Highway Holdings Limited has signed a master agreement to form a majority-owned joint venture with Guangdong Huahu New Energy Technology Co., Ltd., a manufacturer of Wowtiger-branded battery energy storage systems. This joint venture, expected to be named Huahu International New Energy Technology Company Limited, will combine Huahu's energy storage products and technology with Highway Holdings' global manufacturing capabilities and European operations. Highway Holdings will own 57% of the venture, which will market and distribute Huahu's products in international markets including Germany, Italy, the United States, and South America. The transaction provides Highway Holdings access to the growing energy storage market, potential revenue from product sales and services, and opportunities to increase utilization of its existing manufacturing operations. The initial contributions to the joint venture are valued at approximately $3.5 million, with Highway Holdings contributing $2.0 million in cash and Huahu contributing $1.5 million in products and technology. The venture will also explore semi-knocked-down (SKD) manufacturing opportunities. This strategic move aims to diversify Highway Holdings beyond its traditional OEM business and capitalize on the expanding global market for energy storage systems, which is projected to grow significantly in the coming years.