The board of directors of the HG Semiconductor Limited announced that on 7 September 2022, the Company entered into a strategic cooperation framework agreement with Golden Concord Group Limited a company ultimately held under a discretionary trust with the Investor and his family members as beneficiaries, to start their long term strategic cooperation. Pursuant to the Strategic Cooperation Framework Agreement, the Company and the Cooperating Party intend to initiate close cooperation in application of gallium nitride power chips in the field of new energy, including (i) the Cooperating Party or its subsidiaries will invest in the equity of the Company or the Company's subsidiaries to establish in-depth cooperation; (ii) the Parties will establish a domestic new energy joint venture to tap into the application of GaN chips in the field of new energy, including but not limited to technologies and equipment on charging/exchanging batteries, energy storage technology and related equipment, and distributed solar inverters; (iii) the Company will provide technical support to the JV Company and jointly develop application products based on silicon-based power chips and third- generation semiconductors; and (iv) the Cooperating Party will assist the Company and the JV Company to enter into the market of new energy industry supply chain based on its leading position and comprehensive layout in the new energy industry.