Tongtech(SZ:300379) Nan Fang Du Shi Bao·2025-09-12 12:53Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced severe penalties against Dongfang Tong (*ST Dongtong) for serious financial fraud, including a fine of 229 million yuan and a 10-year market ban for the actual controller [1][5][6]. Group 1: Financial Fraud Details - Dongfang Tong has inflated its revenue and profits for four consecutive years, violating securities laws [1][2]. - The company reported inflated revenues of 61.45 million yuan, 84.85 million yuan, 125.51 million yuan, and 160.53 million yuan for the years 2019 to 2022, representing 12.29%, 13.25%, 14.54%, and 17.68% of the reported revenue, respectively [2]. - The inflated profits for the same years were 52.23 million yuan, 58.77 million yuan, 79.48 million yuan, and 123.69 million yuan, accounting for 34.11%, 22.72%, 30.35%, and 219.43% of the reported profit, respectively [2]. Group 2: Securities Issuance Misconduct - Dongfang Tong fabricated significant false content in its securities issuance documents, including the "募集说明书" (fundraising prospectus) [3]. - The company disclosed a total of 106 million shares to raise 2.2 billion yuan, using false financial data from its annual reports [3]. Group 3: Penalties and Consequences - The CSRC imposed a fine of 229 million yuan on Dongfang Tong and a total of 44 million yuan on seven responsible individuals [1][5]. - The penalties for key individuals include 26.5 million yuan for the former chairman and general manager, Huang Yongjun, who also received a 10-year market ban [5][6]. - Other executives from both Dongfang Tong and its subsidiary, Taice Technology, received various fines for their roles in the fraudulent activities [4][5].