China New Economy Fund Limited entered into a non-legally binding strategic cooperation memorandum of understanding with Gransing Financial Group Limited and CITIC Merchant Co. Limited. In order to strengthen and deepen the cooperation between the parties to the MOU at the business, equity and strategic levels, the MOU was entered with the purpose of equality, mutual benefit, complementary advantages to create a win-win situation for all parties. The Company, Gransing Financial, and CITIC Merchant have their respective advantages and strong complementarities in different fields, and have a wide range of cooperation and broad development prospects. The parties have decided to rely on the Company to promote financial innovation, resource integration and system coordination with Gransing Financial and CITIC Merchant, to create a cross-border integrated financial service and investment and financial holding platform to contribute to the implementation of national strategies such as the development of the Guangdong-Hong Kong-Macau Greater Bay Area, technological innovation, and the "One-Belt, One-Road" initiative. Pursuant to the MOU, the Company intends to collaborate with its substantial shareholders, Sunwah Kingsway Capital Holdings Limited and Radiant Asset Management International Limited to provide full support to Gransing Financial in terms of strategic and financial resources, and to promote and facilitate the formation of a comprehensive strategic business synergy and capital alliance between Gransing Financial and CITIC Merchant to enhance their respective services in securities, investment banking, private equity, asset management and wealth management, as well as to transform Gransing Financial from a comprehensive financial service provider in Hong Kong into a cross-border investment and financial holding platform. Through the resource background and network of its shareholders, Gransing Financial will further introduce other strategic investors to join in direct financing through the issuance of A Shares and B Shares at the equity level, and indirect financing through the issuance of bonds and the formation of funds to optimize its shareholder structure and enhance its capital strength. In the near future, the Company will assist and support Gransing Financial to complete the first phase of direct financing of not less than HK$1 billion and indirect financing of not less than HK$3 billion. The use of proceeds shall focus on public market investment, private equity funds, and other areas. At the same time, Gransing Financial will enrich its financial license resources and cross-border business capabilities through system integration with CITIC Merchant. By forming a comprehensive strategic business synergy with CITIC Merchant, Gransing Financial can improve its comprehensive service capabilities in various aspects such as local securities investment banking, inclusive financing, private equity, asset management and wealth management in Hong Kong. At the same time, leveraging and relying on the collaboration between CITIC Merchant with central government-owned enterprises and local state-owned enterprises based in Hong Kong, Gransing Financial strives to build its cross- border financial services and value investment capabilities, and integrates the vendor's businesses and purchaser's businesses, to form a unique business model and expand its market influence and market competitiveness. Gransing Financial will also restructure and increase capital of CITIC Merchant, and form capital alliance and business synergy through equity cooperation to jointly build new brands and platforms under State Ventures Investment and State Ventures Capital, which aims to advance internal circulation based on external circulation, and then support external circulation with internal circulation. An investment holding company of not less than RMB1 billion will be jointly established, focusing on supporting and investing in projects that are pre-incubated and developed by CITIC Merchant, to achieve the capital increase and value realization based on the platform of CITIC Merchant. Taking advantage of and relying on its resource system, in terms of serving the construction of the Guangdong-Hong Kong-Macau Greater Bay Area, the Company will support Gransing Financial to invest, control, lead and organise Beiwen Times, a leading domestic digital culture operator held by CITIC Merchant, in its RTO or IPO in the Hong Kong capital market, and on that basis collaborate with the central state-owned enterprises and local state-owned enterprises in Shanghai and Zhuhai engaged in the cultural tourism industry to initiate and establish the Greater Bay Area Cultural Tourism Industry Development Fund, focusing on investing in high-quality cultural tourism projects such as brand consumption, industrial upgrading and hotel REITs in the Greater Bay Area. The Company will, in the field of science and technology innovation, support CITIC Merchant to establishes the Greater Bay Area Science and Technology Innovation Development Fund in cooperation with the central government-owned high-tech enterprises in Hong Kong to promote the integration of industry and finance as well as the transformation of scientific and technological achievements and industrial incubation, for making a positive contribution to the high-quality construction of the Guangdong-Hong Kong-Macau Greater Bay Area. On the other hand, to support the "One-Belt, One-Road" initiative, Gransing Financial will work together with the state-owned energy and resource enterprises and the local state-owned enterprises in Qingdao, Xiamen, Guangxi and Yunnan to expand the merger and reorganization and non-performing asset management business in the bulk commodity sector through the formation of Sunwah Merchant New Dynamic Energy Conversion Fund, including debt restructuring and strategic investment in the resource-based assets such as gold, coffee and oil and gas. Gransing Financial will mainly focus on fields such as public market investment and private equity funds, with the use of funds mainly for mergers and acquisitions of domestic private equity funds and insurance brokers, and in case that special opportunities arise when central state-owned enterprises in Hong Kong dispose their non-performing assets and resolve their historical unsettled issues, the Sunwah Merchant White Knight Fund will be initiated with a focus on the relief and restructuring of the listed companies in Hong Kong. In summary, the Company leverages its shareholder strengths to promote and facilitate system integration and business synergies between Gransing Financial and CITIC Merchant, which, combined with business and capital cooperation such as domestic private equity funds and insurance brokers, will further enhance its cross-border resource integration and profitability.