KIDZTECH (06918) plans to establish a joint venture with Xiangxin Technology to set up 1GWh energy storage and 200,000 ton molten salt production line.

KIDZTECH (06918) announced that on July 22, 2025, the company signed a non-legally binding cooperation intention letter with Xiangxin (Shenzhen) Investment Co., Ltd. (Xiangxin Investment) to establish a joint venture. The joint venture will invest in the construction of a storage equipment production line with an annual production capacity of approximately 1GWh, a molten salt (nitrate-based) production line with an annual production capacity of approximately 200,000 tons, and a hazardous chemicals storage warehouse, engaging in the production and sales of such types of molten salt and storage equipment. The joint venture proposes that Xiangxin Investment holds 65% of the shares, the company holds 5% of the shares, and Xiangxin Investment and the company will jointly work to introduce and implement the local government (or its designated party) as the remaining 30% cooperative party. Specific terms of the joint venture cooperation, including registered capital, are subject to further negotiation with the other party and will be determined by a formal joint venture agreement to be entered into by the joint venture parties. The company will mainly be responsible for providing technology, constructing production lines, managing factory operations, and selling products for the storage equipment and molten salt production lines of the joint venture. The announcement stated that by establishing a joint venture with Xiangxin Investment, the Group will be able to accelerate the development of the solar thermal power generation industry, molten salt energy storage technology matrix, and other areas. Based on the above, the Board of Directors believes that signing the cooperation intention letter to establish a joint venture will help the Group's development in the solar thermal power generation industry and molten salt energy storage technology business, enhance the Group's business innovation capabilities, strengthen the Group's ability for continued growth, and be beneficial and in line with the overall interests of the company and its shareholders.