Core Viewpoint - *ST Suwu, after 26 years of listing, is facing forced delisting due to four consecutive years of financial fraud and significant fund misappropriation, potentially becoming the ninth major illegal delisting company by 2025 [1][3][17] Financial Fraud - From 2020 to 2023, *ST Suwu engaged in continuous financial fraud, with inflated profits peaking at 51.65%. The total inflated profit amounted to 0.76 billion, with inflated operating income and costs reaching 1.772 billion and 1.695 billion respectively [6][17] - The proportion of inflated profits was notably high, with over 25% of profits being fraudulent from 2021 to 2023, and the highest in 2021 at 51.65% [6][17] Fund Misappropriation - *ST Suwu has experienced severe fund misappropriation, with the highest misappropriation rate reaching 96.09%. The non-operating fund misappropriation from 2020 to 2023 was recorded at 1.27 billion, 1.393 billion, 1.543 billion, and 1.693 billion respectively, representing 6.88%, 74.20%, 84.60%, and 96.09% of the net assets [7][8][17] - As of 2024, there remains 769 million in misappropriated funds that have not been returned [8] Disclosure Issues - The actual controller of *ST Suwu changed in February 2018, but this was not disclosed in annual reports from 2018 to 2023 [10][11] - The company has faced multiple penalties and has been under investigation by the China Securities Regulatory Commission (CSRC) for information disclosure violations [3][13] Regulatory Environment - The new delisting regulations effective from January 1, 2025, have tightened the criteria for major illegal delisting, particularly focusing on financial fraud [17][18] - Since the tightening of regulations, eight companies have already faced delisting due to financial fraud, with *ST Suwu likely to follow [1][18] Investor Protection - In response to the crackdown on financial fraud, investor protection measures are being enhanced, including civil compensation lawsuits initiated by investors against *ST Suwu [19]

Core Viewpoint - *ST Suwu (600200) is facing mandatory delisting due to four consecutive years of financial fraud and significant fund misappropriation, potentially becoming the ninth major company to be delisted for serious violations by 2025 [1][2][3] Financial Fraud - From 2020 to 2023, *ST Suwu engaged in continuous financial fraud, with profit inflation peaking at 51.65% in 2021. The total inflated profit amounted to 0.76 billion yuan, with inflated operating income and costs reaching 1.772 billion yuan and 1.695 billion yuan respectively [6][7] - The proportion of inflated profits was notably high, with over 25% of profits being fraudulent from 2021 to 2023, and 2021 seeing the highest inflation rate at 51.65% [6] Fund Misappropriation - *ST Suwu has experienced severe fund misappropriation, with the highest rate reaching 96.09% of its net assets by 2023. The non-operational fund occupation by related parties increased significantly from 1.27 billion yuan in 2020 to 16.93 billion yuan in 2023 [7][8] - By 2023, over 70% of *ST Suwu's net assets had been "emptied," with 7.69 billion yuan of misappropriated funds still outstanding [8] Disclosure Issues - The company failed to disclose a change in its actual controller for six years, which occurred in February 2018, leading to significant penalties [9] - The company and its main responsible individuals were fined a total of 30.5 million yuan, with the chairman facing the highest penalty of 15 million yuan and a 10-year market ban [9] Regulatory Environment - The new delisting regulations effective from January 1, 2025, have tightened the standards for mandatory delisting, particularly focusing on financial fraud [2][14] - Since the tightening of regulations, eight companies have already faced delisting procedures due to serious violations, indicating a trend towards stricter enforcement [14] Company Background - *ST Suwu, established in 1994 and listed in 1999, has struggled with poor performance in its core pharmaceutical and real estate businesses, leading to continuous losses from 2018 to 2023 [11] - Despite a brief recovery in 2024 due to a new product line, the company reported a net loss of 0.74 billion yuan in the first quarter of 2025 [11] Legal and Investor Protection - Following the investigation into *ST Suwu, investors have begun filing civil compensation lawsuits, supported by new measures for investor protection [15] - The introduction of advance compensation and commitments from administrative enforcement parties aims to enhance investor rights and recovery options [15]

Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. is facing multiple negative events, including an investigation by the China Securities Regulatory Commission (CSRC) for information disclosure violations, a lawsuit against its wholly-owned subsidiary for tax fraud, and significant financial issues, leading to a sharp decline in investor confidence and stock price [1][2][5]. Group 1: Regulatory and Legal Issues - The chairman of Jiangsu Wuzhong, Qian Qunshan, is under investigation by the CSRC for suspected information disclosure violations, which has raised concerns about the company's future [1][2]. - The company’s wholly-owned subsidiary, Jiangsu Wuzhong Import and Export Co., was sued for allegedly assisting in tax fraud, with the involved amount reaching 242 million yuan [2][3]. - The company has been issued a "non-standard" audit opinion for its annual report, and its stock has been marked with risk warnings, indicating potential delisting [3][4]. Group 2: Financial Performance and Market Reaction - Jiangsu Wuzhong's stock price has plummeted to 2.38 yuan per share, reflecting a cumulative decline of 73.44% from February 27 to May 15 [5]. - The company reported a net profit loss for several consecutive years, with figures showing a decline from 2018 to 2023, although a recent entry into the medical aesthetics market has provided some revenue boost [4][5]. - The medical aesthetics business, particularly the introduction of the AestheFill product, has shown promising growth, generating 113 million yuan in revenue in the first quarter of 2024, despite overall revenue decline in other segments [4]. Group 3: Internal Management and Future Outlook - The series of negative announcements has revealed significant internal control issues within Jiangsu Wuzhong, raising uncertainties about its future development [4]. - The company needs to enhance its corporate governance and restore investor confidence while seeking new growth points in its pharmaceutical segment to recover from its current low performance [5].