The controlling shareholder and former chairman of Seazen Group, one of China's largest property developers, was sentenced on Wednesday to five years in prison after being convicted him of child molestation.
When Wang Zhenhua was arrested last July, shares in the company and its listed units nosedived. At the time, Seazen Group was China's eighth-largest property developer by sales; it has since slipped to 13th place.
The Putuo District People's Court in Shanghai issued the verdict after a two-day closed-door hearing, according to a statement published on its official WeChat account. Five years is the maximum jail term for child molestation.
Reuters was not able to reach Wang or Seazen Group for comment.
Wang's son, non-executive director Wang Xiaosong, was appointed chairman of Seazen Group's board after his father's arrest last year. Seazen Group's subsidiaries include Seazen Holdings Co Ltd and property management unit S-Enjoy Service Group Co Ltd.
However, Wang Zhenhua continues to hold about 70% of Seazen Group. The 2020 Hurun Global Rich List in March estimated Wang and his son's net worth at around $6.1 billion.
Seazen sold some of its land parcels shortly after Wang's arrest to improve its cash flow amid lenders' worries.