The Board of Daisho Microline Holdings Limited announced that, on 13 July 2022, after trading hours, Digital Mind entered into the JV Agreement with LBG, in relation to, among other matters, (i) the subscription of the JV Shares and (ii) the possible provision of shareholder's loan to the JV. Upon completion of the subscription of JV Shares, the JV will be owned as to 60% by LBG and 40% by Digital Mind, and the financial results of the JV will not be consolidated into the financial statements of the Group. Pursuant to the JV Agreement, for the purpose of subscribing the SP Fund by the JV, each of LBG and Digital Mind shall provide to the JV financing in proportion to their respective shareholding in the JV, either by way of shareholder's loan funded with internal resources or to procure third parties to provide financing.

The shareholder's loan committed by Digital Mind, if materialised, shall be in the principal amount of HKD 19,844,000. The Board announced that, on 13 July 2022, after trading hours, Digital Mind entered into the JV Agreement with LBG, in relation to, among other matters, (i) the subscription of the JV Shares and (ii) the possible provision of shareholder's loan to the JV. Upon completion of the subscription of JV Shares, the JV will be owned as to 60% by LBG and 40% by Digital Mind, and the financial results of the JV will not be consolidated into the financial statements of the Group.

Date: 13 July 2022. Name of the JV: Noricap Fund G. P. Ltd.