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2025-09-12 18:32:22
[CSRC Punishes *ST Dongtong for Serious Financial Fraud: Proposed Fine of 229 Million Yuan and Delisting] (1) On Friday, the China Securities Regulatory Commission (CSRC) issued advance notice of administrative penalties against Beijing Dongfangtong Technology Co., Ltd. (stock abbreviation: *ST Dongtong), a company listed on the Shenzhen Stock Exchange's Growth Enterprise Market (GEM) board, for allegedly falsifying financial data in its periodic reports. (2) An investigation revealed that ST Dongtong had inflated its operating revenue and profits for four consecutive years, violating relevant securities market laws and regulations. Based on these violations, the CSRC proposes to fine ST Dongtong 229 million yuan, impose a total fine of 44 million yuan on seven individuals directly responsible, and impose a 10-year securities market ban on the company's actual controller. (3) Notably, *ST Dongtong's illegal activities are suspected of meeting the criteria for mandatory delisting due to major violations, and the Shenzhen Stock Exchange will initiate delisting procedures in accordance with relevant regulations. In addition, regarding the criminal clues that may be involved in the case, the CSRC clearly stated that it will adhere to the principle of "transferring as much as possible" and promptly transfer them to the public security organs for handling in strict accordance with the Criminal Law and the Provisions of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards for Filing and Prosecuting Criminal Cases under the Jurisdiction of Public Security Organs (II). This investigation and punishment also reflects the regulatory authorities' strict control over the financial authenticity of GEM listed companies, further strengthening the compliance bottom line of information disclosure in the capital market.
