The Board announced that on 13 April 2024, PTF, a subsidiary of the Cybernaut International Holdings Company Limited, entered into the MOU with Norinco Equipment in relation to the Proposed Cooperation. Norinco Equipment is a wholly owned subsidiary of China North Industries Corporation ("Norinco") and is principally engaged in disaster reduction and rescue equipment, smart and safe city and BeiDou Navigation Satellite System ("BDS") overseas applications. Norinco Equipment is the national team that implements the promotion of BDS along the Belt and Road Initiative.

To the best of the Directors' information and belief having made all reasonable enquiries, Norinco Equipment and Norinco are Independent Third Parties. PTF is a Hong Kong based investment holding company focusing on expanding market opportunities for communication, navigation and remote sensing satellite technology products and solutions in Hong Kong, Southeast Asia and the Middle East. It is committed to providing customized intelligent technology solutions based on customer needs, including different types of satellite positioning terminal equipment (mainly compatible with BDS) and customized spatio-temporal intelligent solutions based on high-precision positioning.

BDS is a navigation satellite system independently constructed and operated by China and provides all-time, all-weather and high-accuracy positioning, navigation and timing services to global users. BDS, GPS, GLONASS and GALILEO are the four core suppliers of global satellite navigation systems. Pursuant to the MOU, the parties thereto intend to jointly establish the "BeiDou Global Application Hong Kong Research Institute" in Hong Kong to develop the construction of BDS ground-based enhancement stations and commercial applications in the field of geospatial information, including but not limited to high-precision mapping, smart agriculture, smart terminals, smart fisheries, smart water conservancy, disaster prevention and emergency rescue, intelligent driving, smart cities, etc. The MOU was made pursuant to the strategic cooperation agreement dated 8 August 2023 made between Norinco Equipment and PTF relating to the proposed cooperation to develop in South East Asia the constructions of ground stations for BDS and the commercial applications of geospatial information.

The Proposed Cooperation is not legally binding and shall be subject to further negotiations and execution of formal agreements. PTF is actively participating in events to raise its profile amongst its target customers. It has participated in the April 2024 innoEX in Hong Kong to promote its products and services for all potential opportunities that arise within the Hong Kong market.

The Company considers that entering into the MOU with Nor in the MOU with NorinCo Equipment will strengthen the business cooperation with Norinco Equipment; and that will influence the Group development in the high-precision positioning services' market in Hong Kong and South East Asia in the future. The Proposed Cooperation may or may not proceed. Shareholders and investors are advised to exercise caution when dealing in the Shares of the Company.