In order to expand the application of polymer waterproof materials in the field of roof distributed photovoltaics, further consolidate the company's competitive position in the polymer market, and better implement business development strategies, Canlon Group intends to jointly invest and establish a joint venture company with Zhejiang Liansheng Hezhong New Energy Co., Ltd. (hereinafter referred to as "Liansheng New Energy").

The registered capital of the joint venture company is 80 million yuan, of which Canlon plans to hold 40% of the shares, and Liansheng New Energy plans to hold 60% of the shares. The joint venture company will make full use of the competitive advantages of Canlon in the "full life cycle photovoltaic roof" (CSPV) system, as well as Liansheng New Energy's rich experience in solar photovoltaic power plant development and project operation, to jointly develop rooftop distributed photovoltaic power generation projects.

The two sides of this cooperation will follow the principle of "strategic synergy, complementary advantages, mutual benefit and common development", organically integrate the capital advantages, large-scale operation advantages, market-oriented management, and professional technical advantages of all parties, follow the principle of market-oriented pricing, establish a long-term cooperation mechanism, and promote all-round and multi-level strategic cooperation between the two parties. It is beneficial for Canlon to expand the application scenarios of polymer waterproof materials in roof distributed photovoltaics, improve the company's industrial layout, better expand the market space, and improve the company's comprehensive competitiveness, which has positive strategic significance for the company.