HOYA Corporation executed a joint venture agreement with a division of the BOE Group (Beijing BOE Vision Electronic Technology Co. Ltd.)("BOE"), to initiate the formation of a joint venture company in China. The joint venture will involve Flat Panel Display (FPD) business unit. Together with BOE, the company plan to establish a joint venture company, the completion of which is subject to the occurrence of certain activities and conditions, including the execution of various ancillary and supporting agreements and the obtaining of legal and regulatory clearances with Chinese and other relevant jurisdictional authorities. Purpose of Incorporation of Joint Venture Company: Demand for FPD photomasks, which are essential components for the manufacture of LCDs/OLEDs for TVs, smartphones, PCs, etc., is expected to increase as the medium-to long-term panel market in the Chinese market grows. Accordingly, the company have decided to pursue a FPD joint venture in China with BOE, a major Chinese panel manufacturer, with the intention to enhance the manufacturing production capacity of FPD photomasks in China.