Hainan Huatie was ordered to correct, given a warning, and fined 3 million yuan by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission for failing to promptly disclose material progress on a subsidiary's computing power service agreement. The company's wholly-owned subsidiary, Huatie Bumblebee, signed a 3.69 billion yuan computing power service agreement in March 2025, originally scheduled for delivery by the end of April. After two delays due to missed delivery deadlines, the company did not disclose a termination announcement until September 30. Then-general manager Hu Danfeng was fined 1 million yuan, while then-chairman Zhang Qiao and then-board secretary Guo Haibin were each fined 600,000 yuan. The Shanghai Stock Exchange also issued a public reprimand to the three individuals. The company stated that the matter does not trigger mandatory delisting conditions and that production and operations remain normal.
Zhejiang Huatie Constr SafetyFined 3 million yuan for failing to disclose material progress on a subsidiary's computing power service agreement.
Subsidiary's agreement was the subject of the disclosure violation, leading to fines and reputational damage.