The Board of KuangChi Science Limited (company) announced that on 9 August 2023, the company (for itself and on behalf of its subsidiaries), as vendor, entered into the Master Procurement Agreement with Kuang-Chi Technologies (for itself and on behalf of its subsidiaries), as purchaser, in respect of the procurement of the (i) Integrated Intelligent Systems (as defined below) and (ii) Metal Component Products. The Master Procurement Agreement is for a fixed term of three years from the date on which the condition to the Master Procurement Agreement as set out below is fulfilled, provided that either party to the Master Procurement Agreement may terminate the Master Procurement Agreement by giving the other not less than three months' prior written notice. Pursuant to the Master Procurement Agreement, the Group shall sell and KCT Group shall purchase (i) highly customized integrated intelligent systems which are mainly used for the production process management, detection and inspection control, daily management of industrial parks, and the others services relating to the deployment of such integrated intelligent systems (the "Integrated Intelligent Systems"); and (ii) metal component products which include the tools, equipments or components that can be used by KCT Group for its manufacturing process (the "Metal Component Products") to KCT Group, provided that the Group may supply and provide the Products and Services to other third parties.

The payment terms (including the mode of payment and credit terms) shall be negotiated between the parties before signing the individual agreement(s), provided that the payment terms shall be no less favourable to the Group than the terms offered by the Group to the independent third parties for providing the same or similar goods or service by the Group of the same period.