On August 24, 2023, the signing ceremony for the "Strategic Cooperation in the Solar Energy Sector" between MEGA P&C Advanced Materials (Shanghai) Co., Ltd. (hereinafter referred to as "MEGA P&C") and Covestro (Shanghai) Investment Co., Ltd. (hereinafter referred to as "Covestro") was successfully held in Shanghai.

Both MEGA P&C and Covestro attached great importance to this collaboration. Senior executives from both companies, including MEGA P&C Chairman Wong Yin Yee, Vice Chairman Victor Law, Technical Director Vida Liu, Marketing Director Zhang Huayong, and Board Secretary Cui Jianmin, as well as Covestro's Vice President of Coatings and Adhesives for Greater China, Li Jinqi, witnessed the official launch of this significant partnership.

This cooperation aims to explore and leverage the strengths of both parties in the solar energy sector, driving collaboration in new project and product development, value chain cooperation, and joint market promotion. The focus will be on carbon emission reduction, carbon neutrality, and circular economy initiatives within the solar and renewable energy fields.

The two parties engaged in in-depth discussions on the feasibility of key product technology solutions in the solar energy sector, the advantages and disadvantages of products, market potential, and potential risks.

According to the introduction, MEGA P&C and Covestro will collaborate with partners across the value chain to accelerate the industrial upgrading of the solar industry, commit to circular economy initiatives, and jointly participate in market promotion activities. This includes leveraging platforms such as the China International Import Expo and the China Coatings Show to promote their shared goals of circular economy and carbon reduction. Building on mutual trust and cooperation, the two companies will utilize their overseas platforms to jointly promote innovative technologies and value chain collaboration, thereby advancing the global expansion of the solar energy industry and supporting worldwide carbon reduction and the application of innovative technologies.

"As a global leader in material supply, Covestro has always been committed to driving sustainable development across various application fields through innovative technologies, working together to achieve circular economy goals. This collaboration will combine the strengths of both parties to help MEGA P&C expand low-carbon materials into the solar energy sector," said Li Jinqi, Vice President of Covestro's Coatings and Adhesives Division for Greater China. "This signing marks the beginning of a deeper collaboration between our companies. We look forward to developing more low-carbon and efficient solutions in areas such as solar and wind energy, contributing to the green development of the industry."

Victor Law, Vice Chairman of MEGA P&C, stated: "MEGA P&C is a leading enterprise in China's industrial coatings sector, and providing customers with reliable and time-tested products and solutions has always been our goal. Our collaboration with Covestro has a long history, and we believe there is even greater potential for future cooperation. Next, we will embark on a new journey in the solar energy sector, with our R&D teams working together to bring this strategic partnership to fruition."

The renewable energy sector has always been one of our key development focuses. In the wind power sector, we have become a leading company in the field of wind turbine blade coatings in China and are continuously expanding our market share in wind turbine towers. In the energy storage sector, we have initiated R&D projects for environmentally friendly anti-corrosion solutions for energy storage containers, engaging in technical exchanges and testing with mainstream manufacturers in the downstream industry. This will become an important part of our renewable energy portfolio in the future.

Additionally, the solar energy sector holds vast market potential within the renewable energy field. Driven by global energy initiatives and national policies, solar energy, as a renewable energy source, are expected to surpass coal-fired power to become the largest source of electricity globally and maintain double-digit growth over the next decade. The Asia-Pacific region, particularly China, dominates the solar energy industry chain. The potential future demand for photovoltaic frame coatings alone is expected to reach tens of thousands of tons.

The strategic cooperation between Covestro and MEGA P&C in the solar energy sector, spanning new project and product development, industry chain collaboration, and market promotion, aims to leverage the strengths of both parties to create innovative, environmentally friendly, and high-performance product solutions for the solar energy industry. This will drive green industry upgrades and contribute to the development of a circular economy.

Vida Liu, Technical Director of MEGA P&C, stated: "The solar energy sector has always been an area of focus and strategic importance for us. I will continue to monitor changes in the external market environment to determine when and how a comprehensive product transition can be achieved, identify the tipping point for market transformation, and understand potential customer resistance. Currently, I am optimistic about this innovative solution. Next, I will lead our R&D team to collaborate with Covestro's R&D team to expedite the implementation of this strategic partnership."

Wong Yin Yee, Chairman of MEGA P&C, commented: "Our collaboration with Covestro has a long and fruitful history, contributing to the achievements of both companies. Looking ahead, we believe there is vast potential for further cooperation, and we highly value this strategic partnership with Covestro."

"Carbon emission reduction is a significant challenge facing humanity and has always been a concern for MEGA P&C as a company. We are actively advancing ESG initiatives. Over the years, we have not only focused on developing environmentally friendly products, promoting the application of water-based and solvent-free coatings, but have also made the renewable energy sector one of our key product directions. Today, I am delighted to see that, in addition to wind energy and energy storage, we are embarking on a new journey in the solar energy sector. Next, our departments will take concrete actions to advance product R&D, production, market education, and other measures, hoping to achieve product implementation and large-scale applications in the near future."