The board of directors of China Energy Storage Technology Development Limited announced that, on 6 March 2024, the Company entered into a non-legally binding strategic cooperation memorandum of understanding with Mile Green (Thailand) Co. Ltd. (the "MGL (Thailand)''). Under the MOU, the Company and MGL (Thailand) intend to establish a joint venture company (the ``Joint Venture'').

The Joint Venture focus on developing new energy vehicle infrastructure, battery swap product production and a battery swap and charging R&D center and operation centers in Thailand and other Southeast Asian Countries. The Joint Venture will concentrate on both software and hardware facilities, as well as the latest technological advancements. The investment in Joint Venture will not exceed HKD 50 million.

Under the MOU, the Company will purchase MGL brand series of electric vehicles not exceed HKD 50 million and MGL (Thailand) will provide assistance for the operation in Thailand and other Southeast Asian Countries, including leasing and rental arrangement of the electric vehicles. The Group is principally engaged in (i) electronic manufacturing services; (ii) marketing and distribution of communication products; (iii) real estate supply chain services; (iv) assisted reproduction medical technology business; and (v) the securities and other assets investment. The Board and the management of the Company are not only dedicated to developing the Group's existing core businesses but are also actively exploring and deploying new business.

In 2023, the Company intends to vigorously expand the production and sales of new energy storage equipment and supply chain services, energy storage system integration, new energy storage technology and supporting services businesses. The Board is of the view that once the cooperation with MGL (Thailand) is implemented, it will facilitate the expansion of the Company's energy storage technology development business and provide a good opportunity for the Company to focus on new energy vehicles and advancements in battery charging and battery swapping technology. It actively engages in the battery industry and holds an optimistic outlook on the expansive market prospects in Southeast Asia.