The board of directors of Baofeng Modern International Holdings Company Limited announced that Company dated 25 and 29 January 2021, the research and development team of the Group successfully developed a new technique to utilize mono- cast wafers to manufacture high efficiency Heterojunction with Intrinsic Thinlayer ("HJT") cells (with conversion efficiency > 24.0%) in September 2020. With the use of casting silicon furnaces and the new technique of the Group in manufacturing high efficiency HJT cells, it is expected that large size cast monocrystalline silicon would be produced in the future and the Group will become a supplier of low cost, high efficiency silicon wafers. To facilitate the application of cast monocrystalline silicon techniques in heterojunction solar cells, the Board announced that on 11 March 2021, Xinfeng 2D (Fujian) Material Technology Company Limited*("Xinfeng 2D"), an indirect wholly-owned subsidiary of the Company, entered into (i) a framework plant and equipment lease agreement (the "Lease Agreement") with JP-Solar Power (Fujian) Company Ltd. ("JP-Solar") in respect of the lease of a plant located in Putian, Fujian Province, China and all relevant equipment of the production line for 500MW high efficiency heterojunction solar cells free of charge for a trial period of 6 months from 11 March 2021 to 10 September 2021 (the "Trial Period"); and (ii) a license letter of intent (the "License LOI") with GS-Solar (Fujian) Company Limited ("GS-Solar"), pursuant to which Xinfeng 2D is authorised to use the patents and process technique in relation to heterojunction solar cells owned by GS-Solar without any license fee for the Trial Period. After the Trial Period, Xinfeng 2D may enter into formal lease agreement and license agreement with JP-Solar and GS-Solar respectively if the cooperation results are satisfactory. The entering into of the Lease Agreement and the License LOI will enable the Group to integrate its patented technique in cast monocrystalline silicon with the patented technique in heterojunction solar cells owned by GS-Solar and to manufacture heterojunction solar cells using JP-Solar's production line. The Board considers that the terms of the Lease Agreement and the License LOI are fair and reasonable and in the interests of the Company and its shareholders as a whole. The Group will also further cooperate with GS-Solar to advance the development of the photovoltaic industry.