Newborn Town Inc. — Capital/Financing Update 2021

Jan 28, 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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NEWBORN TOWN INC. 赤子城科技有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9911)

INSIDE INFORMATION

UNAUDITED OPERATING DATA AND UNAUDITED REVENUE INFORMATION FOR THE YEAR 2020

This announcement is made by Newborn Town Inc. (the “ Company ”, together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the “ Directors ”) of the Company (the “ Board ”) is pleased to announce the unaudited operating data for the year ended 31 December 2020 as followed: (i) the number of downloads of social networking apps of the Group reached 183 million, representing an increase of approximately 20.40% as compared to the end of the third quarter of 2020, and the average monthly active users of our social networking apps amounted to approximately 11.36 million; (ii) the number of downloads of game apps of the Group reached 152 million, representing an increase of approximately 23.58% as compared to the end of the third quarter of 2020, and the average monthly active users of game apps of the Group amounted to approximately 11.51 million.

It is expected that for the year ended 31 December 2020, the Group will record a total revenue of approximately RMB1,050 million to RMB1,350 million, representing a growth of approximately 150% to 250% as compared to the corresponding period of 2019. Such increase in the revenue is mainly due to the rapid growth of the social networking business, including the increase in user scale, the expansion of markets covered and the diversification of monetization methods.

The Company will continue to penetrate into the social networking sector with additional investment in research and development of video-based social networking products. The Company will further expand its presence in overseas market by providing high-quality social networking service and contents for users around the world. With social networking as its core business line, the Company will also propel a diversified development supported by games and other business sectors to deliver better value for its shareholders.

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The above-mentioned operating data and revenue information are unaudited and are based on preliminary internal information of the Group, which may differ from the figures to be disclosed in the audited or unaudited consolidated financial statements to be published by the Company on an annual or half-yearly basis due to various uncertainties during the process of collecting such information. As such, the above operating data and revenue information are provided for investors’ reference only. Investors are advised to exercise caution and not to place undue reliance on such information when dealing in the securities of the Company. When in doubt, investors are advised to seek professional advice from professionals or financial advisers.

By order of the Board Newborn Town Inc. LIU Chunhe Chairman of the Board

Beijing, 28 January 2021

As at the date of this announcement, the executive Directors of the Company are Mr. LIU Chunhe, Mr. LI Ping and Mr. WANG Kui; and the independent non-executive Directors of the Company are Mr. PAN Xiya, Mr. CHI Shujin and Mr. LIU Rong.

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