HONG KONG (AP) — A Hong Kong appeals court on Thursday overturned fraud convictions against former media mogul Jimmy Lai, a rare victory in the prominent activist’s legal battles.

Lai, 78, an outspoken critic of China’s ruling Communist Party who founded the now-defunct Apple Daily, will remain in prison because he was sentenced to 20 years weeks ago after being found guilty in another case brought under a national security law imposed by China.

This came more than five years after he was arrested under the law, which was used for years in a crackdown on many of Hong Kong’s leading activists. His situation has sparked grief over the loss of press freedom in the city and sparked an international outcry, although city authorities insist his case had nothing to do with media independence.

The conviction that was overturned Thursday stemmed from an earlier fraud case in which prosecutors alleged that a consulting company controlled by Lai had used office space that his media business rented for publishing and printing purposes.

Lai was sentenced to five years and nine months in prison in 2022 after being found guilty of two counts of fraud.

Jimmy Lai pauses during an interview in Hong Kong on July 1, 2020. A Hong Kong appeals court on Thursday overturned fraud convictions against Lai, a rare victory in the prominent activist's legal battles.
Jimmy Lai pauses during an interview in Hong Kong on July 1, 2020. A Hong Kong appeals court on Thursday overturned fraud convictions against Lai, a rare victory in the prominent activist’s legal battles.

AP Photo/Vincent Yu, File

A lower court judge found that Lai and his co-defendant Wong Wai-keung had concealed that the company was occupying space and had violated the lease, saying he had used his media organization as a protective shield. It also fined Lai 2 million Hong Kong dollars ($257,000).

The Court of Appeal judges wrote in their ruling that while Apple Daily Printing had breached the terms of the lease by allowing the company to use part of the space, it was under no obligation to disclose its breach. They said that even if he had owed and breached that duty, the same could not be attributed to Lai and Wong as a matter of law.

The trial judge’s “reasoning in concluding that the petitioners were responsible for the cover-up as the prosecution maintained is unsustainable,” they said.

They also ruled that the prosecution had failed to prove beyond a reasonable doubt that the defendants had made false statements, throwing out both the convictions and sentences.

None of the defendants appeared in court.

The ruling could reduce Lai’s total prison sentence. The judges handling Lai’s national security case allowed the two sentences to be served simultaneously for only two years, with the other 18 years to be added after the fraud sentence.

The government said in a statement that the Justice Department would study the sentence thoroughly and consider whether to appeal.

He said that although the Court of Appeal found that breach of contract did not meet the threshold for a fraud conviction, it did not change the fact that Lai had used the office space for illegitimate personal purposes.

The long sentence has raised concerns that he could spend the rest of his life in prison.

Lai’s children have expressed hope that a visit by US President Donald Trump to Beijing could help secure the release of their father, a British citizen. The White House has confirmed that Trump will travel to China from March 31 to April 2 to meet with Chinese leader Xi Jinping.

UK Foreign Secretary Yvette Cooper said Lai was sentenced for exercising his right to freedom of expression and called on Hong Kong authorities to release him on humanitarian grounds.

Chinese and Hong Kong authorities have defended Lai’s sentencing in the national security case, saying it reflects the spirit of the rule of law. They also insisted that the security law is necessary for the stability of the city.