Dragon Rise Group Holdings Limited (06829) announced that on May 20, 2026, its non-wholly owned subsidiary, Dragon Rise New Energy Holdings Limited, entered into a non-legally binding memorandum of understanding with an automotive dealer. The agreement aims to jointly establish and promote a battery swap ecosystem for electric commercial vehicles. According to the memorandum, Dragon Rise New Energy Holdings will collaborate with the dealer to develop and promote a battery swap system in Hong Kong suitable for small electric vans and light, medium, and heavy-duty electric trucks. The cooperation will cover product development, vehicle certification, construction and operation of swap station infrastructure, customer acquisition, and the promotion of autonomous driving technologies, with plans to expand into neighboring markets in the future. The automotive dealer is a limited company established in China, and its parent company is one of the largest truck manufacturers in the country. In light of global trends in new energy vehicle charging technology, the Hong Kong government's roadmap for the adoption of electric commercial vehicles, and recent advancements in battery swap systems, the board believes that entering into this memorandum will help the group seize opportunities arising from Hong Kong's green transportation transition. It aims to establish an efficient new energy infrastructure network for the energy transformation of commercial vehicles, while enhancing the group's revenue diversification and profitability, and strengthening its sustainability. Leveraging the dealer's expertise in the manufacturing and development of light, medium, and heavy-duty trucks, along with the company's capabilities in battery swap infrastructure and new energy vehicle technology and services, both parties can collaborate to utilize their existing resources. This partnership seeks to create a mutually beneficial and synergistic ecosystem, providing innovative electrification solutions for the local market and promoting the adoption of electric commercial vehicles in Hong Kong and surrounding regions. The board considers this cooperation to align with the group's strategy of reducing carbon emissions and establishing a competitive new energy industry hub.