The board of directors of China Information Technology Development Limited announced that, in January 2024, the Group has entered into an agreement with Kilimanjaro Energy Group, Marvion Inc., and two individuals whereby the parties agreed to establish a joint venture company to drive sustainable positive change in the environmental, social, and governance (ESG) sector. It is intended that the JV Company will engage in tokenization on the blockchain natively and at source carbon credits issued in the UAE and to build, manage and operate a decentralized carbon credit exchange licensed in Abu Dhabi. Kilimanjaro Energy Group takes the helm in the forefront of the net zero revolution across top-tier renewable energy projects in Africa and the Middle East.

It possesses an in-depth understanding of market dynamics in these regions and knowledge of technical, financial, and regulatory aspects of project development to navigate through the intricate landscape of energy project development. Net zero concerns reducing greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed by the atmosphere, by oceans and forests for instance. It is targeted at tackling climate change and a growing coalition of countries, cities, businesses and other institutions are pledging to net-zero emissions.

Marvion Inc. is a blockchain and metaverse technology company traded in OTC and engaged in the media and entertainment industry, focusing on movies, drama, animation, comics, music and games which provide content and entertainment to adults and children alike. As at the date of this announcement, Marvion Group Limited, a wholly-owned subsidiary of Marvion Inc., holds 3,335,323 shares of the Company (representing approximately 5.40% of the total issued shares of the Company). Save as disclosed above, to the best knowledge, information, and belief of the Directors, having made all reasonable enquiries, as at the date of this announcement.

The two individuals, Kilimanjaro Energy Group and Marvion Inc. and their respective ultimate beneficial owners are independent of the Company and its connected persons. The Group is principally engaged in the provision of system integration and related support services, provision of IT infrastructure solutions and maintenance services such as integrated marketing AI solutions, big data analytics and data storage. The Company is committed to making appropriate business and investment decisions as and when appropriate in light of the Company's business plan and the market conditions to create greater value to the Company and its Shareholders.

The Board believes that, further to the Company's proposed bond issuance using Distributed Ledger Technology and implemented using Digital Ownership Token (DOTs) standard and the tokenization of corporate bonds of up to HK$180 million, the proposed joint venture allows the Group to further revolutionize the tokenization and blockchain front and invest in renewable energy, sustainable infrastructure, and social impact initiatives. The investment will catalyze the transition to a greener future and strengthen the Company's principal business. The proposed joint venture is a meaningful investment and in the interest of the Company and its shareholders as a whole and JV Agreement was entered into on an arm's length basis and on normal commercial terms, and the JV Agreement also contains clauses required under Rule 19.04(1)(f)(iii) of the GEM Listing Rules.

Accordingly, the entering into of the JV Agreement does not constitute a notifiable transaction of the Company under the GEM Listing Rules and is therefore exempt from the reporting and announcement requirements under Chapter 19 of the GEM Listing rules. The Company will make further announcement in respect of the proposed joint venture as and when appropriate in accordance with the GEM Listing Rules". There is no assurance that any collaboration contemplated under the agreement and this announcement will materialize.