China U Ton : FURTHER UPDATE ON ARBITRATION

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CHINA U-TON FUTURE SPACE INDUSTRIAL GROUP HOLDINGS LTD.

中 國 優 通 未 來 空 間 產 業 集 團 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 6168)

FURTHER UPDATE ON ARBITRATION

This announcement is made by China U-Ton Future Space Industrial Group Holdings Ltd. (the "Company") on a voluntary basis. Reference is made to the announcement of the Company dated 31 July 2020 in relation to series of arbitrations lodged by Hebei Changtong against China Mobile Hebei with a total sum of approximately RMB324.66 million, being claimed as at 31 July 2020 (the "Announcement"). Capitalised terms used herein shall have the same meanings as those defined in the Announcement, unless the content requires otherwise.

Subsequent to the announcement of the Company dated 31 July 2020, no further applications were submitted to the Shijiazhuang Arbitration Commission（石家莊仲裁委員會）and

the other arbitration commissions against China Mobile Hebei. As at the date of this announcement, Hebei Changtong has applied for the repayment of a total of approximately RMB324.66 million for all arbitrations against China Mobile Hebei. (which, amongst other things, include (1) service fees receivable by Hebei Changtong, (2) deposits already paid by Hebei Changtong and (3) damages granted against China Mobile Hebei of approximately RMB223.28 million (the "Arbitration Contract Sum") and the interest payable calculated from the Arbitration Contract Sum of approximately RMB101.38 million (the "Arbitration Interest Sum").

As at the date of this announcement, the Shijiazhuang Arbitration Commission, the other arbitration commissions and the People's Court have ordered China Mobile Hebei to repay a total of approximately RMB132.12 million (the "Arbitration Sum").

As at the date of this announcement, the Company has received a total of approximately RMB161.76 million and there is still a receivable of approximately RMB36.24 million from China Mobile Hebei (representing a total of approximately RMB198.00 million (the "Negotiation Sum")). The Negotiation Sum being higher than the Arbitration Sum was mainly due to China Mobile Hebei's speeding up of the service agreements audit and payment in accordance with the terms of the respective service agreements.

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As there are still serval service agreement audits to be completed, the final Arbitration Contract Sum that can be recovered is yet to be determined. Likewise, the final Arbitration Interest Sum that can be recovered is currently pending calculation by the legal advisers of the Company responsible for the Arbitration.

The Shijiazhuang Arbitration Commission, the other arbitration commissions and the People's Count may, from time to time, hand down further batches of decision in respect of the arbitrations against China Mobile Hebei. In view of the above, going forward, the Company will, on a monthly basis, keep the shareholders of the Company and potential investors informed of any further material developments in connection with the on-going arbitrations by way of further announcement(s) in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares.

By Order of the Board

China U-Ton Future Space Industrial Group Holdings Ltd.

Jiang Changqing

Chairman and Executive Director

Hong Kong, 31 August 2020

As at the date of this announcement, the executive directors are Mr. Jiang Changqing, Mr. Zhao Feng, Ms. Ji Huifang, Ms. Liu Jianzhou, Mr. Chen Qizheng and Mr. Liu Zhen; the non-executive director is Mr. Ge Lingyue; the independent non-executive directors are Mr. Meng Fanlin, Mr. Wang Haiyu, Ms. Teng Xun and Ms. Wu Hanpu.

Website: www.chinauton.com.hk

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