Galaxy Electronics: Subsidiary Tongzhi Electromechanical Found Guilty of Offering Bribery, Sentenced to a Fine of 3 Million Yuan

Galaxy Electronics announced that its wholly-owned subsidiary, Hefei Tongzhi Electromechanical Control Technology Co., Ltd., recently received the court's judgment. Tongzhi Electromechanical was found to have committed the crime of unit bribery and was fined 3 million yuan; the former legal representative Zhang Hong was found guilty of the crime of unit bribery and was sentenced to two years and six months in prison, as well as a fine of 4 million yuan. Based on the judgment, the company believes that the above situation does not involve major illegal activities leading to mandatory delisting. As of the date of this announcement, the company has strengthened internal management in accordance with regulations, adjusted and optimized the internal management team and business operation model of the business sector, and minimized the losses and impacts during the period when Tongzhi Electromechanical is prohibited from purchasing equipment. At the same time, the company will continue to guide Tongzhi Electromechanical in its operations.