MEIGU Technology Holding Group Limited entered into a non-legally binding memorandum of understanding (the "MOU") pursuant to which Zhangwu State Silicon is intended to cooperate with the Group in researching and developing special industry building materials of better quality with a more competitive costs by utilizing 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 . 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 Zhangwu State Silicon.