Tongtech(SZ:300379) Sou Hu Cai Jing·2025-09-13 00:36Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced severe penalties against Beijing Oriental Technology Co., Ltd. (ST Dongtong) for significant financial fraud, including a proposed fine of 229 million yuan and a 10-year market ban for the actual controller [1][5]. Group 1: Company Overview - Beijing Oriental Technology Co., Ltd. was established in 1997 and listed on the Growth Enterprise Market in 2014 [6]. - The company has reported continuous losses over the past three years, with a revenue of 240 million yuan and a net profit of -55 million yuan for the first half of 2025 [6]. Group 2: Financial Fraud Details - The CSRC found that ST Dongtong inflated its revenue and profits for four consecutive years from 2019 to 2022, violating securities laws [1][4]. - The company engaged in fraudulent activities, including fabricating business transactions and prematurely recognizing revenue through its wholly-owned subsidiary, Taice Technology [4]. - In 2022, ST Dongtong raised approximately 2.2 billion yuan through a stock issuance that was based on falsified financial data from its annual reports [4]. Group 3: Regulatory Actions - The CSRC plans to impose a total fine of 273 million yuan, including 44 million yuan against seven responsible individuals, with the direct supervisor, Huang Yongjun, facing a fine of 12.5 million yuan [4][5]. - Huang Yongjun, as the actual controller and chairman, played a significant role in the fraudulent activities and is subject to a 10-year ban from the securities market [5]. - The CSRC has indicated that ST Dongtong may face mandatory delisting due to its serious violations [1][4]. Group 4: Industry Context - The regulatory environment has intensified, with a clear message from the authorities to combat illegal activities and protect investors' rights [6]. - The principle of "delisting does not exempt from liability" has been established, ensuring that companies face consequences for financial misconduct even after delisting [6]. - Since 2024, the CSRC has referred over 30 delisted companies to law enforcement for suspected information disclosure crimes, emphasizing a strict enforcement approach [6].