Group 1: Violations and Penalties - The company has been found guilty of failing to disclose the actual controller from 2018 to 2023, misrepresenting Qian Qunshan as the actual controller instead of the true controller [2] - *ST Suwu inflated its operating income, operating costs, and profits from 2020 to 2023, with inflated revenues of 495 million, 468 million, 431 million, and 377 million respectively, accounting for 26.46%, 26.39%, 21.26%, and 16.82% of reported revenues [3] - The company failed to disclose significant non-operating fund occupation by related parties, with balances of 127 million, 1.393 billion, 1.543 billion, and 1.693 billion from 2020 to 2023, representing 6.88%, 74.2%, 84.6%, and 96.09% of net assets [4] Group 2: Regulatory Actions - The CSRC plans to impose a fine of 10 million on *ST Suwu and additional fines on key executives, including 15 million on Qian Qunshan, 2 million on Qian Qunying, and 1.5 million on Chen Yi [5] - Qian Qunshan is also facing a 10-year ban from the securities market due to the severity of his actions as the actual controller and chairman [5] - The company acknowledges the potential for mandatory delisting and plans to cooperate with the CSRC while maintaining that its operations are normal as of the announcement date [6]

Core Viewpoint - *ST Suwu has been found guilty of multiple violations, including falsifying financial statements and failing to disclose the actual controlling shareholder, leading to a proposed fine of 10 million yuan and potential delisting from the stock exchange [1][6]. Summary by Sections Violations Identified - The company failed to disclose the actual controlling shareholder, with false records in annual reports from 2018 to 2023, incorrectly naming Qian Qunying as the actual controller instead of Qian Qunshan [2]. - *ST Suwu inflated revenue, costs, and profits through non-commercial trade activities with related companies, resulting in inflated revenues of 495 million yuan, 468 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 reported revenues respectively [3]. - The company also failed to disclose significant non-operating fund occupations by related parties, with balances of 127 million yuan, 1.393 billion yuan, 1.543 billion yuan, and 1.693 billion yuan from 2020 to 2023, representing 6.88%, 74.2%, 84.6%, and 96.09% of net assets respectively [5]. Proposed Penalties - The China Securities Regulatory Commission (CSRC) proposed a fine of 10 million yuan for *ST Suwu and a 10-year market ban for Qian Qunshan, the actual controller and chairman [6][7]. - Additional fines were proposed for other board members, including 15 million yuan for Qian Qunshan, 2 million yuan for Qian Qunying, and 1.5 million yuan for Chen Yi [7]. Company Status - As of July 11, *ST Suwu's stock price was 2.42 yuan per share, with a total market capitalization of 1.723 billion yuan [10]. - The company has stated it will cooperate with the CSRC and exercise its rights to defend against the proposed penalties [9].