A small article triggered a stock price flash crash! The "big bull stock" of computing power, Xiechuang Data, quickly responded, with market value shrinking by over 13.2 billion yuan in one day.

Ask AI · Why was a compliance controversy over server procurement behind the severe damage to a high-computing-power stock?

In the afternoon of March 20, the downtrend in the compute leasing concept accelerated, with CoCreation Data plunging intraday, approaching a 20CM daily limit down. As of today’s close, the company’s share price was 219.25 yuan per share, down nearly 15%. Its market value was 75.887 billion yuan, which is already down by more than 13.2 billion yuan compared with the previous close.

According to the Shanghai Securities News, today’s sharp drop in CoCreation Data’s share price may be related to a short piece about the company’s server procurement compliance.

The Shanghai Securities News reported that CoCreation Data quickly responded with an explanation regarding investors’ concerns about the compliance of its server procurement. CoCreation Data stated that some investors have reported that certain overseas server manufacturers are involved in illegal transactions. After careful verification, the company said that the relevant matter has no connection to the company. The company’s intelligent compute products are all purchased through compliant commercial channels, and the company always conducts its business in accordance with market rules and laws and regulations.

CoCreation Data was founded in 2005 and listed on the SZSE in July 2020. The company focuses on the R&D, production, and sales of consumer electronics-type products such as IoT intelligent terminals and data storage devices. In 2013, the company entered the field of IoT terminal devices; in 2021, it expanded into the cloud services business; in 2025, the company launched large-scale investment in compute infrastructure.

Recently, CoCreation Data disclosed its 2025 annual report. The company achieved operating revenue of 12.236 billion yuan, up significantly by 65.13% year over year; net profit attributable to shareholders of listed companies was 1.164 billion yuan, up 68.32% year over year; and net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses reached 1.135 billion yuan, up 69.07% year over year.

The annual report shows that the company’s surge in performance mainly relates to a substantial increase in revenue from intelligent compute products and services. In 2025, the company’s revenue from intelligent compute products and services was 2.761 billion yuan, up 1,727.17% from 151 million yuan in 2024. In addition, the company’s revenue from server and related remanufacturing products and from data storage device products both increased year over year.

In the secondary market, CoCreation Data’s share price has also been steadily rising. At the beginning of 2026, the company’s share price was still hovering around 140 yuan per share. It then hit a historical high of 273.22 yuan per share during intraday trading in February 2026; today the share price is still above 200 yuan.

As for server procurement, according to a research report compiled by Shanxi Securities, since 2025 CoCreation Data has released five asset purchase announcements, with the total intended procurement amount reaching 12.35 billion yuan. Adding the 90 billion yuan procurement plan in December, the total server procurement amount disclosed cumulatively during the year has already exceeded 21.2 billion yuan.