In real-world business battles, there are no hackers or cutting-edge technology like in the movies—only the most basic… “Sneaking in” and “secretly filming.”

On March 14, Taizhou‑listed Haizheng Bio‑Materials disclosed an update on a litigation matter: the first‑instance judgment has been rendered in its trade‑secret infringement case, with the company awarded RMB 5 million in damages. The infringer and the relevant persons held accountable have also been prosecuted for criminal liability.

According to the public announcement and the judgment, the incident’s… One of the “main characters,” surnamed Qian, is a supplier to Haizheng Shengcai (and an employee of Walter Company). However, he exploited this position to act as an “inside mole,” providing crucial assistance to Haizheng Shengcai’s competitor, Puli Si.

In April 2024, under the leadership of Qian, Zheng, then deputy general manager of Puli Si, and Ke, an employee of Jinpuri (a subsidiary of Puli Si), donned Walter‑branded work uniforms and disguised themselves to infiltrate the resin production workshop of Hainoer, a wholly owned subsidiary of Haizheng Shengcai. Inside the workshop, Zheng, Ke, and others conducted surveillance and took photographs to gather intelligence on certain production equipment, process flows, and operating parameters at Hainoer, while also stealing auxiliary agents belonging to both Haizheng Shengcai and Hainoer.

Previously disclosed in the announcement, the key figure involved in the case was Zheng, the then‑deputy general manager of Puli Si.

According to the first-instance judgment issued by the People’s Court of Jiaojiang District, Taizhou City, Zhejiang Province, the principal offender, Zheng Moumou, was sentenced to three years and six months’ imprisonment and fined. RMB 300,000; the “inside mole,” Qian Moumou, was sentenced to one year and six months’ imprisonment and fined RMB 150,000.

In terms of civil compensation, Puli Si is required to pay damages. RMB 4.85 million, with Mr. Qian compensating RMB 150,000, for a total of RMB 5 million. Meanwhile, Mr. Zheng, Mr. Qian, and Puli Si were ordered to immediately cease infringing the company’s trade secrets.

The 5-million-yuan compensation is equivalent to roughly half a year’s net profit for the company, yet the market has reacted with relative calm. On the first trading day following the announcement, Haizheng Biomaterials edged up 0.69%, while on the second day it fell 3.05%. Today (March 18), the stock declined 0.55%, closing at 12.63 yuan per share, with a market capitalization of 2.56 billion yuan.

Recently, Haizheng Biomaterials released According to the 2025 preliminary performance report, revenue reached RMB 851 million, up slightly by 0.76% year over year; however, net profit attributable to shareholders was only RMB 9.2133 million, a sharp year-on-year decline of 74.05%.

Haizheng Shengcai stated that this was primarily attributable to market competition, which has put downward pressure on the company’s product selling prices and squeezed gross margins. In addition, a year-on-year decline in interest income and foreign exchange gains led to an increase in financial expenses.