The board (the "Board") of directors (the "Director(s)") of the Yunhong Guixin Group Holdings Limited announced that on 28 April 2022, the Company and (Wuxue City Investment Mining Co. Ltd.) ("Wuxue City Investment") entered into a non-legally binding memorandum of understanding (the "MOU") pursuant to which Wuxue City Investment is intended to cooperate with the Group in using its own researching and developing capabilities and operating experience to carry out the mining, processing or sales of building materials (such as limestone, marble, calcium carbonate). The aforementioned proposed cooperation between the parties takes in the form of, including but not limited to, establishing a joint venture company or commissioned research and development (the "Potential Cooperation").

It is expected that the Group will invest not more than RMB 1,000,000 in the Potential Cooperation in the first year and the amount to be invested in the second year will be based on the results of the Potential Cooperation in the first year and to be determined by the Board and the board of directors of Wuxue City Investment. The Group is an established and leading manufacturer in the People's Republic of China (the "PRC") engaged in the research and development, production and sale of a variety of fiberglass reinforced plastic ("FRP") grating products. The Group's major products consist of: (i) FRP grating products; (ii) phenolic grating products; and (iii) epoxy wedge strip products.