Tongtech faces delisting threat over financial fraud allegations

Beijing Tongtech Co., Ltd. announced it faces potential mandatory delisting after the China Securities Regulatory Commission (CSRC) issued an administrative penalty pre-notification on September 12, 2025. The CSRC’s findings indicate the company's annual reports from 2019 to 2022 contained false information and that its 2022 private placement of shares constituted fraudulent issuance, citing false financial data from 2019 to 2021.

These alleged violations could trigger mandatory delisting under Articles 10.5.1(1) and 10.5.2(1)(6) of the Shenzhen Stock Exchange ChiNext Stock Listing Rules. The company was initially placed under investigation on April 14, 2025, for suspected false financial reporting. Beijing Tongtech stated it will fully cooperate with the CSRC, exercise its legal rights to present its case, and will adhere to disclosure obligations.

The final outcome hinges on the CSRC's official penalty decision. Should the company be found to have committed significant illegal activities, its shares will be terminated from listing. Investors are advised to monitor subsequent announcements and exercise caution.