Core Viewpoint - Hanchuan Intelligent has filed a lawsuit against CATL for breach of contract due to delayed payments for equipment, amidst significant financial losses and operational challenges in 2024 [1][3][4]. Financial Performance - In 2024, Hanchuan Intelligent reported revenue of 474 million, a year-on-year decline of 64.61%, and a net loss of 1.103 billion, which far exceeds the cumulative profit of 167 million from 2019 to 2023 [4][11]. - The company experienced a significant increase in impairment losses, totaling approximately 700 million, with inventory impairment of about 550 million and bad debt provisions of 150 million [7][11]. Operational Challenges - Hanchuan Intelligent has faced continuous negative operating cash flow for six years, accumulating a net outflow of 1 billion [11]. - The company has a high debt ratio, which rose to a historical high of 78% by the end of 2024, following a brief decline after a 950 million capital increase in 2023 [15][17]. Management Decisions - Despite the financial difficulties, several key executives received salary increases ranging from 30% to 52%, which has raised concerns in the market [2][17]. - The company has been actively working on debt collection and has formed a special team to address long-term receivables [3][11].