Financial news app Zhitong reported that Kwong Luen Eng (01413) announced that its wholly-owned subsidiary Kwong Luen Network Technology Co., Ltd. (Kwong Luen Network) entered into a memorandum of understanding with Chongqing Yida Trading Enterprise Management Co., Ltd. (Chongqing Yida) on the date of this announcement, intending to establish a joint venture to jointly develop green energy projects in China (joint venture cooperation).

The memorandum of understanding will automatically expire 180 calendar days from the date of signing (or on the earlier date if a formal agreement related to the joint venture cooperation is signed; or on the extended date agreed upon by both parties in writing).

The board of directors believes that entering into the memorandum of understanding will help the group seize opportunities and enter the Chinese market. The joint venture cooperation aligns with the group's long-term development goals and business development strategy, potentially bringing profit growth to the group and serving the overall interests of the company and shareholders.