Core Viewpoint - The company has decided to terminate the investment in the solar backsheet and functional film production base project in Feidong, originally planned with a total investment of 5 billion yuan, due to industry overcapacity and intensified price competition [1] Group 1: Project Termination - The termination of the Feidong project was reached through friendly negotiations with the Feidong government [1] - The company has already invested approximately 1.6341 million yuan in the project, which was signed in 2023 and planned to be constructed in two phases [1] - The first phase of the project’s infrastructure is nearly completed, but equipment installation has not yet begun [1] Group 2: Capacity Adjustment - The company plans to shift the equivalent capacity to the Yichun Economic and Technological Development Zone, where the first phase will produce 350 million square meters of new battery packaging special functional film with a total investment of 290 million yuan [1] - The first phase project has already commenced construction, utilizing existing infrastructure to save on investment and shorten the project timeline [1] - A second phase project is planned to produce 150 million square meters of new battery packaging special functional film, which will be initiated based on market demand after the first phase is completed [1] Group 3: Business Impact - The company asserts that the termination of the Feidong project is a prudent decision that will not significantly impact existing business operations and development [1] - This decision is expected to enhance the efficiency of capital utilization [1]