Jiangsu Wuzhong flagged for fund misappropriation, risk warning

Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. [SSE:600200] announced it faces a potential delisting risk after its 2024 financial report received a disclaimer of opinion from Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership), triggering a "risk alert" on the company's stock beginning May 6, 2025. Additionally, the company will receive an additional risk warning due to the non-operating misappropriation of funds by related parties of its controlling shareholder, Zhejiang Fuxing Holding Group, exceeding 5% of the company's latest audited net assets. As of the disclosure date of the 2024 annual report, related parties owed the company CNY 768,932,428.63. Jiangsu Wuzhong is working to recover the misappropriated funds and strengthen internal controls. Trading will be identified as "*ST 苏吴" beginning May 6, 2025.