Tongtech(SZ:300379) Xin Lang Cai Jing·2025-09-18 23:28Core Viewpoint - Beijing Dongfang Tong Technology Co., Ltd. (referred to as Dongfang Tong or *ST Dongtong) has faced significant legal and financial repercussions due to allegations of securities fraud, leading to a continuous decline in its stock price and potential compensation claims from affected investors [1][2]. Summary by Sections Allegations of Financial Misconduct - Dongfang Tong is accused of falsifying financial statements in its annual reports from 2019 to 2022, inflating revenue and profits through fictitious business activities and premature revenue recognition [1]. - The inflated figures include revenue increases of CNY 61.45 million, CNY 84.85 million, CNY 125.51 million, and CNY 160.53 million for the years 2019 to 2022, respectively, representing 12.29%, 13.25%, 14.54%, and 17.68% of reported revenues [1]. - Profit inflation for the same years amounted to CNY 52.23 million, CNY 58.77 million, CNY 79.48 million, and CNY 123.69 million, constituting 34.11%, 22.72%, 30.35%, and 219.43% of reported profits [1]. Securities Issuance Misrepresentation - The company is also charged with fabricating significant false content in its securities issuance documents, particularly in the fundraising prospectus for a stock issuance between June and November 2022 [2]. - The total amount raised from the issuance was reported as CNY 2,199,999,992, with the issuance of 106,024,096 shares [2]. Regulatory Actions and Investor Compensation - The China Securities Regulatory Commission (CSRC) plans to impose a fine of CNY 229 million on Dongfang Tong and issue warnings to its controlling shareholder, Huang Yongjun, along with a fine of CNY 26.5 million [2]. - Huang Yongjun is also facing a 10-year ban from the securities market [2]. - Investors who suffered losses due to the alleged fraudulent activities are eligible to file compensation claims, particularly those who purchased shares between April 29, 2020, and April 14, 2025 [3].