Feiyang Group (01901.HK) announced that on May 13, 2022, the company and Fufa Industrial Co., Ltd. entered into a non-legally binding memorandum of understanding on the proposed establishment of a joint venture company.

The purpose of the proposed joint venture company is to provide meta-universe platform in China and to invest in Liuzhou Feiyang Yuan Universe Science and Technology City and Weifang Feiyang Yuan Universe Science and Technology City.

Under any formal joint venture agreement, the company (or its wholly-owned subsidiaries) and Fufa Industries will promote the establishment of a new limited company, which will be owned by the company (or its wholly-owned subsidiaries) and Fufa Industries by 51% and 49% respectively, and the total amount of capital contribution proposed by the parties shall not exceed RMB 148 million.