TESSON HOLDINGS (01201) terminated the establishment of the joint venture company.

TESSON HOLDINGS (01201) announced that, due to (i) changes in national new energy policies; and (ii) disagreements between the parties on financial risk control of the joint venture company, the company has terminated the agreement with Aerospace Lithium Battery Technology (Hong Kong) Limited (Aerospace Hong Kong) on March 1, 2025. Both parties agree to terminate the joint venture agreement and be relieved of their respective obligations under the agreement from the date of termination, provided that the company should release Aerospace Hong Kong from the lock-up commitment made to the company in the subscription agreement signed on September 20, 2024. As the joint venture company has not yet commenced operations, it is expected that the termination of the joint venture agreement will not have a significant adverse impact on the financial performance of the group. According to the terms of the termination agreement, the company has agreed to release Aerospace Hong Kong from the lock-up commitment made to the company in the subscription agreement dated September 20, 2024. When the company introduced Aerospace Hong Kong as a new shareholder, the company believed that the subscription reflected Aerospace Hong Kong's confidence in the company's long-term sustainable development and the company's intent to explore potential cooperation and investment opportunities with Aerospace Hong Kong to enhance the company's competitiveness and value to its shareholders. Given that the cooperation did not materialize, the Board of Directors believes that the lock-up commitment contained in the subscription agreement no longer benefits the company, and therefore agrees to release Aerospace Hong Kong from the aforementioned lock-up commitment. Following the unsuccessful cooperation and termination of the joint venture agreement mentioned above, the following will come into effect from March 1, 2025: (i) Yan Haiting resigns as executive director and co-chairman of the board; and (ii) Xu Qian resigns as executive director.