The board of directors of New City Development Group Limited announced that on 28 September 2020, the Company has entered into a non-legally binding letter of intent with Allied Sustainability and Environmental Consultants Group Limited (AEC). Pursuant to the Letter of Intent, AEC and the Company agree to conduct further negotiations on a possible mutually beneficial cooperation and collaboration (the "Prospective Transaction") between the two parties. AEC and the Company are considering to form a joint-venture company for the Prospective Transaction (the "JV Company") which will be 50% owned by AEC and 50% owned by the Company.

The new cooperation and collaboration between AEC and the Company involve green, smart and healthy building consultancy expertise from AEC and its subsidiaries and property development expertise from the Company. The collaboration will assist the Company and its clients to create green, smart and healthy community and city globally including but not limited to those places such as Hong Kong, China, Asia Pacific and other locations covered by the Belt and Road Initiative. The JV Company will provide one-stop on-demand green properties development services exclusively for the Company and its clients covering three major business areas, including (a) green and healthy building; (b) acoustics, audiovisual, lighting and theatre planning; and (c) property development services.

The Company shall appoint AEC as its sustainability strategy, environment, social and government ("ESG") and green finance consultant. The Company and AEC will not negotiate with any third party in respect of any transaction which is the same as or similar to the Prospective Transaction for a period of 6 months (or any other period as mutually agreed between them) after the date of signing of the Letter of Intent.