Group 1 - The company has not yet applied its products and technologies in the mechanical parts of China's nuclear fusion devices [2]

Core Viewpoint - The court's second-instance ruling requires Shenzhen Genesis Machinery Co., Ltd. to pay approximately CNY 382 million in damages to Beijing Jingdiao Technology Group Co., Ltd. due to a technology secret infringement case [1][2]. Legal Proceedings - In November 2019, Beijing Jingdiao filed a lawsuit against Tian and Shenzhen Genesis for allegedly infringing on its trade secrets after Tian joined Shenzhen Genesis [2]. - The initial compensation claim was CNY 92 million, which was later increased to CNY 382 million in February 2022 [2]. - The first-instance ruling in May 2023 ordered Shenzhen Genesis and Tian to pay CNY 12.3 million in damages, which was contested by all parties involved [2]. Financial Impact - The company has already set aside CNY 14 million as a provision for this lawsuit based on the first-instance ruling [2]. - The second-instance ruling is expected to impact the company's net profit by approximately CNY 279 million [2]. - The company has sufficient liquidity, with cash and cash equivalents of approximately CNY 600 million and trading financial assets of about CNY 552 million as of September 30, 2025 [3]. Business Operations - The company asserts that it does not use the disputed patents for its machine tool products, and its overall business operations remain normal [3]. - The ruling is not expected to affect the production and sales of other products, indicating a minimal impact on the company's ongoing operations [3]. Market Performance - As of December 26, the company's stock price closed at CNY 9.8 per share, with a market capitalization of CNY 16.32 billion, reflecting a year-to-date increase of 50.54% [4].

Core Viewpoint - The actual controller of *ST Haihua, Wang Feng, is planning a significant share transfer that may lead to a change in the company's control, with the new controlling shareholders being Zhang Jiayang, Zhan Shundi, and Zhang Dong [1][7]. Group 1: Share Transfer and Control Change - On October 17, *ST Haihua announced that Wang Feng is planning a major share transfer, which could result in a change of control of the company [1][6]. - After the completion of this equity change, the controlling shareholder will shift from Qinghai Heavy Machinery Co., Ltd. to Langning Yihe (Hangzhou) Enterprise Management Partnership (Limited Partnership) [1][7]. - The company’s actual controllers will change from Wang Feng to Zhang Jiayang, Zhan Shundi, and Zhang Dong [1][7]. Group 2: Stock Suspension and Resumption - The company's stock was suspended from trading on October 13 due to the ongoing negotiations regarding the control change [6][7]. - The stock is set to resume trading on October 20 [2][3]. Group 3: Financial Performance - In the first half of 2025, *ST Haihua reported an operating revenue of 113 million yuan and a net loss of 2.1771 million yuan, with a deductive net profit loss of 5.1115 million yuan [8]. - The company faced losses due to market competition affecting the natural gas business's gross margin, high costs from new product trials in the gear business, and fixed asset depreciation [8].