The board of directors of AVIC International Holdings Limited announced that on 12 August 2019 (i) Xiamen Torch Hi-tech Industry Development Zone Management Committee ("Xiamen Torch Committee"); (ii) Tian Ma Microelectronics Company Limited ("Tian Ma"); and (iii) Xiamen Tian Ma Microelectronics Company Limited ("Xiamen Tian Ma") entered into the Investment Cooperation Framework Agreement (the "Framework Agreement") in relation to the production line construction project (the "Production Line Project") for the 6th Generation Soft Active-matrix Organic Light-emitting Diode ("AMOLED"). Pursuant to the Framework Agreement, it is agreed that subject to the approvals by the respective decision-making authorities of the parties (which includes the board of directors and the shareholders (if necessary) of each of Tian Ma and the Company, etc) and the relevant governmental administrative department as required by the applicable laws and regulations (if necessary), Xiamen Tian Ma and a party to be nominated by Xiamen Municipal Government (the "Nominated Investor") shall establish a joint venture company (the "JV Company") in the People's Republic of China (the "PRC") for carrying out the Production Line Project in Xiamen. The total investment amount of the Production Line Project is estimated to be not more than RMB 48 billion, which comprises: (i) the registered capital of the JV Company in the estimated amount of RMB 27 billion, which shall be contributed by the Nominated Investor and Xiamen Tian Ma as to 85% and 15%, respectively; and (ii) an investment amount of RMB 21 billion to be self-financed by the JV Company by way of bank loans.

The Framework Agreement intends to set out the outline of the cooperation on the Production Line Project, and the parties will base on such outline further negotiate on the feasibility of the formation of the JV Company and their respective rights and obligations under the Production Line Project; and enter into a formal agreement (the "Formal Agreement") in relation to the formation of the JV Company pursuant to the results of the negotiation.