Core Viewpoint - The company Xidiwei (688173.SH) faces potential loss of control over its subsidiary Zinitix due to alleged misconduct by current directors, which could significantly impact its financial performance and reporting [1][4]. Group 1: Acquisition and Control Issues - Xidiwei acquired a 35.31% stake in Zinitix for approximately 1.12 million RMB in August 2024, forming a goodwill of 0.64 million RMB [2][5]. - The company has initiated legal actions against Zinitix's current directors for alleged theft of trade secrets and other misconduct, while facing resistance in convening a shareholder meeting to elect new directors [4][6]. - If Xidiwei loses control over Zinitix, it will cease to consolidate Zinitix in its financial statements, leading to a potential significant adverse impact on its 2025 financial results [4]. Group 2: Financial Performance and Challenges - Xidiwei has reported cumulative losses of approximately 3.6 million RMB over the past three years, with continued losses expected in Q1 2025 [1][8]. - Despite the losses, the chairman's salary has increased significantly, from approximately 1.6 million RMB in 2021 to over 2.2 million RMB in subsequent years [8]. - The company has been actively pursuing acquisitions to turn around its performance, including a recent announcement to acquire Chengxin Micro for a premium of 214.37% [8]. Group 3: Research and Development Investment - Xidiwei has consistently increased its R&D investment from 1.5 million RMB in 2021 to 2.53 million RMB in 2024, with R&D expenses accounting for 46.34% of its revenue in 2024 [9].