Verdict delivered! Founder of Zhaoqi sentenced to 3 years in prison, suspended for 4 years!

Referring back to the previous announcement, Hourse received the "Indictment" from the People's Procuratorate of Xinzhou District, Wuhan City, Hubei Province on August 7 this year. The company and its former Chairman and General Manager, Dai Baolin, have been publicly prosecuted for suspected unit bribery.

The Indictment shows that on December 12, 2024, the Xinzhou District Supervisory Commission of Wuhan City initiated an investigation into Dai Baolin, then Chairman and General Manager, for suspected illegal and criminal activities, and placed him under residential surveillance starting from December 12, 2024.

On April 22, 2025, Dai Baolin was released from detention but was arrested by public security authorities on June 19.

It is worth noting that Haorhsai failed to fulfill its information disclosure obligations in a timely manner during these key nodes from Dai Baolin's detention to his arrest. Haorhsai's "concealment" of the above major events ultimately triggered regulatory intervention.

On August 19, the Beijing Securities Regulatory Bureau issued warning letters as an administrative regulatory measure to Hourse and its senior executives, including Dai Baolin and current Chairman Dai Congqi, pointing out deficiencies in standardized operations and internal controls within the company.

On the evening of November 5, Hourse announced the latest progress on this matter. The announcement shows that the Xinzhou District People's Court of Wuhan City, Hubei Province, legally tried this case and concluded the trial recently; the company has received the criminal judgment from the Xinzhou District People's Court of Wuhan City, Hubei Province.

According to the judgment, the defendant unit Haorui Company committed the crime of offering bribes by a unit and was sentenced to a fine of RMB 7 million (fine paid); defendant Dai Baolin committed the crime of offering bribes by a unit, was sentenced to three years of fixed-term imprisonment with a four-year probation period, and fined RMB 3 million (fine paid); additionally, the illegally gained income of approximately RMB 21.52 million returned by Haorui Company and seized by the Wuhan City Xinzhou District Supervisory Commission shall be recovered and turned over to the state treasury.

The announcement shows that the company was fined and ordered to return illegal gains totaling approximately 28.5161 million CNY, accounting for 15.90% of the absolute value of the net profit attributable to shareholders of the parent company in the most recent audited period. The company stated it will handle the accounting treatment in accordance with relevant accounting standards; the specific impact on current or future profits will be subject to confirmation by the audit firm.

It is worth noting that the company stated in its announcement that, based on preliminary assessment, this judgment does not trigger the relevant provisions regarding mandatory delisting for major illegal acts stipulated in the "Shenzhen Stock Exchange Listing Rules".

Hourse also apologized for this matter and stated that it will further strengthen internal controls and standardized operations, continuously improving the quality of information disclosure.

Public records show that Dai Baolin, born in 1965, is the founder of Haoruisai. His pre-tax annual salary in 2024 was 1.2052 million yuan. In June 2025, Dai Baolin resigned from his position as chairman and other roles due to "reaching the statutory retirement age." Subsequently, the company elected his son, Dai Congqi (male, born in 1989), as the new chairman. This personnel change coincided closely in timing with the progress of the case, sparking initial market skepticism.

Data shows that Hourse Technology Group Co., Ltd.'s main business is lighting engineering construction, along with related lighting engineering design, R&D, and lighting product sales. The company's main products are Smart Light Art, Smart Cultural Tourism, and Smart City Domain. It was once a benchmark enterprise in the lighting engineering industry, undertaking lighting projects for 53 landmark buildings including the Shanghai Tower and Beijing CITIC Tower.

When listed on the Shenzhen Stock Exchange in 2019, the company's revenue and net profit reached historical highs of 1.157 billion yuan and 216 million yuan, respectively.

However, in recent years, Hourse's performance has long since lost its former glory. Historical data shows that from 2021 to 2024, the company's performance fluctuated sharply: net profit attributable to shareholders of the listed company was 0.13 billion yuan, -1.56 billion yuan, 0.18 billion yuan, and -1.79 billion yuan respectively. According to the 2025 interim report, lighting engineering construction business accounted for as high as 96.93% of revenue, while lighting engineering design business accounted for only 0.42%.

豪尔赛最新业绩报告显示，2025年前三季度实现营业收入2.65亿元，同比下滑29.79%；净利润亏损0.26亿元，尽管第三季度实现营收1.07亿元（同比增长31.34%）、净利润740万元（同比扭亏），但未能扭转整体颓势。

Regarding the reasons for performance changes, Hourse explained that it was mainly affected by adjustments in the investment pace of infrastructure and real estate sectors, leading to phased fluctuations in demand for the lighting engineering industry and a reduction in large-scale project orders; meanwhile, intensified industry competition, rising costs, and a decline in profit margins occurred; additionally, extended payment cycles from some clients resulted in increased credit and asset impairment provisions.

In addition, the company changed its business scope in May 2025, adding operations such as "operation of charging infrastructure for electric vehicles". It plans to seek new growth points through the new energy sector "Haoneng Hui" . However, the fines and returned funds from this bribery case may further exacerbate its cash flow pressure.

Conclusion