Core Points - Haosai has been convicted of corporate bribery, resulting in a fine of 7 million yuan, while its former chairman received a three-year prison sentence and a fine of 300,000 yuan [2][4] - The case, which began with a judicial investigation in late 2024, has now reached a first-instance verdict after a series of legal proceedings [3][5] - The penalties imposed represent 3.90% of the company's latest audited net profit attributable to shareholders and 15.90% when combined with confiscated illegal gains [4] Legal and Regulatory Context - The court's ruling is expected to have a significant impact on Haosai, which has previously faced regulatory penalties for failing to disclose information in a timely manner [4][6] - The company has expressed its commitment to improving internal controls and compliance with legal obligations following the judgment [4][8] Management Changes - Following the legal proceedings, there have been significant changes in Haosai's management and control structure, including the resignation of former chairman Dai Baolin and the transfer of voting rights to his son, Dai Congqi [8] - The company has clarified that Dai Baolin is no longer part of the board or management and has ceased to be the controlling shareholder [8] Financial Performance - Haosai, once a leading player in the lighting engineering industry, has seen a decline in performance, with a reported revenue of 265 million yuan in the first three quarters of 2025, a year-on-year decrease of 29.79%, and a net loss of 26.31 million yuan [9] - The company's stock closed at 16.87 yuan per share, with a total market capitalization of 2.537 billion yuan as of November 5 [9][10]