HES(SZ:002963) Chang Jiang Shang Bao·2025-11-26 09:12Core Viewpoint - The company Haosai (002963.SZ) is facing severe challenges due to high judicial risks and ongoing operational losses, compounded by recent legal issues and regulatory scrutiny [1][2]. Legal Issues - Haosai has been under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, leading to a formal case being opened against the company [2][4]. - The company was fined 7 million yuan for unit bribery, and its former chairman, Dai Baolin, received a three-year prison sentence with a four-year probation and a fine of 3 million yuan [2][5]. - The CSRC issued a warning to Haosai in August for failing to disclose the investigation into the bribery case, highlighting deficiencies in corporate governance and internal controls [2][9]. Management Changes - Dai Baolin resigned as chairman just before his arrest, citing retirement age, and transferred his voting rights to his son, Dai Congqi, marking a change in control amid ongoing legal troubles [5][7]. - The new leadership under Dai Congqi faces significant challenges, including unresolved lawsuits, regulatory investigations, and declining performance [3][7]. Financial Performance - Haosai has experienced a dramatic decline in financial performance since 2020, with cumulative net losses of 365 million yuan over the past five years, particularly in the non-recurring profit category [8][9]. - For the first three quarters of 2025, the company reported a revenue of 265 million yuan, a year-on-year decrease of 29.79%, and a net loss of 26.31 million yuan, a staggering decline of 523.96% [8][9]. - The company attributes its financial struggles to fluctuations in demand within the lighting engineering sector, intensified competition, rising costs, and extended customer payment cycles [8].