Core Viewpoint - Galaxy Electronics' subsidiary, Hefei Tongzhi Electromechanical Control Technology Co., Ltd., is facing criminal charges for alleged bribery, which adds to the company's existing financial troubles and regulatory issues [1][4]. Group 1: Company Issues - The subsidiary, Tongzhi Electromechanical, has been banned from participating in military equipment procurement for 36 months due to previous violations [1]. - Galaxy Electronics reported a net loss of approximately 685 million yuan for 2024, a decrease of 466.46% year-on-year, primarily due to the impact of contract price audits on its subsidiary [4]. - The company has received a qualified audit opinion from its auditor, indicating ongoing investigations into its financial practices [4]. Group 2: Financial Impact - As of the end of last year, Tongzhi Electromechanical has submitted contract price refunds totaling 367 million yuan, with 220 million yuan in bank structured deposits being restricted [4]. - Galaxy Electronics expects a net loss of between 26 million and 32 million yuan for the first half of 2025, attributing this to reduced new orders and delayed revenue recognition [5]. - The company has adjusted its 2024 revenue by approximately 518 million yuan due to the aforementioned issues, including tax adjustments and impairment provisions [5].

Core Viewpoint - The company, Jiangsu Galaxy Electronics Co., Ltd., reported significant financial losses for the year 2024, with a net profit of -684,917,196.70 yuan, leading to a decision not to distribute dividends or issue new shares [44][47][48]. Company Overview - Jiangsu Galaxy Electronics is a specialized enterprise group focusing on new energy, artificial intelligence, and intelligent electromechanical businesses, with products including smart special equipment, energy storage, charging piles, and intelligent terminals [5][8]. - The company has established multiple R&D centers in various locations, including Zhangjiagang, Nanjing, and Hefei, to support its long-term research in specialized equipment and new energy solutions [5]. Financial Performance - The company reported total operating revenue of 528,827,182.64 yuan and total operating costs of 796,117,823.78 yuan for 2024, resulting in an operating loss of -674,712,843.73 yuan [14][16]. - The company incurred a net loss of -687,791,004.13 yuan for the year, with earnings per share reported at -0.61 yuan [14][16]. Profit Distribution Plan - The board of directors has proposed not to distribute cash dividends, issue bonus shares, or increase capital reserves due to negative retained earnings [44][47][48]. - As of December 31, 2024, the cumulative distributable profits for both the consolidated and parent company reports were negative, amounting to -599,411,502.73 yuan and -820,365,378.78 yuan, respectively [44][47][48]. Asset Impairment - The company has recognized an asset impairment loss totaling -24,914.45 million yuan for 2024, which includes provisions for bad debts and inventory write-downs [29][41]. - Specific impairments include -9,986.19 million yuan for goodwill and -6,803.08 million yuan for other assets due to ongoing investigations affecting the subsidiary Tongzhi Electromechanical [29][41][60]. Future Outlook - The company plans to apply for a comprehensive credit limit of up to 1.54 billion yuan to support its operational needs in 2025 [20]. - The management remains optimistic about the recovery of business operations, with an increase in orders despite the ongoing investigations [60].