The board of directors of Hong Kong Aerospace Technology Group Limited announced that, on August 18, 2021, the company and The University of Hong Kong (HKU) entered into the memorandum of understanding in relation to the strategic cooperation in the research and development of the satellite data services industry in Hong Kong, covering satellite manufacturing, satellite launching and satellite big data application. Pursuant to the MOU, the parties thereto agreed to conduct scientific research on earth observation, carbon neutrality and urban sustainable development, including the research on development of global high-resolution and high time-frequency seamless remote sensing data cubes and their urban applications, with a view to establishing high-tech demonstration projects. Meanwhile, both parties intend to cooperate in, among others, the development of global high-resolution remote sensing data cubes research work; the application for patent and/or other intellectual property rights for technologies and related products derived from R&D, and publication of relevant dissertations; and the promotion of the commercial application of the data. The MOU shall be effective for a term of 15 years, commencing on the date of the execution of the MOU by both parties, unless terminated by not less than 30 days' written notice served by either party. The parties to the MOU shall negotiate in good faith to procure that a formal cooperation agreement be entered into for the cooperation. Reasons for and benefits of the entering into of the MOU: in order to develop the aerospace business, the company intends to set up a satellite intelligent manufacturing center; a monitoring and operation control, application and data center for satellites; and also conduct corresponding research and development activities. The company is of the view that the cooperation with HKU and the entering into of the MOU will have a positive impact on the future development of the group's aerospace business. As such, the board is of the view that the terms of the MOU are fair and reasonable, and the entering into of the MOU is in the interests of the company and its shareholders as a whole.