From China Daily (link):
A man surnamed Zou, was sentenced to one year in prison by the Chongwen District People’s Court in Beijing, for organizing a gay party through the internet, the website of the China News Service reported on Friday.
Zou, an Internet fan, was inspired by the news about a “Gay Hotel” on a website in April, 2005. He set up his own website called “Beijing Sky” to advertise a “Hot Dream Party for Cool Beijing Boys” and attracted homosexuals to engage in prurient activities and provide illegal sex services at his house.
“Ten suspected criminals, all males, were engaging in illegal sex activities, ” the police reported, “Zou’s behavior constituted a crime of “Promoting Promiscuity”.
See also Wikipedia’s “Homosexuality in China” (link); – Danwei.org’s “The Chinese Government: It’s OK to be gay” (link)