After the Shanghai Stock Exchange issued a warning, it was also warned by the Shanghai Securities Regulatory Bureau, and on the same day, it was under investigation by the China Securities Regulatory Commission. What did Digital Technology say?

Why is the disclosure of AI · Digital Science’s satellite internet considered inaccurate?

Daily Economic News Reporter: Wen Duo Daily Economic News Editor: Dong Xing Sheng

On April 3, Digital Science (SH600850, stock price 22.04 yuan, market value 14.99B yuan) announced that the company recently received a “Notice of Filing” issued by the China Securities Regulatory Commission (CSRC), due to suspected violations of information disclosure laws and regulations, the CSRC decided to file a case against the company.

On the same day, the company also received a warning letter from the Shanghai Securities Regulatory Bureau, pointing out that in the investor relations activity record form for December 2025 and the information release on Shanghai Stock Exchange E-Interaction, the disclosure about subsidiary Baifei Electronics in the satellite internet field was inaccurate and incomplete, with misleading statements, omitted risk warnings, and other issues. The Shanghai Securities Regulatory Bureau decided to impose administrative regulatory measures by issuing a warning letter to Digital Science and the company’s then-Secretary of the Board and Deputy General Manager Hou Zhiping.

This is another warning following the regulatory alert issued by the Shanghai Stock Exchange on January 13 regarding this matter.

Misleading statements in information disclosure

The Shanghai Securities Regulatory Bureau found that between December 17 and December 31, 2025, Digital Science made two investor relations activity records and three E-Interaction information releases stating: “In the satellite internet field, Baifei Electronics mainly provides three types of products: high-performance satellite onboard computing, AI intelligent computing, and radio frequency transmission,” and “In the satellite internet field, Baifei Electronics has successfully built a fully domestically developed solution.”

The Shanghai Securities Regulatory Bureau determined that the voluntary disclosures made by the company in these investor relations activities were inaccurate and incomplete, with misleading statements and omitted risk warnings, violating relevant provisions of the “Administrative Measures for Information Disclosure by Listed Companies.”

According to the content of the “Warning Letter,” Hou Zhiping has served as the company’s Secretary of the Board and Deputy General Manager since March 2013 and is responsible for the company’s information disclosure matters mentioned above. The Shanghai Securities Regulatory Bureau decided to impose administrative regulatory measures by issuing a warning letter to Digital Science and Hou Zhiping.

The company and related personnel stated in the announcement that they will conduct deep reflection, learn lessons, further strengthen their study of relevant laws, regulations, and normative documents, continuously improve the company’s standardized operation and information disclosure level, and effectively safeguard the interests of the company and all shareholders.

On January 13, the Shanghai Stock Exchange issued a regulatory warning to the company and Hou Zhiping. The exchange stated at the time: “The content disclosed in the investor relations activity record form did not accurately reflect the development stages, sales scale, and overall operational impact of the company’s satellite communication and AI products, nor did it fully warn of uncertainties regarding future development. After regulatory supervision, the company issued a clarification. The information disclosure was inaccurate and incomplete, risk warnings were insufficient, which could mislead investors’ decision-making.”

Previous lack of commercial spaceflight operations

According to the “Investor Relations Activity Record Form of China Electronics Digital Technology Co., Ltd. (December 16, 2025 – December 25, 2025)” published by Digital Science on December 31, 2025, the listed company described its subsidiary Baifei Electronics’ business in a relatively optimistic manner during exchanges with institutional investors such as Cinda Securities, Hua’an Securities, and Dongwu Securities.

When asked about “Baifei Electronics’ product layout in the commercial spaceflight field,” the company responded: “In the satellite internet field, Baifei Electronics mainly provides three types of products: high-performance satellite onboard computing, AI intelligent computing, and radio frequency transmission, achieving interconnected high-speed communication architecture for collaborative computing.”

Regarding “Baifei Electronics’ technological advantages in products for the commercial spaceflight field,” the company stated: “Baifei Electronics’ products feature high security and high reliability, stemming from its long-term technical accumulation in specialized industries. In the satellite internet field, Baifei Electronics has successfully built a fully domestically developed solution.”

On the progress of Baifei Electronics’ AI business, the company said: “In specialized fields, Baifei Electronics continues to follow up on relevant model projects, with AI products now in mass production. The company can provide integrated cloud-edge solutions, including blade components and complete machine products, based on industry application needs. Currently, demand for related services is broad, with multiple new projects underway, and overall order acquisition and R&D implementation are going well.”

Digital Science’s stock price experienced a significant increase on December 15, 2025, rising from an opening price of 26.56 yuan per share and fluctuating upward, reaching 35.98 yuan per share on January 12, 2026. That evening, the company issued a risk warning, stating: “The company has not previously engaged in commercial spaceflight operations. In 2025, it developed a small number of satellite communication products such as intelligent computing and onboard communication. In 2025, the business order volume was about 3.9 million yuan, accounting for less than 0.1% of the company’s overall business. This is not the company’s main business, and future development is highly uncertain.”

Daily Economic News