Galaxy Electronics: Subsidiary Tongzhi Mechanical and Electrical Convicted of Bribery and Fined 3 Million Yuan

Galaxy Electronics Announcement: The company’s wholly-owned subsidiary, Hefei Tongzhi Mechanical and Electrical Control Technology Co., Ltd., recently received the court’s verdict. Tongzhi Mechanical and Electrical was convicted of bribery by an entity and fined 3 million yuan; the former legal representative, Zhang Hong, was convicted of bribery by an entity and sentenced to two years and six months in prison, with a fine of 4 million yuan. Based on the verdict, the company believes that the above circumstances do not involve major illegal violations that would trigger mandatory delisting. As of the date of this announcement, the company has strengthened internal management in accordance with system requirements, adjusted and optimized the internal management team and business operation model of this business segment, and minimized losses and impacts during Tongzhi Mechanical and Electrical’s period of disqualification from equipment procurement qualifications. Meanwhile, the company will continue to guide Tongzhi Mechanical and Electrical to carry out various operational tasks.