Transaction Overview - The company has approved the transfer of 100% equity of its wholly-owned subsidiary Teltronic, S.A.U. for €75.5 million (approximately RMB 628 million) to Next Gen Critical Comms, S.L. [2][3] - The transaction is based on a discounted cash flow model assessing Teltronic's future value and has been agreed upon by both parties [3][6] - The transaction does not involve related party transactions and does not constitute a major asset restructuring as per regulations [2][3] Financial Impact - The transaction price corresponds to a multiple of 7.12 times the EBITDA for Teltronic for the year 2024 [6] - The company anticipates a pre-tax profit of approximately RMB 80 million from this transaction, which is expected to positively impact the net profit for the fiscal year 2025 [7] - Post-transaction, Teltronic will no longer be included in the company's consolidated financial statements, which will affect the reported revenue and profit [7] Strategic Objectives - The transaction aligns with the company's long-term strategic planning, aimed at improving cash flow, reducing debt ratios, and optimizing asset structure [7] - The company aims to enhance its market position and business layout, particularly in the "AI private network" industry trend [7] - A commercial cooperation agreement has been signed with Teltronic, allowing both companies to leverage each other's strengths in their respective markets [7]

Group 1 - The company expects a net profit of 80 million to 100 million RMB for the current reporting period, representing a decline of 38.42% to 50.74% compared to the same period last year, where the net profit was 162.39 million RMB [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses is expected to be between 70 million and 90 million RMB, down 39.51% to 52.96% from 148.80 million RMB in the previous year [1] - The basic earnings per share are projected to be between 0.0440 RMB and 0.0550 RMB, compared to 0.0893 RMB in the same period last year [1] Group 2 - The decline in overall revenue is attributed to delays in the delivery of overseas projects and a year-on-year decrease in EMS business [1] - The company is focusing on its annual development theme of "Innovation leads, development is the hard truth" and is advancing its comprehensive business layout based on the "2+3+1" product strategy [1] - The company has strategically proposed the "AI private network" development concept, which has led to an increase in sales and R&D expenses compared to the previous year [1] Group 3 - The company reported an improvement in comprehensive gross profit margin year-on-year, along with significant improvements in financial expenses due to optimized debt structure, reduced financing costs, and increased exchange gains [2] - The performance forecast is based on preliminary calculations by the company's finance department and has not been audited by an external auditing firm [2]