Mei Ri Jing Ji Xin Wen·2025-11-26 14:44Core Viewpoint - *ST Dongtong (300379.SZ) is facing potential delisting from the Shenzhen Stock Exchange due to false disclosures in its annual reports from 2019 to 2022, which violate the listing rules of the ChiNext board [1][2]. Summary by Sections Company Financial Misconduct - The company has been found to have falsely reported revenues and profits over the years 2019 to 2022, with inflated revenues of CNY 614.51 million, CNY 848.51 million, CNY 1.255 billion, and CNY 1.605 billion respectively [3]. - The inflated profits for the same years were CNY 522.28 million, CNY 587.74 million, CNY 794.82 million, and CNY 1.2369 billion, with the 2022 inflated profit accounting for 219.43% of the reported total profit for that year [3][4]. - Cumulatively, the company inflated its revenues by CNY 432 million and profits by CNY 314 million from 2019 to 2022 [4]. Regulatory Actions - The China Securities Regulatory Commission (CSRC) has issued a notice indicating a proposed fine of CNY 229 million for the company and a total of CNY 44 million for seven responsible individuals, with the actual controller facing a 10-year ban from the securities market [7]. - The company has the right to request a hearing or submit written statements regarding the delisting decision, with failure to do so resulting in automatic forfeiture of rights [2]. Market Impact - Following the announcement of potential delisting, *ST Dongtong's stock experienced a 7.86% increase in value on the day before the suspension, with a trading volume of CNY 493 million [7]. - As of September 2025, the company had 45,869 shareholders, indicating a significant retail investor base [7]. Company Background - *ST Dongtong, listed in 2014, is recognized as a pioneer in middleware solutions in China, providing various digital products and services [8].