The board of directors of the Brightstar Technology Group Co., Ltd. announced that on 27 July 2023 (after trading hours), the Company entered into a memorandum of understanding with MainNet Capital Pte Ltd, pursuant to which both parties intend to establish a new fund in Singapore to make investments in industries related to the Group. Subject matter: The parties shall jointly establish the Overseas Fund, which will make investments in industries related to the Group. MainNet Capital will be responsible for the operation of the Overseas Fund.

Fund size: The fund size shall be at least USD 30 million, of which all the fund will be contributed by both parties. During the period of one month from the date of the MOU, MainNet Capital will negotiate exclusively with the Company on the Overseas Fund and will not (and ensure its substantial shareholders, subsidiaries, directors, staff, senior management, agents or representatives not to) make any offer, discuss, negotiate and/or enter into any agreement or understanding with any other party with respect to the Overseas Fund or the MOU. Pursuant to the MOU, the Company shall be entitled to conduct due diligence review on the feasibility study of the Overseas Fund upon signing of the MOU.

MainNet Capital and its agent shall use their best endeavors to assist the Company in completing the due diligence review. Subject to the findings of the due diligence review and both parties having obtained all necessary consents and/or approvals, the Company and MainNet Capital shall use their best endeavors to agree on the terms of the Proposed Investment and enter into a legally binding formal agreement in relation to the Proposed Investment (the ``Formal Agreement'') within the Exclusivity Period. Unless mutually agreed otherwise, the MOU will terminate upon the occurrence of any of the following: (i) the execution of the Formal Agreement; (ii) the parties thereto agree to terminate the MOU in writing for whatever reasons; or (iii) the non-entering into of the Formal Agreement before the expiry of the Exclusivity Period.

The MOU does not constitute a legally binding agreement for the parties to the MOU, except for the provisions relating to due diligence review, exclusivity, confidentiality, termination of the MOU, fees, and governing law and jurisdiction.