Subsidiary of Hunan Lead Power Technology Group (300530.SZ) terminates energy storage system equipment contract with a certain customer.

Hunan Lead Power Technology Group (300530.SZ) announced that its wholly-owned subsidiary, Hunan Lead Power Energy Storage Technology Co., Ltd. (Party B), had previously signed a "100MW/200MWh Energy Storage Station Project Energy Storage System Equipment Procurement Contract" with a certain customer (Party A). Due to the failure of Party A's project site land approval procedures and other reasons, the project did not start on schedule and is still at a standstill. Additionally, since the signing of the contract over a year ago, there have been significant changes in the external market environment, with a large drop in the prices of energy storage equipment. Continuing to fulfill the contract would impose a heavier economic burden on Party A than the current market price. However, in order to meet the contractual requirements and fulfill their own obligations, Party B actively purchased raw materials, invested manpower and resources in production, and stocked up according to Party A's requirements after the contract was signed, in order to meet Party A's needs at any time. Party B has already designed and stocked up 10 energy storage devices according to Party A's requirements, which are now idle, with both parties having invested heavily. After friendly negotiations, Party A and Party B have agreed to terminate the original procurement contract and will not continue to perform it.