HES(SZ:002963) Mei Ri Jing Ji Xin Wen·2025-11-06 09:16Core Viewpoint - Haosai has been fined 7 million yuan for unit bribery, with an additional 21.52 million yuan in illegal gains being recovered, further complicating the company's already troubled situation [1] Group 1: Company Governance Issues - The company and its former chairman, Dai Baolin, have been prosecuted for unit bribery, with Dai sentenced to three years in prison, suspended for four years, and fined 3 million yuan [1] - There are significant issues in Haosai's corporate governance, particularly in information disclosure, as the company failed to timely disclose critical events related to Dai Baolin's detention and arrest [1][2] - The Beijing Securities Regulatory Bureau issued a warning to Haosai and its executives for deficiencies in operational norms and internal controls [1][2] Group 2: Financial Performance - Since its establishment, Haosai has focused on technological innovation in smart lighting, cultural tourism, and urban development, but has faced declining performance since its IPO in 2019 [2] - In the year following its listing, the company experienced a significant drop in revenue and net profit, with declines of 48.30% and 80.19% year-on-year, respectively [2] - The company has reported four consecutive years of losses in net profit excluding non-recurring items, with a nearly 30% year-on-year revenue decline in the first three quarters of this year [2] Group 3: Market Sentiment and Future Outlook - Despite a more than 45% increase in stock price this year, the rise is attributed to short-term market sentiment rather than fundamental improvements in the company's performance [2] - The bribery case is likely to severely undermine investor confidence, leading to significant uncertainty regarding the long-term stock price trajectory [2][3] - Immediate actions are required to improve corporate governance, strengthen internal controls, and focus on core business areas to rebuild market confidence [3]