MEIGU Technology Holding Group Limited and (Mongolia State Silicon Mining Co. Ltd. entered into a non-legally binding memorandum of understanding (the "MOU") pursuant to which State Silicon is intended to cooperate with the Group in researching and developing new construction materials of better quality with a more competitive costs by utilising its research ability. 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 RMB1,000,000 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 State Silicon. The MOU does not constitute any legally binding commitment in respect of the Potential Cooperation, save and except that each party agrees to be legally bound by certain confidentiality and termination clauses pursuant to the MOU. The Potential Cooperation is subject to the negotiation and execution of the formal agreement(s) between the relevant parties, if any.