CHERISH SUN (01094) announced that, as of the date of this announcement, the joint venture company had been established, but none of the contracting parties had paid up any share capital. In view of the recent changes to the photovoltaic industry policies announced by China in early January 2026, the contracting parties consider that proceeding with the photovoltaic inverter business is no longer commercially viable. Consequently, the contracting parties have unanimously agreed to terminate the joint venture agreement and entered into a termination agreement on January 16, 2026 (after trading hours). Following the termination, the joint venture company will be deregistered.

The Board of Directors believes that the termination will not have a significant adverse impact on the financial performance and operations of the Group and is in the overall interests of the Company and its shareholders.