SUNSHINE OIL announced that on May 10, 2026, its wholly-owned subsidiary, Sangxiang Petrochemical (Shanghai) Co., Ltd., has entered into an agreement with independent third party Mr. Chan Kwing Leung to establish a joint venture company named Shenzhen Zhongwang Energy Technology Co., Ltd. in Shenzhen. The joint venture's business scope encompasses the sales of smart heat pumps, as well as investment and operation in distributed geothermal energy projects and energy-saving projects within the Yangtze River Delta and Pearl River Delta regions of mainland China. The primary objective of establishing this joint venture is to accelerate the diversification of the company's business portfolio. Particularly while the company's Canadian project is undergoing maintenance, the new venture is expected to enhance the company's operating revenue and cash flow. The purpose of partnering with Mr. Chan is to leverage his strengths in capital markets and financial channels to develop financing pathways for the joint venture and expedite the implementation and advancement of distributed geothermal and energy-saving projects.