As soon as he received the dividends of “children’s face needle” and turned losses, Jiangsu Wuzhong was investigated by the China Securities Regulatory Commission for violating the law.

Photo source: Visual China

Blue Whale News, February 26 (Reporter Wang Jianwen)On the evening of February 26, Jiangsu Wuzhong (600200.SH) issued an announcement stating that the China Securities Regulatory Commission decided to file a case against the company because the company was suspected of illegal information disclosure. If the facts subsequently determined by administrative penalties by the China Securities Regulatory Commission touch on the situation of major illegal forced delisting stipulated in the Stock Listing Rules of the Shanghai Stock Exchange, the company’s shares will be subject to major illegal forced delisting.

Regarding the specific circumstances of the company’s suspected illegal information disclosure, Blue Whale News repeatedly called Jiangsu Wuzhong for verification, but no reply was received as of press time.

Jiangsu Wuzhong was established in 1994. It was formerly a school-run enterprise in the general education system. It was listed on the Shanghai Stock Exchange in 1999. After listing, the company’s control rights have changed many times. In 2009, the company’s actual controller, Wuzhong District School-run Industrial Company of Suzhou City, transferred control of the listed company to nine natural persons including Zhao Weiyi, Yao Jianlin and Xia Jianping.

In 2018, Jiangsu Wuzhong changed hands again. Seven actual controllers of the company, except Zhao Weiyi and Yao Jianlin, transferred their equity in Wuzhong Holdings, the controlling shareholder of the listed company, to Fuhui Industrial. Since then, Qian Qunying, the actual controller of Fuhui Industrial, became the company’s new actual controller. As of the end of the third quarter of 2024, Qian Qunying controlled 17.24% of the shares of the listed company through Wuzhong Holdings.

When Qian Qunying entered Wuzhong, Jiangsu Province, the main business of listed companies was still chemical-drug-related business. At present, the company’s main chemical products cover anti-infection, immune regulation, anti-tumor, digestive system, cardiovascular and other fields. However, due to the poor performance of the pharmaceutical business, Jiangsu Wuzhong began its transformation.

In April 2021, Jiangsu Wuzhong established the Medical Beauty Business Department. In December 2021, Wuzhong Aesthetics, a wholly-owned subsidiary of Jiangsu Wuzhong, invested a total of 166 million yuan through capital increase + equity transfer to obtain a 51% equity of Datus Medical, in order to obtain exclusive sales agency rights in the China market for Korean company Regen Biotech,Inc product EstheFill.

Ai Sufei is the fourth approved medical beauty regeneration injection in China and the first imported children’s face needle. In addition to this product, the other three domestic medical beauty regenerative injections include Yiyanshi (Girl Needle) under Huadong Pharmaceutical, Aiweilan (Tongyan Needle) under Changchun St. Boma Biological, and Rubai Angel under Aimei.

As the medical beauty business began to generate revenue, Jiangsu Wuzhong successfully turned a profit. From 2021 to 2023, Jiangsu Wuzhong’s operating income was 1.775 billion yuan, 2.026 billion yuan, and 2.240 billion yuan respectively; the net profit attributable to the parent company was 23 million yuan,-76 million yuan, and-72 million yuan respectively.

According to the performance forecast recently released by Jiangsu Wuzhong, the company is expected to achieve a net profit attributable to the parent company of 55 million yuan to 80 million yuan in 2024. The turnaround in performance is mainly due to the fact that Ai Sufei started to go public and sold in April 2024 and generated profits.

It is worth noting that after Qian Qunying entered Wuzhong, Jiangsu Province, listed companies issued fixed increase plans twice in 2021 and 2023, and the fixed increase targets all covered the company’s re-based holdings under the control of Qian Qunying. Among them, the first fixed increase plan raised 300 million yuan to replenish current and repay loans. The second fixed increase plan raised 1.2 billion yuan to build the first phase of the R & D and industrialization base and replenish working capital.

However, neither of these two fixed increases was successfully implemented. Among them, after the second fixed increase plan was issued, the Shanghai Stock Exchange sent an inquiry letter to Wuzhong, Jiangsu Province. The questions related to the necessity of the investment project, whether the fixed increase will affect the control of the listed company, and the company’s operations. Shortly after responding to the inquiry letter, in January 2024, the company announced the termination of this fixed increase.

As of the close on February 26, Jiangsu Wuzhong’s share price closed at 8.96 yuan/share, with a total market value of approximately 6.4 billion yuan.