SAPPHIRE : Increase In Paid-Up Capital Of An Associate Company

SAPPHIRE CORPORATION LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 198502465W)

INCREASE IN PAID-UP CAPITAL OF AN ASSOCIATE COMPANY

The Board of Directors (the "Board") of Sapphire Corporation Limited (the "Company") together with its subsidiaries (collectively known as the "Group"), wishes to announce that its indirectly-owned subsidiary, Chengdu Kai Qi Rui Business Management Co., Ltd. ("Chengdu KQR"), has increased the paid-up capital of Company's indirectly-owned associate company, Ranken Railway Construction Group Co., Ltd. ("Ranken Railway"), from RMB 245,026,942 to RMB 277,309,348 by way of capitalisation of dividends of RMB 12,282,406 distributed by Ranken Railway and RMB 20,000,000 via cash injection from internal resources, in total of RMB 32,282,406 ("Increase in Share Capital").

The Executive Chairman of the Group, Mr Cheung Wai Suen, and Shandong Hi-Speed Road & Bridge Investment Management Co., Ltd has proportionately increased their investment in Ranken Railway in the same manner mentioned above and the percentage of shareholdings by Chengdu KQR in Ranken Railway remains the same after the Increase in Share Capital as set out in the table below:

The Increase in Share Capital of Ranken Railway is not expected to have any material impact on the net tangible assets per share and earnings per share of the Group for the financial year ending 31 December 2022.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above transaction, other than in their respective capacities as Director and/or substantial shareholder of the Company and Mr Cheung Wai Suen's direct interest in Chengdu Kai Qi Rui Business Management Co., Ltd. and Ranken Railway of 2.0% and 0.36%, respectively.

By Order of the Board

SAPPHIRE CORPORATION LIMITED

Wang Heng

Chief Executive Officer and Executive Director

1 March 2022