Tony Tech(SH:603595) Mei Ri Jing Ji Xin Wen·2025-11-06 09:53Core Viewpoint - Dongni Electronics (ST Dongni, 603595.SH) has received an administrative penalty notice from the Zhejiang Securities Regulatory Bureau for failing to timely disclose significant contract progress and for false records in its annual report [1][7]. Group 1: Administrative Penalty - The company will have its stock marked with an "ST" risk warning, changing its A-share stock name to "ST Dongni" [2]. - Dongni Electronics and six of its former executives face a total fine of 15.7 million yuan, with the company’s secretary, Weng Xinyi, receiving a warning and a fine of 900,000 yuan [2][8]. Group 2: Disclosure Issues - The first violation involves the failure to timely disclose significant contract progress. In early 2023, Dongni Semiconductor, a subsidiary, signed a procurement contract with Guangdong Tianyu for the delivery of 135,000 pieces of 6-inch silicon carbide substrates, valued at 675 million yuan, which represents 51.84% of the company's latest audited main business income [5]. - By the end of October 2023, Dongni Semiconductor had only completed 6.74% of the contract delivery, and the company did not disclose the inability to meet the contract terms until January 6, 2024 [5]. Group 3: Financial Misreporting - The second violation pertains to false records in the 2022 annual report and the 2023 semi-annual report, where the company inflated profits by over 100 million yuan through various accounting manipulations [6]. - Specifically, the 2022 annual report and the 2023 semi-annual report showed inflated profits of 38.63% and 70.95%, respectively, totaling approximately 111 million yuan [6]. Group 4: Responsibility and Consequences - The Zhejiang Securities Regulatory Bureau has identified several key executives as directly responsible for the violations, including the former chairman, general manager, and financial director, among others [7]. - The proposed penalties for the executives include fines ranging from 60,000 to 3.5 million yuan, depending on their roles in the violations [7][8]. Group 5: Market Reaction - Following the announcement, Dongni Electronics' stock has experienced a continuous decline, hitting the limit down for four consecutive trading days, with a closing price of 18.58 yuan and a total market value of 4.3 billion yuan as of November 5 [9].