Unless otherwise stated, abbreviations and definitions used throughout this announcement shall be the same as those previously defined in the previous announcement dated 24 March 2021 in relation to the MOU.

Reference is made to the Company’s announcement released on 24 March 2021 on the Memorandum of Understanding between HWGB EV Sdn Bhd, Ho Wah Genting Berhad and Beijing Aitou Capital Management Ltd (“MOU”).

The Company would like to provide the following additional information:

1. HWGB is venturing into assembly and distribution of electric vehicle in Malaysia to tap into the new trending market of electric vehicle consumer segment, the new era of living lifestyle towards higher technologies usage and energy saving and to create another stream of revenue to the Group.  In addition, it also helps to encourage and promote greener and environmentally friendly products.

2. The assembling and distribution of electric vehicle in Malaysia will require the following approvals from:

a. Ministry of International Trade and Industry (MITI)

b. Malaysian Investment Development Authority (MIDA)

c. Royal Malaysian Customs Department (RMCD) 

d. Jabatan Pengangkutan Jalan Malaysia (JPJ)

However, the Group has not applied for any approval in Malaysia until the execution of the definitive agreement and completion of feasibility study on the Project.

3. The issued shares capital of AITOU is RMB 10,700,000.

4. AITOU is focused on investing in early-stage technology start-ups and new business start-ups and has yet to invest in electric vehicles industry.

5. The financial commitment required by the Group to venture into the electric vehicle cannot be ascertained at the moment until a definitive agreement is entered and relevant authorities’ approvals are obtained.

6. The Group entered into various MOUs with different party for the venture into electric vehicle business as each of the party produce different type of electric vehicle.  Seiyong Motor produces electric vehicles for consumer use whereas Xiamen Chief produces electric vehicles that are commercial base i.e. electric tour buses, shuttle bus, track car, golf buggy cars, food truck, logistics distribution vehicle, patrol car and others. AITOU is an investment company which involves in project services such as participation in the formulation of strategies and business plan, assistance in follow-up financing, assistance in expanding upstream and downstream channels and daily operational management.

This announcement is dated 26 March 2021.