The Board of Xinyi Electric Storage Holdings Limited announced that on 7 April 2021 (after trading hours), the Joint Venture Agreement has been entered into for the establishment of the JV Company. Pursuant to the terms of the Joint Venture Agreement, Xinyi Investment (Suzhou) will make cash contribution of RMB30.0 million to the JV Company and Shenzhen Boneng will contribute certain assets consisting of the Patented Technology, the Production Technologies as well as its existing production equipment and inventories with the total value of RMB9.6 million to the JV Company. Upon completion of the establishment of the JV Company, it will be owned as to 68.0% by Xinyi Investment (Suzhou) and 32.0% by Shenzhen Boneng, respectively, with registered capital of RMB30.0 million and capital reserve of RMB 9.6 million. The JV Company will be a non-wholly owned subsidiary of the Company.