The Board of Directors of Genetec Technology Berhad announced that the company had on 11 January 2022 (the "Effective Date") entered into a Memorandum of Understanding ("MOU") with Asia Precision Public Company Limited ("APCS") to jointly collaborate and cooperate to carry out the Project. The Parties wish to collaborate and cooperate to jointly develop a factory automation for energy storage system business in Thailand, conduct research and development and technology exchange, and engage in any other business activities as the Parties may mutually agree (the "Project"). The Parties agree to conduct a feasibility study in relation to the Project, including but not limited to the economic feasibility, financial feasibility, technical feasibility and legal feasibility for the most appropriate structure and details of the Project (the "Project Study").

The Parties agree to exchange any information related to the Project in order to conduct and complete the feasibility study and for this purpose, shall prior to the commencement of any exchange of information execute or cause to be executed a mutual non-disclosure agreement which shall be legally binding and enforceable on the Parties. The Parties fully understand that the purpose of this MOU is to set out the common understanding and intention of the Parties in respect of the Project. If, upon the completion of the Project Study, the Parties are satisfied with the results of the Project Study, the Parties will enter into further negotiations to carry out the Project as a joint venture under a newly incorporated joint venture company under the laws of Thailand for the purpose of engaging in the Project (the "JV Company").

Detailed terms and conditions in relation to the joint venture and the Project shall be negotiated and agreed upon in the definitive Joint Venture Agreement (the "JVA") to be entered into between the Parties.