On December 13, Gelonghui reported that Shanghai Morn Electric Equipment (002451.SZ) held the ninth meeting of the sixth Board of Directors and the ninth meeting of the sixth Supervisory Board, where it approved the proposal to terminate the investment in the construction of the dedicated flat electromagnetic wire project for New energy Autos. As of the disclosure date of this announcement, a total of 27.6703 million yuan has been invested in the project (including equipment procurement, site transformation, etc.), accounting for 3.66% of the company's most recent audited net assets.
Since the approval of the investment in the construction of the dedicated flat electromagnetic wire project for New energy Autos, the company has fully promoted the procurement of project equipment, site transformation, and qualification acquisition. However, due to significant changes in the market environment, there is considerable uncertainty in continuing the project. Based on the overall Global Strategy development, the company reassessed the market environment and conducted a comprehensive evaluation of the current positioning and implementation status of the project. It was concluded that the implementation conditions of the project have significantly changed, the gross margin for the project products has sharply declined, and the project can no longer be pursued according to the original planning requirements. To avoid further resource investment waste and reduce potential economic losses while effectively safeguarding the interests of the company and all Shareholders, the company has decided to terminate this project. The production equipment already purchased for this project will be adjusted and transformed for the production of Other Products.
