The board of directors of Hong Kong Aerospace Technology Group Limited announced that, on August 26, 2021, the company and Shandong Institute of Industrial Technology entered into the strategic cooperation agreement in relation to the cooperation between the parties to jointly construct and operate the first high- resolution agricultural satellite constellation. Pursuant to the Cooperation, the parties aim to utilise their aerospace information technology expertise to partake in a nationwide technological innovation and industrial cooperation between the Shandong Province and the Guangdong-Hong Kong-Macao Greater Bay Area. Pursuant to the Cooperation, the parties intend to collaborate in areas including aerospace information technology innovation; construction of advanced earth observation satellite constellation; and satellite application and innovation for commercial and government users. The parties target to launch around eight satellites in 2022 as the first formation of the aforementioned agricultural satellite constellation. By virtue of the Cooperation, the company can introduce Shandong Institute of Industrial Technology as a partner of the company so that the Group and Shandong Institute of Industrial Technology could closely cooperate with each other for the Group's aerospace business projects. The company considers that a partnership with Shandong Institute of Industrial Technology could be established through the cooperation, and provide synergies through integration of skills, knowledge and expertise. The Board also believes that the Cooperation with Shandong Institute of Industrial Technology will broaden the technological innovation and economic benefits of the group.