Core Viewpoint - Hangzhou Garden (300649.SZ) is facing an administrative penalty of 7.38 million yuan due to illegal subcontracting of an EPC project, as determined by the Nanchang Housing and Urban-Rural Development Bureau [1][2]. Group 1: Administrative Penalty Details - The Nanchang Housing and Urban-Rural Development Bureau has initiated an investigation into Hangzhou Garden for alleged illegal subcontracting of the EPC project along Jinshan Avenue [1][2]. - The total penalty includes an administrative fine of 320,000 yuan and the confiscation of illegal gains amounting to 7.06 million yuan, totaling 7.38 million yuan [2]. - Hangzhou Garden has the right to contest the findings and penalties within five working days of receiving the notice [2]. Group 2: Legal Background and Previous Penalties - Hangzhou Garden has previously faced penalties for similar violations, including a confiscation of 13.86 million yuan in illegal gains and a fine of 533,000 yuan in 2022 [3][4]. - The company had previously appealed against these penalties, which were later revoked by the Nanchang Housing and Urban-Rural Development Bureau in January 2024 [4]. - As of the end of 2024, the contract asset balance related to the case was reported at 45.14 million yuan, with a provision for contract asset impairment of 4.68 million yuan [4]. Group 3: Industry Context - The design capability has become a core competitive factor in the landscape and greening industry, with the EPC model gaining traction for its integrated approach to design and construction [3].