Tongtech(SZ:300379) Shang Hai Zheng Quan Bao·2025-09-12 18:42Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a notice of administrative punishment against Beijing Dongfangtong Technology Co., Ltd. (ST Dongtong) for falsifying financial data over four consecutive years, leading to potential delisting from the Shenzhen Stock Exchange [1][2]. Group 1: Company Actions and Penalties - ST Dongtong is facing a fine of 229 million yuan for the company and a total of 44 million yuan for seven responsible individuals, with the actual controller facing a 10-year ban from the securities market [1]. - The CSRC has initiated delisting procedures for ST Dongtong due to serious violations, including fraudulent issuance of stocks in 2022 [1][2]. - The company’s chairman, Huang Yongjun, has been fined 26.5 million yuan and banned from the securities market for 10 years for his role in the violations [2]. Group 2: Financial Misconduct Details - From 2019 to 2022, ST Dongtong inflated its revenue and profits through fictitious business activities and premature revenue recognition via its wholly-owned subsidiary, Beijing Taice Technology Co., Ltd. [2]. - The company’s 2019 to 2022 annual reports contained false financial data, which was also referenced in its 2022 fundraising prospectus, constituting fraudulent issuance [2]. Group 3: Industry Context and Regulatory Response - The capital market has seen stringent actions against financial fraud, with significant penalties imposed on other companies and individuals involved in similar misconduct, reflecting a tough regulatory stance [3]. - The regulatory environment is evolving to create a comprehensive deterrent system against financial fraud, aiming to protect investor interests and maintain market integrity [3].