WISON ENGRG (02236) announced that its board has been informed of restrictive measures imposed by the UK government on Lukoil PJSC on October 15, 2025. Additionally, on October 22, 2025, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) added Lukoil OAO and any entities directly or indirectly owned 50% or more by Lukoil to the Specially Designated Nationals List.

Upon learning of the sanctions, the company immediately took steps to ensure full compliance with applicable laws and regulations and initiated an internal assessment of any potential impacts. In accordance with OFAC's requirements, the group's existing procurement and construction contract with Limited Liability Company Lukoil-Permnefteorgsintez (an indirect wholly-owned subsidiary of Lukoil) will be terminated by November 21, 2025.

The total receivable under the contract amounts to approximately RMB 8.3 billion. Revenue and gross profit generated from this contract accounted for about 4% and 7.5%, respectively, of the group's total revenue and gross profit for the six months ended June 30, 2025.

Based on preliminary assessments, the termination is not expected to have a material adverse impact on the group's business operations, financial condition, or the overall interests of its shareholders. The group's other business operations remain unaffected and continue as usual.

WISON ENGRG will continue to monitor developments, analyze potential implications, and implement appropriate measures as necessary.