Hainan Huatie (603300.SH), a computing power dark horse under investigation by the CSRC, announced two significant stockholder share acquisition plans on October 17, with a total intended purchase amount not exceeding 100 million yuan.

According to the announcements, shareholders, directors, and General Manager Hu Danfeng, who hold more than 5% of the company's shares, plan to use their own and self-raised funds to acquire additional shares via centralized bidding through the Shanghai Stock Exchange system within six months starting October 17, 2025. The total intended acquisition amount is set to be no less than 30 million yuan (inclusive) and no more than 50 million yuan (inclusive).

Hainan Jin Kong, a party acting in concert with Hainan Huatie's controlling shareholder Haikong Chuantou, also intends to increase its stake using their own or self-raised funds through methods allowed by the Shanghai Stock Exchange (including but not limited to centralized bidding and block trading) and plans to acquire shares totaling no less than 25 million yuan (inclusive) and no more than 50 million yuan (inclusive) within the same six-month timeframe.

As of the market close on October 17, Hainan Huatie's stock price was 7.09 yuan per share, down nearly 7%, with a total market capitalization of 14.2 billion yuan.

Caught in a Computing Power "Rashomon" Previously, Hainan Huatie found itself in a public relations crisis following the termination of a 3.69 billion yuan computing power service contract. On October 16, the company was placed under investigation by the CSRC for "suspected violations of information disclosure laws."

In March 2025, Hainan Huatie's wholly-owned subsidiary, Huatie Dahuangfeng, signed a five-year "Computing Power Service Agreement" with Hangzhou X Company, amounting to 36.9 billion yuan (including tax). This agreement was seen as a landmark for Hainan Huatie's entry into the computing power market, driving the company's stock price to hit the daily limit for three consecutive trading days from March 5 to 7, and climbing to 13.26 yuan on March 12, nearly doubling from an annual low of 4.76 yuan.

However, on September 30, Hainan Huatie abruptly announced the termination of the agreement, citing "significant changes in market conditions and supply and demand" and the absence of any purchase orders since the contract was signed. The announcement of the contract termination prompted an immediate regulatory inquiry from the Shanghai Stock Exchange. This news directly led to the stock price hitting the daily limit down for two consecutive days following the holiday, sparking market speculation and raising questions from some shareholders regarding the authenticity of the orders.

Industry insiders told 21st Century Business Herald that "computing power services typically involve pre-paid amounts, although there isn’t a standard practice regarding anonymity." Notably, the previously signed "Computing Power Service Agreement" with Hainan Huatie did not contain any mention of "pre-paid amounts."

In response, staff members at Hainan Huatie stated that the previous 36.9 billion yuan computing contract was not a framework agreement but an actual contract intended for execution. "The reason for termination involves some factors in the industrial chain and changes in market conditions. Currently, the computing power business continues to generate income for the company. The previous year's report showed income of about 12 million yuan; in the first quarter of this year, it was over 50 million; the mid-year report indeed did not disclose relevant income, but this could be included in the annual report."

Accused of Financial Fraud by a "Crypto Mogul" On August 8, 2021, EBON International Holdings Inc., a major player in the Bitcoin mining industry listed in the US, held a press conference where Chairman Hu Dong stated that they had formally reported Hainan Huatie Emergency regarding serious financial fraud, severe violations of information disclosure, and allegations against actual controller Hu Danfeng and his spouse Pan Qian for embezzlement and asset stripping issues on August 6, 2021, to the Zhejiang CSRC.

Hainan Huatie Emergency is the predecessor of Hainan Huatie, primarily engaged in construction equipment leasing. In May 2024, Hainan state assets took control of Hainan Huatie and ventured into the computing power business.

Seemingly unrelated, these two companies became linked through a mining machine transaction. In 2018, Hainan Huatie's subsidiary, Zhejiang Qirui Machinery Co., Ltd. (formerly Xinjiang Huatie Heng'an Construction Safety Technology Co., Ltd.), signed a contract to sell 80,000 mining machines to EBON Communications for a total price of 403 million yuan.

Of the 80,000 mining machines, 24,000 were accepted by Xinjiang Huatie, and payment of 121 million yuan was completed in July 2018. However, issues arose regarding the acceptance of the remaining 56,000 machines, which EBON asserted should be at Xinjiang Huatie's cost, while Huatie Emergency claimed that these machines were signed off by Niubo Industrial.

Due to delayed payments, EBON brought litigation against Huatie Emergency, Xinjiang Huatie, and Niubo Industrial, applying for asset preservation and freezing several bank accounts and equity of Huatie Emergency's subsidiaries. In June 2021, the Hangzhou Intermediate People's Court held a hearing on the case.

On August 23, 2021, Hainan Huatie announced that all parties confirmed the delivery completion of the 80,000 servers (Bitcoin mining machines), with payments for the 24,000 servers settled, while debts for the remaining 56,000 servers amounting to 272 million yuan were to be paid by Niubo Industrial to EBON, with specific payment timelines stipulated in the agreement.

On September 6, 2021, Hainan Huatie further announced that police had determined there were no criminal facts as claimed by EBON Technology regarding allegations of embezzlement against Hu Danfeng, leading to the decision not to file a case.

Investor Zhang Jianping Reduces Holdings According to Hainan Huatie's first-quarter report, by the end of March, prominent investor Zhang Jianping entered the top ten shareholders list with a holding of 4.23%, becoming the third-largest shareholder, with a market valuation of approximately 899 million yuan at the end of that quarter.

However, after a consecutive rise in stock prices, Hainan Huatie's temporary announcement on May 13 revealed that Zhang's holding had dropped to 3.58%. By the mid-year report of 2025, Zhang Jianping had completely vanished from the top ten shareholder list.