SANERGY Group Limited announced that it has made to the announcement issued by the Company dated 16 May 2023 in relation to the establishment of a joint venture. As disclosed in the Announcement, Sangraf Henan shall contribute 12% of the total capital contribution by way of intellectual properties required for the construction of the Construction Project, with the exact shareholding ratio of each party to be determined and adjusted based on the valuation of the intellectual properties. The valuation of such intellectual properties as appraised by an independent valuer as at 31 May 2023 was approximately RMB 12.05 million, which was equivalent to 12% of the registered capital of the JV Company.

In addition, the JV Company will be a non-wholly owned subsidiary of the Company and thus the financial results of the JV Company will be consolidated into the financial statements of the Group.