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Hung Fook Tong and HKBN

Enter into 5-Year Strategic Partnership Featuring Barter & Bundle Flexibility

(Hong Kong - 12 May 2020) Hung Fook Tong Group Holdings Limited ("HFT", SEHK stock code: 1446) and HKBN Group ("HKBN") today announced that they have entered into a long- term Barter and Bundle strategic partnership. Under a 5-year contract valued at over HK$20 million, HKBN will become HFT's key telecom and technology solutions provider in Hong Kong, and will oversee planning and management of HFT's entire IT system; while HFT will extend its exciting product offerings to HKBN's broad customer base by settling part of the telecom and technology services payments to HKBN through HFT coupons, which can be used for the purchase of wellness food and beverage items in over 110 HFT retail stores across Hong Kong. HFT will also deploy dedicated retail stores as convenient redemption locations for HKBN customers to redeem and collect HKBN products and promotional gifts.

With an aim to leveraging HKBN's expertise in IT and digital transformation, HFT's appointment of HKBN will see the telecom and technology services provider manage its IT operations, as well as review, plan, manage and execute its overall IT transformation strategy in the coming 5 years. The immediate benefits from outsourcing IT operations to HKBN include enhanced cost-efficiency and availability of IT resources. To support HFT's long-term business development, HKBN will devise an IT transformation roadmap based on HFT's business needs, operational requirements and budget, all within a comprehensive service scope that covers maintenance, trouble-shooting, upgrading and interconnecting its point of sales (POS) system, inventory control, e-Payment platforms and real time data processing across its entire retail network. This roadmap will pave the way to accelerate HFT's digital transformation and facilitate its future growth.

Dr Ricky Szeto, CEO & Executive Director of HFT, said, "We are excited to engage HKBN as our long-term technology partner, which has impressed us not only with its ICT excellence and business acumen, but most importantly, its great flexibility and agility to achieve a win-win outcome for both HFT and HKBN. Its unique 'Barter & Bundle' model lets us settle part of the telecom and technology solutions payment with HFT coupons, which helps us save costs off the profit margins, and extend our market reach to HKBN customers."

HKBN Co-Ownerand Executive Vice-chairmanWilliam Yeung said, "At HKBN, we pride ourselves as the only leading telecom and technology solutions provider in Hong Kong that embraces a broad-basedCo-Ownership among our Talent base. This entrepreneurial mindset ensures that we can deliver unparalleled flexibility in our offerings and payment terms, and we seek to co-grow with our customers and help them stay ahead of the competition."

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HKBN Ltd. published this content on 12 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2020 08:54:05 UTC