Facilitates Xinyi Group’s Horizontal Expansion to Capture New Opportunities in Solar Industry and to Become One of the

World's Leading Solar Raw Materials and Key Components Suppliers

(Hong Kong, 17 December 2021) – Xinyi Glass Holdings Limited (“Xinyi Glass”) (stock code: 00868), a leading integrated automobile glass, energy-saving architectural glass and high-quality float glass manufacturer, and Xinyi Solar Holdings Limited (“Xinyi Solar”) (stock code: 00968), the world’s largest solar glass manufacturer, are pleased to announce the establishment of Xinyi Silicon Holdings Limited (“Xinyi Silicon”), with 52% of its shares being held by Xinyi Solar and 48.0% held by Xinyi Glass, respectively. Xinyi Silicon has been formed to engage in the Polysilicon Production Project, which involves the construction of polysilicon production facilities in Qilin District, Qujing City, Yunnan Province, with an estimated annual production capacity of 60,000 tonnes (which may subsequently increase to 200,000 tonnes in several phases) together with up to 10,000 tonnes of white carbon black.

Pursuant to the Joint Venture Agreement, Xinyi Solar and Xinyi Glass have agreed to provide an aggregate maximum funding commitment of RMB3.3 billion (equivalent to approximately

HK$4.0 billion) on a pro rata basis by way of a combination of equity and debts. The maximum funding commitment that Xinyi Solar and Xinyi Glass will provide to Xinyi Silicon will be RMB1.7 billion (equivalent to approximately HK$2.1 billion) and RMB1.6 billion (equivalent to approximately HK$1.9 billion), respectively. The construction of the Polysilicon Production Project is expected to be completed within two years.

Dr. LEE Yin Yee, B.B.S., Chairman of Xinyi Glass and Xinyi Solar, said, “In light of the ongoing global decarbonization efforts and the PRC government’s goal of achieving carbon neutrality by 2060, we believe that the world’s energy will predominantly come from clean energy and renewables in the future, which will lead to a rapid growth in demand. Polysilicon is the key feedstock in the photovoltaic industry and is widely used for the production of conventional solar cells. The formation of Xinyi Silicon will potentially enable Xinyi Group to horizontally expand its new energy business and become one of the world's leading solar raw materials and key components suppliers. Leveraging the strong operational and managerial experience of Xinyi Solar and Xinyi Glass, accumulated from their nationwide manufacturing operations, we believe that Xinyi Silicon can support the Group to better capture enormous business opportunities driven by the robust solar demand.”