SANERGY GROUP (02459): Reached an agreement with Huixian Construction, decided to terminate and dissolve the joint venture company.

SANERGY GROUP (02459) announced that it has reached an agreement with the Huixian government to establish a joint venture company in Huixian for the purpose of expanding the group's production capacity in China through cooperation. Due to the constantly changing market and economic environment, the company and Huixian Construction have agreed to amicably and voluntarily terminate the joint venture agreement and dissolve the joint venture company. Neither party has the right to claim any losses, damages, or expenses arising from the termination from the other party. The dissolution of the joint venture company is subject to approval from the relevant government departments in China and is expected to be completed in the first quarter of 2025. The joint venture company is accounted for as a company that is not a wholly-owned subsidiary. However, no individuals have made any contributions or injected any other assets into the joint venture company, and the joint venture company has not yet begun operations since its registration. Therefore, the group will not receive any cash proceeds or incur any significant cash outflows as a result of the dissolution. The board of directors believes that the termination of the joint venture company will not have a significant adverse impact on the financial performance and operations of the group. Despite the termination of the joint venture company, the group remains optimistic about its future long-term business prospects and will continue to pursue its business plans with caution to gain a greater advantage and seize opportunities for growth in the industry.