The existing procurement and construction contract signed between WISON ENGRG (02236) and the subsidiary of Lukoil will terminate before November 21st.

WISON ENGRG (02236) Announcement: The Board of Directors of the Company has been informed that on October 15, 2025, the UK government implemented restrictive measures against Lukoil Oil Company; and on October 22, 2025, the US Department of the Treasury's Office of Foreign Assets Control has designated Lukoil OAO (Lukoil Oil) and any entity in which Lukoil Oil directly or indirectly, individually or jointly owns 50% or more shares, to the Specially Designated Nationals List. After learning about the sanctions imposed by the UK government and the Office of Foreign Assets Control on Lukoil Oil, the Company immediately took measures to ensure full compliance with applicable laws and regulations, and initiated an internal assessment of any potential impact on the Company. In accordance with the relevant regulations of the Office of Foreign Assets Control, existing procurement and construction contracts between the Group and Limited Liability Company Lukoil-Permnefteorgsinte (an indirect wholly owned subsidiary of Lukoil Oil) will be terminated by November 21, 2025. The total amount receivable under the contract is approximately RMB 8.3 billion. The revenue and gross profit generated by the contract accounted for about 4% and 7.5% of the Group's revenue and gross profit for the six months ended June 30, 2025. According to the Company's preliminary assessment, the termination of this contract will not have a significant adverse impact on the Group's business operations, financial condition, or overall interests of its shareholders. The Group's other business operations remain unaffected. The Company will continue to monitor and follow up on the developments and subsequent events related to this matter, further analyze and evaluate the potential impact on the Company, and implement necessary measures (if feasible).