The board of directors (the “Board”) of China Dynamics (Holdings) Limited (the “Company”, together with its subsidiaries, the “Group”) is pleased to announce that on 15 November 2018 (after trading hours), the Company has finalised and signed a non-legally binding strategic cooperation framework agreement (the “Strategic Cooperation Framework Agreement”) with Sinomec Hydrogen Energy Technology Company Limited* (中能源工程集團氫能科技有限公司) (“Sinomec Technology”).
THE STRATEGIC COOPERATION FRAMEWORK AGREEMENT
The principal terms of the Strategic Cooperation Framework Agreement are set out as below:
(1) To cope with the expected launch of 12.5 meters new energy vehicle by the Group in Hong Kong, Sinomec Technology will provide the 100-kilowatt full power metal plate hydrogen fuel cell engine before 15 March 2019;
(2) To cope with the expected launch of new energy vehicle by the Group in the People Republic of China (the “PRC”), Sinomec Technology will provide the graphite plate extended range hydrogen fuel cell engine, including the 40-kilowatt and 60-kilowatt full power hydrogen fuel cell engine before 31 December 2018 for the 8.5 meters and 12.5 meters new energy vehicle, respectively;
(3) Sinomec Technology will be responsible for the mandatory testing of the hydrogen fuel cell battery and the Group will be responsible for the field testing of the new energy vehicle equipped with the hydrogen fuel cell engine;
(4) Sinomec Technology and the Group will negotiate and achieve consensus of the corresponding arrangement for the establishment of hydrogen gas station, including, but not limited to, the location, funding arrangement, maintenance and management, by the end of December 2018;
(5) Sinomec Technology and the Group will further explore the cooperation opportunity in the manufacturing of hydrogen fuel cell engine and new energy vehicle; and
(6) Sinomec Technology and the Group will collaborate in the development and commercialisation of the hydrogen fuel cell engine new energy vehicle in Guangdong-Hong Kong-Macao Greater Bay Area.