The Board of Hong Kong Aerospace Technology Group Limited announced that, on 16 October 2023, the Company entered into the Alya-1 System Contract with Alya. Pursuant to which the Group agrees to provide overall design for satellite network, satellite manufacturing, as well as coordination and facilities for satellite launching in respect of the communication and remote sensing satellite network in South America (Alya-1 System) for the construction of the Alya-1 System, which comprises the manufacturing of 108 integrated communication and remote sensing satellites and the construction of a satellite management center, a satellite data processing center as well as two ground stations, for the Total Contract Price of approximately USD 675 million. The scope of Work and services will be supplied by the Group including: (a) Overall design of the communication and remote sensing satellite network in South America (Alya-1 System); (b) Assembly, manufacturing and testing of 108 integrated communication and remote sensing satellites; (c) Coordination for launching services that enable the Launch of the communication and remote sensing satellite network in South America (Alya-1 System) to the Designated Orbit; (d) Construction of a satellite management center; (e) Construction of two satellite ground stations; (f) Construction of a satellite data processing center; and (g) Trainings for satellite control and operation.

Alya may, at its option and at its expenses, (i) not later than three (3) months prior to the scheduled date of the pre-shipment review of any spacecraft deliverable, order the Group to store any such spacecraft for a period of up to three (3) years from the date of the spacecraft pre-shipment review, and to provide certain services associated with storage of such spacecraft; (ii) request the Group to buy in-orbit insurance on its behalf; and (iii) in addition to the two ground stations original provided in the Contract, further request the Group to provide more ground stations. The Total Contract Price is approximately USD 675 million. Alya shall make the Advance Payment, of USD 5 million, as down payment within one hundred and twenty (120) days after the Effective Date.

The remaining balance of the Total Contract Price shall be payable according to each of the payment milestones upon the full, satisfactory and timely completion and delivery, as required, of the items of Work. The Total Contract Price shall include any related trainings and documentations and related charges for insurance that the Group is required to take out or maintain under the Contract, technical support in respect of Alya's procurement of Launch and in-orbit insurance (but not including the procurement of Launch and in-orbit insurance by the Group on behalf of Alya unless Alya exercises option under the Contract) and shipping costs.