KuangChi Science Limited's board of directors announced that on 18 August and 10 September 2020, Shanghai KuangChi Smart City Network Technology Co. Ltd. ("KuangChi Smart City"), an indirect wholly-owned subsidiary of the Company, entered into two agreements in respect of AI overlay construction project for the Administrative Service Centre of Huangpu District, and a social refined governance service leasing project for the Huangpu Branch of the Shanghai Municipal Public Security Bureau (collectively known as "Intelligence Projects") respectively. Pursuant to these agreements, the total consideration was approximately RMB 4,000,000.