On November 28, Golonghui announced that, due to the current competitive environment in the photovoltaic industry and the poor sales and continuous losses of Follett New Energy, in order to align with the company's global strategy direction and reduce operating costs, the company has decided to suspend production and business operations of Follett New Energy in the recent days.
The business operations of Follett New Energy are not the company's main focus. The suspension of production and operations will not have adverse effects on the company's normal production and operation activities or its sustainable operational capabilities. As Follett New Energy is currently in a loss-making state and difficult to turn around in the short term, suspending its operations will reduce the company's operating losses, minimize the negative impact on the company's performance, avoid further significant losses and capital injections from continued production, help lower operating costs, align with the company's global strategy direction, and serve the interests of the company and all shareholders. The specific impact of this suspension on the company's business data will be based on the audited financial reports. Follett New Energy has arranged personnel to handle the related disposal work during the suspension period and signed relevant agreements, properly resettled and reassigned employees, while also managing debt, asset cleanup, and security work. The company will decide on whether to resume production and operation of Follett New Energy based on market conditions, actively seek external cooperation opportunities, fully utilize the remaining asset value, and minimize the impact of Follett New Energy's production suspension as much as possible.
