By Fineline Cube 
Jiangsu Wuzhong Pharmaceutical Group Corp. (SHA: 600200) received an Administrative Penalty Decision ([2025] No. 145) from the China Securities Regulatory Commission (CSRC) mandating delisting for major violations, including false disclosure of its actual controller and overstated financials from 2018‑2023. Trading will be suspended from 26 Nov 2025.
Regulatory Violation Summary
| Violation | Period | Details |
|---|---|---|
| False Controller Disclosure | 2018‑2023 | Annual reports contained false records regarding actual controller |
| Overstated Financials | 2020‑2023 | Operating revenues, costs, and profits overstated; related party fund occupation undisclosed |
| Regulatory Action | 25 Nov 2025 | CSRC decision triggers mandatory delisting under SSE Stock Listing Rules |
| Trading Status | 26 Nov 2025 | Shares suspended per Article 9.5.7 of SSE rules |
Violation Impact
- Major Violations: Breaches constitute grounds for mandatory delisting as stipulated in SSE listing rules
- Financial Misrepresentation: Multi‑year revenue/profit inflation undermines investor confidence and regulatory compliance
- Governance Failure: Failure to disclose related party transactions and actual controller breaks fundamental transparency requirements
Market Impact & Outlook
| Metric | Value |
|---|---|
| Market Cap (Pre‑Notice) | ~¥4.5 billion (US$620 million) |
| Share Price Reaction | Expected 60‑80% decline on trading halt announcement |
| Institutional Ownership | ~35% of float held by mutual funds and index trackers |
| Reputational Risk | Long‑term damage to brand and ability to raise capital in China markets |
| Delisting Timeline | Formal delisting expected within 6‑12 months after suspension |
- Investor Remedies: Shareholders may pursue class‑action lawsuits for securities fraud; CSRC may impose additional fines on executives
- Industry Precedent: Only the second major pharma delisting in China after Kangmei Pharmaceutical (2019), signaling heightened regulatory scrutiny
- Liquidity: Shares will trade OTC if delisted, eliminating institutional investment eligibility
Forward‑Looking Statements
This brief contains forward‑looking statements regarding Wuzhong Pharma’s delisting process, timeline, and market impact. Actual results may differ materially due to risks including appeal outcomes, regulatory enforcement, and legal proceedings.-Fineline Info & Tech