CHERISH SUN (01094) announced that on December 3, 2025, its wholly-owned subsidiary, Cheng Guang Zhong Cai, entered into a joint venture agreement with Xin Hui Yuan Heng to establish a joint venture company. According to the agreement, the joint venture's registered capital will be RMB 120 million. Cheng Guang Zhong Cai will contribute RMB 45 million (approximately HKD 49.5 million), representing 37.5% of the registered capital, while Xin Hui Yuan Heng will invest the remaining RMB 75 million (approximately HKD 82.5 million), holding a 62.5% stake. As a result, Cheng Guang Zhong Cai will be a minority shareholder, and the joint venture's financial performance will not be consolidated into CHERISH SUN's financial statements.
The joint venture's primary business will include photovoltaic equipment and component sales, information system integration services, photovoltaic power generation equipment leasing, battery sales, smart power distribution and control equipment sales, power electronic component sales, charging pile sales, integrated circuit sales, as well as technical services, development, consulting, exchange, transfer, and promotion.
As disclosed in CHERISH SUN's interim results for the period ended September 30, 2025, the group is actively seeking new business opportunities to support future growth, including exploring the photovoltaic inverter business in China, leveraging its deep understanding and long-term experience in the new energy sector. Through the joint venture with Xin Hui Yuan Heng, the group aims to quickly enter the core market, utilizing Xin Hui Yuan Heng's technical expertise and market network to capture domestic substitution and overseas export opportunities in the photovoltaic inverter sector. The joint venture will leverage Xin Hui Yuan Heng's local sales network for distributed photovoltaic projects in China while combining CHERISH SUN's international brand influence and overseas distribution channels to achieve dual-market expansion ("domestic + overseas"). Additionally, the collaboration will integrate both parties' patented technologies and utilize Xin Hui Yuan Heng's mature production lines and supply chain resources to reduce manufacturing costs and capacity-building investments.
CHERISH SUN is committed to promoting sustainability and environmental protection. In response to China's national goals of achieving carbon peak by 2030 and carbon neutrality by 2060, the group provides energy management contracting services to support these initiatives. Given its years of involvement in solar power projects, the group's management believes that investing in the joint venture will not only enhance its technical capabilities but also create synergies by introducing more engineering, procurement, and construction (EPC) opportunities, particularly in photovoltaic power generation projects.
The management views this minority investment as a strategic opportunity to enter the promising and fast-growing photovoltaic inverter industry while expanding its market share in the new energy sector (e.g., solar), where it has been active through EPC services. This move aligns with the group's adaptation to macroeconomic structural changes and the upcoming era of "future industries."