09:57 AM EDT, 07/22/2026 (MT Newswires) -- Highway Holdings ( HIHO ) and Guangdong Huahu New Energy Technology have signed a letter of intent to form a joint venture that combines the company's manufacturing capabilities with Huahu's products and technology, Highway said on Wednesday.

The proposed venture, tentatively named Huahu International New Energy Technology, will have initial contributions of $3.5 million, consisting of $2 million in cash from Highway and about $1.5 million in products and technology transfer from Huahu, the company said.

Huahu will provide the venture with exclusive semi-knocked-down manufacturing, marketing and distribution rights of its products for the Germany, Italy, US and certain South American markets, Highway said.

The LoI further contemplates the initial issuance of up to 400,000 of restricted shares by Highway to Huahu upon the achievement of certain milestones in Europe and Hong Kong by the joint venture, Highway said.

The joint venture will be jointly managed by the parties, with Highway owning a 57% stake and Huahu owning the remaining 43% interest in the entity, the company said.

The parties intend to negotiate and sign definitive agreements as contemplated by the non-binding LoI within a month, Highway said.

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