Tongtech(SZ:300379) Feng Huang Wang·2025-09-12 23:30Core Viewpoint - *ST Dongtong (300379.SZ) is facing severe penalties for financial fraud, with the China Securities Regulatory Commission (CSRC) proposing a fine of 229 million yuan and initiating delisting procedures due to significant violations of securities laws [1][2]. Financial Misconduct - From 2019 to 2022, *ST Dongtong inflated its revenue by a total of 432 million yuan and profits by 314 million yuan through fictitious business activities and premature revenue recognition [2][3]. - The inflated revenues represented 12.29%, 13.25%, 14.54%, and 17.68% of the reported revenues for the respective years, while the inflated profits accounted for 34.11%, 22.72%, 30.35%, and 219.43% of the reported profits [2]. Administrative Actions - The CSRC has issued a notice of administrative penalties, proposing fines of 229 million yuan for the company and 44 million yuan for seven responsible individuals, with the actual controller facing a 10-year ban from the securities market [1][3]. - The company’s actual controller, Huang Yongjun, is directly responsible for the fraudulent activities and has been under investigation for violations of information disclosure laws [3]. Company Background - Established in August 1997 and listed in January 2014, *ST Dongtong is a provider of security and industry information solutions, offering middleware, network security, and digital products [4]. - The company has reported continuous losses from 2022 to 2024, with a net loss of 55.16 million yuan in the first half of this year [4].