Cornerstone Technologies Holdings Limited — Capital/Financing Update 2021

Dec 6, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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CORNERSTONE TECHNOLOGIES HOLDINGS LIMITED 基石科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8391)

COMPLETION OF SUBSCRIPTION OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcement of Cornerstone Technologies Holdings Limited (the “ Company ”) dated 29 November 2021 (the “ Announcement ”) in relation to the Subscription Agreement entered into between the Company and the Subscriber in respect of the Subscription. Unless otherwise specified, capitalized terms used in this announcement shall have the same meanings as set out in the Announcement.

COMPLETION OF SUBSCRIPTION OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that all the conditions precedent to the Subscription Agreement have been fulfilled and completion of the Subscription took place on 6 December 2021.

Upon the Completion, an aggregate of 8,000,000 Subscription Shares, representing approximately 1.32% of the issued share capital of the Company as at the date of this announcement as enlarged by the Subscription, have been issued and allotted by the Company to the Subscriber at the Subscription Price of HK$0.62 per Subscription Share under General Mandate.

To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, and save as disclosed in the Announcement, the Subscriber is a third party independent of the Company and its connected persons, and the Subscriber has not become a substantial Shareholder as a result of the Subscription.

The gross proceeds from the Subscription amounted to approximately HK$4.96 million, and the net proceeds arising from the Subscription, after deducting all relevant expenses incidental to the Subscription, amounted to approximately HK$4.94 million, which is intended to be used for general working capital of the Company.

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CHANGES IN THE SHAREHOLDING STRUCTURE OF THE COMPANY

Pursuant to the information on shareholdings available to the Company as at the date of this announcement, the shareholding structure of the Company immediately before and immediately after completion of the Subscription is as follows:

Controlling Shareholder, SubstantialShareholders and DirectorsGlobal Fortune Global LimitedGlorytwin LimitedMr. Lau Wai Yan LawsonMr. Pan WenyuanMr. Li Man Keung EdwinPublic ShareholdersThe SubscriberOther public ShareholdersTotal	Immediately beforecompletion of theSubscriptionNumber ofSharesApprox.% ofshareholding235,603,22539.28%81,000,00013.50%30,302,7035.05%23,872,0003.98%19,112,6133.19%––209,900,00035.00%599,790,541100.00%	Immediately aftercompletion of theSubscriptionNumber ofSharesApprox.% ofshareholding235,603,22538.76%81,000,00013.33%30,302,7034.99%23,872,0003.93%19,112,6133.14%8,000,0001.32%209,900,00034.53%607,790,541100.00%

By Order of the Board

Cornerstone Technologies Holdings Limited LIANG Zihao

Co-Chairman and Executive Director

Hong Kong, 6 December 2021

As at the date of this announcement, the executive Directors are Mr. LIANG Zihao, Mr. SAM WENG WA Michael, Mr. LI Man Keung Edwin, Mr. LAU Wai Yan Lawson and Mr. PAN Wenyuan, the non-executive Director is Mr. WU Jianwei and the independent non-executive Directors are Mr. TAM Ka Hei Raymond, Mr. YUEN Chun Fai and Ms. ZHU Xiaohui.

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This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the “Latest Listed Company Information” page of the GEM website at www.hkgem.com for at least seven days after the date of publication and on the Company’s website at www.cstl.com.hk.

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