Gelonghui, November 19 | Shengneng Group (02459.HK) announced that the goal of establishing joint ventures and joint ventures with the Huixian government through Huixian Construction is mainly to cooperate to expand the Group's production capacity in China. In view of the changing market and economic environment, the company and Huixian Construction have reached an agreement and decided to amicably and voluntarily terminate the joint venture agreement and dissolve the joint venture. Neither party has the right to claim any loss, damage, or expense from the other party as a result of the termination. The dissolution of the joint venture is subject to approval from the relevant Chinese government departments before it is completed and effective.
It is currently anticipated that the dissolution will be completed within the first quarter of 2025. The Board believes that the termination of the joint venture will not have a significant adverse impact on the Group's financial performance and operations. Despite the termination of the joint venture, the Group remains optimistic about its future long-term business prospects and will continue to pursue its business plans in a prudent manner to gain greater advantages and seize business opportunities as the industry grows.
