Mingguan Xincai: Terminates Investment Agreement for Solar Backsheet and Functional Film Production Base Project.

Mingguan New Materials announced that the company has decided to terminate the investment cooperation agreement for the solar backsheet and functional film production base project signed with the People's Government of Feidong County. The total investment of the project is estimated at 5 billion yuan. Currently, the company is actively cooperating with the Feidong County government to handle the completion inspection of the customized property and other follow-up work. Since the fourth quarter of 2023, there have been signs of overcapacity in the photovoltaic industry, which has intensified price competition in the industrial chain products. The industry is in a period of industrial adjustment, and widespread losses are expected in the photovoltaic industry in 2024 and 2025. Based on a serious analysis of market changes and cautious judgment, the company's management considers that the profitability of photovoltaic encapsulation materials is gradually decreasing due to industry consolidation, and the intensified industry competition in 2025 with no clear signs of improvement in cyclical adjustment. If Mingguan continues to advance the Hefei project, it will inevitably increase the company's overall operating costs.