The board of directors of Farnova Group Holdings Limited announced that the company has entered into a strategic cooperation agreement with two independent third parties, namely Shenzhen Qianhai Guangdong-Hong Kong Capital Investment Management Co. Ltd. (Guangdong-HK Capital) and Guangdong Guanghao Investment Consulting Co. Ltd. (Guangdong Guanghao) pursuant to which the parties intend to jointly form and manage a fund which shall focus on investments in emerging technology industries primarily including new energy vehicles and related core components, new energy power batteries and related materials, as well as digital new infrastructure fields such as businesses related to the internet of intelligent vehicles, which has been widely applied for transportational wireless communications and information exchange. The Strategic Cooperation Agreement only sets out the preliminary cooperation framework of the parties thereto, and the terms of transactions contemplated thereunder are subject to further agreement(s) and/or arrangement(s) to be entered into by the parties. The Group is principally engaged in the sales of new energy electric vehicles and advertising. As disclosed in the first quarterly report of the Company for the three months ended 30 June 2021, the Group would explore investment opportunities to expedite the development of its new energy electric vehicle business so as to capture the potential growth. Leveraging on the knowledge, network and experience of Guangdong-HK Capital and Guangdong Guangho in respect of other strategic emerging industries and management of funds, the Board is of the view that the entering into of the Strategic Cooperation Agreement represents a business opportunity in furtherance of the Group's new energy electric vehicle business and, subject to formal agreement to be entered into, would enable the Group to tap into the digital new infrastructure fields which would help improve its competitiveness within the vehicle industry, thereby potentially enhancing the earnings of the Group and the returns to the shareholders.