Wison Engineering terminates Lukoil contract following sanctions

Wison Engineering Services Co. Ltd. announced the termination of a procurement and construction contract with a Lukoil subsidiary by November 21, 2025. This decision follows restrictive measures imposed on PJSC Oil Company Lukoil by the UK government on October 15, 2025, and its designation by the U.S. OFAC on October 22, 2025.

The terminated contract represents a significant financial stake for Wison Engineering, with a total receivable amount of approximately RMB8.3 bn. In the first half of 2025, revenue and gross profit from this contract constituted approximately 4% and 7.5% of the Group's total revenue and gross profit, respectively.

Despite the contract's termination, Wison Engineering’s preliminary assessment indicates no material adverse impact on the Group's business operations, financial position, or shareholder interests. The company assures that its other business operations remain normal and unaffected, and it will continue to monitor the situation, implementing responsive measures as needed.