Tony Tech(SH:603595) Nan Fang Du Shi Bao·2025-11-06 08:14Core Viewpoint - Dongni Electronics (ST Dongni, 603595.SH) has received an administrative penalty notice from the Zhejiang Securities Regulatory Bureau, indicating violations related to timely disclosure of significant contract progress and false records in financial reports for 2022 and the first half of 2023 [1][2][8]. Summary by Relevant Sections Violations - Dongni Electronics is accused of two main violations: failure to timely disclose significant contract progress and false records in its 2022 annual report and 2023 semi-annual report [2][8]. - The first violation involves a procurement contract with Guangdong Tianyu, where Dongni Semiconductor was supposed to deliver 135,000 pieces of 6-inch silicon carbide substrates worth 675 million yuan, which accounted for 51.84% of the company's latest audited revenue. However, as of October 2023, only 6.74% of the contract had been fulfilled, and the company did not disclose this issue until January 6, 2024 [6][7]. - The second violation pertains to the inflation of profits exceeding 100 million yuan over 18 months, achieved through misclassification of expenses and inadequate provisions for inventory impairment. Specifically, the profits were inflated by 38.63% and 70.95% in the respective reports [7][8]. Penalties - The company faces a total fine of 7 million yuan, while six former executives are collectively fined 8.7 million yuan. The penalties for individual executives include 3.5 million yuan for the former chairman, 1.7 million yuan for the former general manager, and varying amounts for other executives [2][9][10]. Company Background - Dongni Electronics was founded in 2008 and listed on the Shanghai Stock Exchange in 2017. The company specializes in ultra-fine alloy wire, metal matrix composites, and other new materials, primarily serving sectors such as consumer electronics, medical, solar photovoltaic, new energy vehicles, and semiconductor materials [3].