Baofeng Modern International : VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE

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BAOFENG MODERN INTERNATIONAL HOLDINGS COMPANY LIMITED ᘒࢤࣛ֠਷ყછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1121)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

This announcement is made by the board (the "Board") of directors (the "Directors") of Baofeng Modern International Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

As disclosed in the announcements of the 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 is pleased to announce that on 11 March 2021, Xinfeng 2D (Fujian) Material Technology Company Limited*€၅ܔอࢤɚၪҿࣘ߅ҦϞࠢʮ̡("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.

JP-Solar is a subsidiary of GS-Solar and is a large scale heterojunction solar cell manufacturer located in Putin, Fujian Province, China with proven record of the reliability of its manufacturing process technique and equipment and excellent overall performance.

GS-Solar is a leading supplier of high-end photovoltaic equipment and technical service and is principally engaged in the supply of large scale high efficiency solar cell industrialised manufacturing equipment and the research and development, manufacturing, sales and provision of integrated service for whole production line.

To the best of Directors' knowledge, information and belief having made all reasonable enquiries, JP-Solar and GS-Solar and their ultimate beneficial owner(s) are third parties independent of the Company and its connected persons.

*

the English translation of Chinese name or words in this announcement, where indicated, is included for information purpose only, and should not be regarded as the official English translation of such Chinese name or words.

On behalf of the Board

Baofeng Modern International Holdings Company Limited

Leung Tsz Chung

Chairman

Hong Kong, 11 March 2021

As at the date of this announcement, the executive Directors are Mr. Leung Tsz Chung, Mr. Zheng Jingdong and Dr. Xu Zhi; the non-executive Director is Ms. Lin Weihuan; and the independent non-executive Directors are Ms. An Na, Mr. Chen Shaohua and Professor Zhao Jinbao.