Having included more than CNY37.19 million as additional profit in its 2004 annual results, Datang Telecom has been asked by the China Securities Regulatory Commission to pay a CNY300,000 fine and correct its behavior.

Datang Telecom said in an announcement that the company increased its earnings by about CNY37.19 million by capitalizing expenditures, reducing asset reserves and improperly confirming investment return in their total profit. Datang Telecom said that there were big mistakes in their 2004 annual financial report as the appendix of the financial report did not disclose much detail about the convertible net value of the stock.

Besides the company, some concerned staff has also been given a fine or warning.

On April 6, 2005, Datang Telecom released its 2004 fiscal year report, which showed the company's income from major business was CNY2.629 billion, and net profit was CNY19.82 million. This is the best achievement the company has made since a great loss in 2003.