Cherish Sunshine International Limited (Stock code: 1094) announced that its wholly-owned subsidiary, Shanghai Chengguang Zhongcai Power Development Limited, entered into a joint venture agreement on December 3, 2025, with Shanghai Xinhui Yuanheng Technology Limited. A new company in Shanghai will be established under the laws of the People’s Republic of China to conduct business in photovoltaic equipment, system integration services, and other related areas.

According to the agreement, the new joint venture’s total registered capital is RMB120 million. Shanghai Chengguang Zhongcai Power Development Limited will invest RMB45 million, representing 37.5% of the registered capital. Shanghai Xinhui Yuanheng Technology Limited will contribute RMB75 million, or 62.5%. As a result, Cherish Sunshine International Limited will hold a minority stake of 37.5%, and the joint venture’s financial results will not be consolidated into its financial statements.

The new entity’s business scope spans sales of photovoltaic equipment and components, battery products, intelligent power transmission and distribution equipment, charging piles, integrated circuits, and technology-related services. Both parties plan to leverage technological capabilities, local distribution networks, and international branding to capture market opportunities in China and abroad, accelerating participation in photovoltaic power generation projects and potentially cultivating additional engineering, procurement, and construction services.

The transaction constitutes a discloseable transaction under Chapter 14 of the Listing Rules, as certain applicable percentage ratios exceed 5% but are below 25%, thereby requiring reporting and announcement. Management views the agreement as a strategic move that aligns with the evolving Chinese new energy market and contributes to diversification and sustainable development in the photovoltaic industry.