As disclosed in the China Cloud Announcement, Zioncom Holdings Limited and China Cloud entered into the Strategic Cooperation Agreement, pursuant to which the parties agreed to establish a comprehensive strategic partnership which the Company shall provide the information in relation to routers' production and development while China Cloud shall use its resources to jointly establish a distributed storage platform (the "Purported Strategic Cooperation"). Under the Strategic Cooperation Agreement, China Cloud and the Company may, subject to market conditions and development, enter into additional cooperation agreements for specific cooperation matters. To the best knowledge and information of the Board, as at the date of this announcement, the Company has not entered into any additional cooperation agreements with China Cloud in respect of the Purported Strategic Cooperation.

As part of the ongoing investigation on the Impugned Directors' potential breaches of their respective directors' duties, the Board has been examining and reviewing certain acts committed by the Impugned Directors, including the Purported Strategic Cooperation. Based on the limited information currently available to the Board, China Cloud is a newly incorporated in Hong Kong in June 2021 and ultimately owned by a PRC individual. Given China Cloud's short operation history based on public disclosure records, and the lack of other public information in relation to China Cloud's background and its alleged businesses, the Board has reason to believe that the disclosures made in the China Cloud Announcement as approved by the Impugned Directors may be inaccurate, particularly information relating to the alleged business focuses and strengths of China Cloud.

Further, as at the date of this announcement, the Company has yet been able to retrieve the original duly signed Strategic Cooperation Agreement due to the Misappropriation as disclosed in the Inside Information Announcements and is therefore unable to ascertain the full scope and impact of the Purported Strategic Cooperation. Having considered the aforesaid and with the view to protect the Company's and the Shareholders' interests as a whole, the Board has resolved to suspend the Company's performance under the Strategic Cooperation Agreement pending further investigation of the Purported Strategic Cooperation and the result of due diligence exercise to be conducted on China Cloud. Further announcement(s) in respect of the Purported Strategic Cooperation will be made as and when appropriate in accordance with the GEM Listing Rules.