Tongwei Co., Ltd. Statement on Involvement in Patent Infringement Litigation of Subsidiaries

2023-06-20

Recently, Tongwei Solar (Hefei) Co., Ltd., a subsidiary of Tongwei Co., Ltd. (the "Company"), and its secondary subsidiary, TONGWEI SOLAR (GERMANY) GmbH, were served with process by a German district court for a lawsuit initiated by Maxeon Solar Pte. Ltd. ("Maxeon ") alleging being infringed a European patent regarding a particular type of the Company's Shingled Solar Cell Module products, claiming an amount of EUR 1 million. As shareholder of Maxeon Solar Technologies, Ltd., and the parent company of the Maxeon, TCL Zhonghuan Renewable Energy Technology Co.,Ltd. ("TZE") disclosed the “Indicative Announcement regarding Assertion of Intellectual Property Rights”on June 15, 2023. After preliminary collection and analysis of the relevant information, the Company hereby states as follows:

1. As a global leader in PV industry, the Company has developed a competitive advantage in multiple segments of industry chain such as high-purity crystalline silicon, solar cells, and PV modules. The Company highly values its brand and reputation. It attaches great importance to the establishment and maintenance of its intellectual property rights. Since the initiation of research and development of its independent Shingled Module products, the Company has closely monitored related patents, actively developed its global patent portfolio and built up its own intellectual property system. Prior to product launch, comprehensive searches and analyses on freedom to operate have been conducted by internal technical and legal teams, as well as external intellectual property organizations. The Company firmly believes that its technologies and products are distinct from those of other industry partners and possess unique advantages. Currently, the available information does not indicate any infringement on Maxeon's European patent by the Company's relevant product. The Company has instructed local attorney in Germany to actively defend itself in the lawsuit and assert its legitimate rights and interests in accordance with the law.

2 . The Company has maintained a good partnership with TZE for a long time. As the long-term supplier of the solar cells for TZE, the Company has continuously exchanged information on the manufacturing technology of shingled solar cells with TZE. The Company has been continuously developing its technologies, and has been granted patent rights in Europe, USA, Australia, Japan, and South Korea. The Company is willing to collaborate with all partners, including TCL Energy, to foster mutual development and maintain long-term stable cooperation, aiming to better serve the global energy transition.

3.  As a major supplier of shingled PV modules, the Company has been engaged in expansion of European market for rooftop solar PV products, including Germany and Netherlands, and has gained wide acceptance by customers. The Company adheres to the maintenance of high quality and value for its shingled PV module products, which is one of the popular module products of rooftop solar system in Europe. According to statistics, one in every seven rooftop solar systems for residential in Europe has chosen Terra shingled module. The Company places great importance on customer experience and has a strong post-sales support system. We will take full responsibility for product after-sales service in accordance with the sales contract.

4 . The amount claimed in this lawsuit is EUR1 million, accounting for about 0.0128% of the Company's latest audited net asset. It does not constitute a significant impact on the Company.

Photovoltaic industry is a crucial participant in global carbon neutrality and plays an important role in driving global energy transition. As one of the most representative companies in the global photovoltaic industry, we always uphold the business philosophy of "Integrity", and with an open attitude, are committed to cooperate with industry and community partners to promote the wider application of technology, accelerate the global energy transition, and make greater contribution to the global realization of the "Double Carbon Target". Tongwei will remain true to its original aspiration and strive forward with determination!

The statement is hereby made.

Tongwei Co., Ltd.

June 20, 2023

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