KuangChi Science : VOLUNTARY ANNOUNCEMENT - ENTERED INTO INTELLIGENCE PROJECTS AGREEMENTS

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

KUANGCHI SCIENCE LIMITED

光啟科學有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 439)

VOLUNTARY ANNOUNCEMENT

ENTERED INTO INTELLIGENCE PROJECTS AGREEMENTS

This announcement is made by KuangChi Science Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to inform the shareholders and potential investors of the Company of the latest business development of the Group.

The Company's board of directors (the "Board") is pleased to announce that on 18 August and 10 September 2020, Shanghai KuangChi Smart City Network Technology Co., Ltd.* (上海光啟智城網絡科技有限公司) ("KuangChi Smart City"), an indirect wholly-owned subsidiary of the Company, entered into two agreements in respect of AI overlay construction project for the Administrative Service Centre of Huangpu District, and a social refined governance service leasing project for the Huangpu Branch of the Shanghai Municipal Public Security Bureau (collectively known as "Intelligence Projects") respectively. Pursuant to these agreements, the total consideration was approximately RMB4,000,000.

- 1 -

The Group has been committed to open up the AI market in the PRC, and the Intelligence Projects will provide a good practical experience and a model for the research and development of the Group's in-depth professional application products for the vertical industries based on core AI algorithms. The Intelligence Projects mean that the Group's AI algorithms and products will be deepened and made available in the police service-related sectors in Shanghai, and that the Group's AI algorithms and products will be officially made available in the administrative service field and its related application scenarios, making the first breakthrough for the Group in the administrative service sector. Accordingly, the Intelligence Projects are expected to have a positive impact on the Group's operating results in future.

By Order of the Board

KuangChi Science Limited

Dr. Liu Ruopeng

Chairman and Executive Director

Hong Kong, 18 September 2020

As at the date of this announcement, the board of directors comprises four executive directors, namely Dr. Liu Ruopeng, Dr. Luan Lin, Dr. Zhang Yangyang and Dr. Ji Chunlin; one non-executive director, namely Mr. Li Chiu Ho; and three independent non-executive directors, namely Dr. Wong Kai Kit, Mr. Choi Wing Koon and Dr. Deng Ke.

• For identification only

- 2 -