On August 5, Guolonghui reported that Wuxi Huadong Heavy Machinery (002685.SZ) held the 14th meeting of the fifth board of directors on August 5, 2024, and approved the proposal on terminating the investment in and constructing the Bozhou annual output of 10GWN type efficient solar cells production base project and cancelling the project company. The board agreed to terminate the investment in and construction of the Bozhou annual production of 10GWN type efficient solar cell production base project (hereinafter referred to as the "investment project"), and cancel the project company Huadong Optoelectronics Technology (Bozhou) Co., Ltd. (hereinafter referred to as "Huadong Optoelectronics (Bozhou)"). The meeting agreed to sign the "Agreement on Termination of Contract" with the Management Committee of Bozhou Wuhu Modern Industrial Park and authorized the company's management and relevant personnel to handle specific matters related to terminating cooperation and canceling project company equity.
Due to the overall decline and sustained low prices in the photovoltaic industry chain and the continuous low prices of solar cells during the contract performance, continuing investment will not achieve the commercial objectives set when the contract was signed. In order to reduce losses in the photovoltaic business, the company plans to terminate the investment in and construction of the Bozhou annual production of 10GWN type efficient solar cell production base project and cancel the project company. After negotiation between the company and the Management Committee of Bozhou Wuhu Modern Industrial Park, the Management Committee of Bozhou Wuhu Modern Industrial Park agrees to terminate the "Investment Contract" signed on July 5, 2023.
