China Hongguang Holdings Limited has entered into a non-binding memorandum of understanding with Xia Neng Technology (Beijing) Limited. The Company intends to form a strategic partnership with Xia Neng to jointly promote the development of the Building Integrated Photovoltaic ("BIPV") industry in Mainland China, as well as facilitate collaborations on BIPV and new energy projects. Both parties will negotiate on the appropriate company structure to establish a joint venture company, and explore ways to jointly develop a suitable BIPV project in Mainland China, including but not limited to investment in factory construction and merger and acquisitions.

Pursuant to the MOU, the Company has agreed to provide technical support for the development of core components for photovoltaic facade with its excellent coated glass technology, and to leverage its resources in the architectural industry to develop the BIPV market. Xia Neng will provide technical support for BIPV integrated solutions and consolidate regional BIPV industry resources.