Beijing Vantone New Development Group Co., Ltd (Stock Code: 600246, Stock Abbreviation: Vantone Development) held a meeting of the Board of Directors and the Supervisory Committee on January 24, 2025 and considered and passed a proposal to terminate the major asset reorganization.

Vantone Development originally planned to purchase 60.16% of the shares of Source Photonics Holdings (Cayman) Limited in cash, but due to changes in the trading environment and failure to reach agreement on some commercial terms, the Company decided to terminate the major asset reorganization.

The termination of the reorganization will not have any material adverse impact on the Company's production and operation and financial position. The Company undertakes not to plan any further major asset reorganization for at least 1 month from the date of disclosure of the termination announcement and will hold an investor briefing on January 27, 2025.

In November 2023, Vantone Development started to be in the process of planning for the purchase of no less than 51% of the controlling interest in Source Photonics Holdings (Cayman) Limited (索尔思光电). Also bidding was Haomei New Material. It took one year to end up with the termination of the acquisition.

Sourse has experienced a number of shareholder changes in recent years, but benefited from the promotion of AI technology, Sourse Optoelectronics revenue and profits have gradually increased. According to the reorganization draft disclosure, in 2022, 2023 and the first four months of 2024, Source realized revenue of 1.501 billion yuan, 1.293 billion yuan and 632 million yuan, respectively, and net attributable profit of 125 million yuan, -16.3807 million yuan and 62.7579 million yuan, respectively.