Crown Advanced Material (688560.SH) terminates investment agreement with CECEP Solar Energy for backsheet and functional film production base project.

Crown Advanced Material (688560.SH) announced that the board of directors has agreed to terminate the investment and construction of the CECEP Solar Energy backsheet and functional film production base project in Feidong County. This proposal still needs to be approved by the company's shareholders' meeting. The announcement stated that, based on a careful analysis and thoughtful judgment of market changes, the company's management considered the decreasing profitability of photovoltaic encapsulation materials due to industry consolidation. Additionally, with the industry competition intensifying and periodic adjustments not showing clear improvement by 2025, pushing ahead with the Ming Crown Hefei project would inevitably increase the company's overall operating costs. In the fourth quarter of 2025, the company and the Feidong County People's Government reached a friendly agreement. After obtaining Feidong County government's clear consent to terminate the agreement, and both parties agreeing not to claim rights or pursue responsibilities against each other, the company decided to halt the progress of the Ming Crown Hefei backsheets, adhesive film, and functional film project.