On December 30, Glonghui announced that Fulai Ente (605566.SH) plans to temporarily halt production at its subsidiary Fulai Ente (Jiaxing) New Materials Co., Ltd. (referred to as "Jiaxing New Materials"). Given the current competitive environment in the photovoltaic Industry and the poor sales and continued losses of Jiaxing New Materials itself, the company has decided to temporarily cease production at Jiaxing New Materials from recently to align with the company's Global Strategy direction and also reduce Operation costs. The company will later determine whether to resume production and Operation at Jiaxing New Materials based on market conditions.
Due to the current loss status of Jiaxing New Materials, which makes it difficult to turn around in a short period, the temporary halt in production will reduce the company’s operating losses, lessen its negative impact on the company’s performance, and prevent further production that could lead to larger-scale losses and financial input. This is beneficial for lowering Operation costs, aligns with the company's Global Strategy direction, and is in the interests of both the company and all Shareholders. The specific impact of this temporary halt on Company Business Data will be based on the audited financial report. Jiaxing New Materials has arranged personnel to handle the relevant disposal work during the temporary halt in production and to sign related agreements, ensuring the proper placement and allocation of employees, while also addressing creditor-debtor issues, Asset clearance, and security work. The company will later decide whether to resume production and Operation at Jiaxing New Materials based on market conditions and actively seek external cooperation opportunities to make full use of the remaining value of Assets, thereby reducing the impact of the temporary halt in production as much as possible.
