SINOHYTEC (02402) announced that at the company's fourth board of directors' third meeting held on September 5, 2025, the board reviewed and approved the "Proposal on Terminating the Issuance of Shares for Asset Acquisition and Raising Supporting Funds and Related Party Transaction." The board agreed to terminate the potential transaction and authorized the company's management to handle related termination matters.

Since the initiation of the potential transaction, the company and all relevant parties have actively promoted various aspects of the potential deal and strictly fulfilled information disclosure obligations in accordance with relevant regulations. However, as the transaction parties were unable to reach consensus on the final transaction plan, and in order to effectively protect the interests of the company and investors, the company made the decision to terminate the potential transaction after friendly consultation, careful study, and thorough deliberation with all relevant transaction parties, based on prudent considerations.

The termination of the potential transaction was a decision made after prudent research by the company, along with full communication and friendly consultation with the counterparties. Currently, the company's production and operations are normal. The termination of the potential transaction will not cause significant adverse impact on the company's production, operations, and financial condition, and there are no circumstances that would harm the interests of the company and minority shareholders.