Space Group Holdings Limited — Capital/Financing Update 2021

Jul 15, 2021

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Space Group Holdings Limited 恆宇集團控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2448)

VOLUNTARY ANNOUNCEMENT

ENTRY INTO A STRATEGIC COOPERATION FRAMEWORK AGREEMENT WITH A STATE-OWNED ENTERPRISE WITH TOTAL ASSETS EXCEED 100 BILLION – QCDG ON “QINGDAO MACAU DIGITAL ECONOMIC INDUSTRIAL PARK” AND RELATED FUND PROJECTS

This announcement is made by Space Group Holdings Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) on a voluntary basis to provide the shareholders (the “ Shareholders ”) and potential investors of the Company with information on the latest business development of the Group.

The board of directors (the “ Board ”) of the Group hereby announces that on the date of 15 July 2021, the Group entered into a strategic cooperation framework agreement (the “ Strategic Cooperation Agreement ”) with West Coast Of Qingdao Development (Group) Co., Ltd (“ QCDG ”), pursuant to which, the Group and QCDG will carry out multi-level and indepth cooperation and form a strategic partnership on the “Qingdao Macau Digital Economy Industrial Park and Digital Economy Cross Border Industry Fund Project”.

QCDG is a state-owned enterprise wholly owned by the State-Owned Assets Supervision and Administration Commission of Qingdao People’s Government (“ SASAC of Qingdao ”), with total assets of RMB160 billion. QCDG has invested in more than 118 holding companies, including four listed companies, and has invested over RMB100 billion in fixed assets.

Both parties plan to join hands with International Universities Innovation Alliance (“ IUIA ”) and other investment parties to jointly initiate the construction of “Qingdao Macau Digital Economic Industrial Park” (the “ Park ”) in Qingdao. By introducing the capital and financial technology resources from Macau and Hong Kong, and learning from the experience of crossborder financial cooperation in Guangdong, Hong Kong and Macao Bay area, the Park will be

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able to create an innovative mode of financial technology industry based on the IUIA global cross-border incubation network and more than 100 projects incubated in Qingdao Blockchain Bay. It will promote the leap over the development of the financial technology industry in Qingdao and Macau (Hengqin).

In addition, both also plan to establish “CICC Space Cross Border Industrial Investment Fund” (the “ Fund ”) in Qingdao, armed with China International Capital Corporation Limited (“ CICC ”), Space Financial Holdings Limited, a subsidiary of the Group, and other financial institutions, specialized investment in potential start-ups and domestic high-quality projects.

The Board believes that, leveraging on the Group’s strong foundation in China, Hong Kong and Macau, as well as the strong financial experience background of the professional management team. The achievement of this Strategic Cooperation Agreement is of significance to the Group. In addition to Qingdao’s total assets and profits of state-owned enterprises ranked second among the 15 vice provincial cities in China, enterprises have great potential for local development. Given the strong background of QCDG, an enterprise of SASAC of Qingdao, supported by the local government, it will help the Group to expand its territory and develop its financial business locally.

The Board is of the view that, the contract parties would leverage their respective advantages, resources and expertise to build a stable and mutually beneficial strategic cooperation relationship. There will be a huge room for cooperation in the future. The entry into the Strategic Cooperation Agreement is in line with the development strategies of the Group as a whole, which will enable the Group to seize any potential business and investment opportunities, and is in the interests of the Company and its shareholders as a whole.

GENERAL INFORMATION

Shareholders and potential investors of the Company shall note that the Strategic Cooperation Agreement is a framework agreement which is subject to uncertainties. The Company and QCDG may enter into further definitive cooperation agreements prior to the commencement of any actual cooperation and the time and amount of such definitive cooperation agreements are subject to uncertainties. Shareholders and potential investors of the Company are advised to exercise cautions when dealing in the securities of the Company.

By order of the Board Space Group Holdings Limited Che Chan U Chairman

Hong Kong, 15 July 2021

As at the date of this announcement, the Board comprises Mr. Che Chan U, Ms. Lei Soi Kun and Mr. Ho Kwong Yu as executive Directors; and Mr. Fan Chun Wah, Andrew, Mr. Eulógio dos Remédios, José António and Ms. Leong Iat Lun as independent non-executive Directors.

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