Tongtech(SZ:300379) Zheng Quan Ri Bao·2025-09-12 16:08Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a notice of administrative penalty against Beijing Dongfangtong Technology Co., Ltd. (*ST Dongtong) for falsifying financial data over four consecutive years, leading to a proposed fine of 229 million yuan and a potential delisting from the Shenzhen Stock Exchange due to serious violations [1][2][3]. Financial Misconduct - *ST Dongtong has been found to have inflated revenue and profits from 2019 to 2022 through fictitious transactions and premature revenue recognition, resulting in false disclosures in its annual reports [3][4]. - The company reported significant losses in recent years, with net profits of -673 million yuan in 2023 and -576 million yuan in 2024, continuing to incur losses in the first half of 2023 with a net profit of -55 million yuan [2][3]. Regulatory Actions - The CSRC plans to impose a total fine of 273 million yuan, including 229 million yuan on the company and 44 million yuan on seven responsible individuals, alongside a 10-year market ban for the actual controller [1][4]. - This incident marks the 12th company this year facing potential delisting due to financial fraud, indicating a heightened regulatory crackdown on such misconduct [1][2]. Market Impact - Following the announcement of the investigation in April, *ST Dongtong's stock price plummeted, reaching a low of 4.13 yuan per share, with a maximum decline exceeding 70% [2]. - The number of shareholders decreased by 13,300 in the second quarter of 2023, reflecting a loss of investor confidence [2]. Legal and Compliance Framework - The new regulatory framework emphasizes a comprehensive accountability system for financial fraud, including civil and criminal liabilities for responsible parties [6][7]. - The CSRC has committed to transferring any criminal evidence to law enforcement, reinforcing the seriousness of financial misconduct [6][8].