Beijing Tongtech faces delisting for false financial reporting, fraudulent share issuance

Beijing Tongtech announced its stock will be suspended from trading on November 26, 2025, and faces potential delisting. This follows a decision by the China Securities Regulatory Commission's (CSRC) Beijing Bureau. The CSRC found Beijing Tongtech’s annual reports from 2019 to 2022 contained false information and that its 2022 private placement stock issuance used fraudulent financial data from 2019 to 2021, constituting fraudulent issuance.

These violations trigger mandatory delisting rules under the Shenzhen Stock Exchange's ChiNext Stock Listing Rules, specifically addressing continuous false financial reporting for three years and fraudulent issuance. The company's financial metrics, including operating revenue, total profit, net profit, and assets/liabilities, were falsely stated.

The CSRC imposed a fine of CNY 22,900 million on Beijing Tongtech for false reporting and fraudulent issuance. Additionally, its actual controller and former chairman, Huang Yongjun, received a 10-year market ban and combined fines of CNY 2,650 million. Other executives and individuals, including Xu Shaopu, Li Chen, Li Peng, Qi Hong, Li Ning, and Chen Zhongguo, also faced warnings and fines ranging from CNY 50 million to CNY 650 million for their involvement.