The board of directors of New Huo Technology Holdings Limited announced that, on 18 July 2023, New Huo Asset Management (Hong Kong) Limited, a wholly-owned subsidiary of the Company, and Bingo Success Limited (the "Bingo"), a wholly-owned subsidiary of Bingo Group Holdings Limited which is listed on the GEM Board of the Stock Exchange entered into a technical consultancy services agreement (the "Agreement") for a to-be-established limited partnership fund (the "Fund") in which New Huo Asset Management will be the investment manager and aims to invest in businesses involving the development of intellectual property commercialisation for various products. Pursuant to the Agreement, Bingo will provide certain technical consultancy services to the Fund. Scope of services Pursuant to the Agreement, Bingo as an entertainment industry expert will provide, including but not limited to, information concerning potential opportunities for the acquisition or realisation of intellectual property assets, market comparisons, and technical advice in relation to selected intellectual property assets for performance analysis and monitoring.

REASONS FOR AND THE BENEFITS The Group is principally engaged in the provision of technology solution services, a variety of services in virtual asset ecosystems, such as asset management, trust and custodian businesses and cryptocurrency trading. The partnership will combine the Company's industry-leading virtual asset investment management services and its expertise in investment solutions with Bingo's expertise in movie production, crossover marketing, provision of interactive content, and cinema investment. As blockchain technology rapidly develops, there are opportunities for companies in the film and entertainment industry to use these technologies to grow, digitize and transform their business models.

The application of new technologies provides more diverse and flexible options for film and entertainment development. Web3 can offer better protection and display methods for artwork, thus widening the scope of development for art and culture, creative, and intellectual property industries. The setup of the Fund focused on assisting innovative projects in the Web3 ecosystem and the development of cinematic IPs would greatly enhance the mass adoption phase of Web3 and increase the visibility of the Web3 ecosystem of Hong Kong in the international arena.

As such, the Board is of the view that the terms of the Agreement are fair and reasonable, and the entering of the Agreement is in the interests of the Company and its shareholders as a whole.