On 9 April 2019, the Company (as lender) and Sky Asia (as borrower) entered into the Loan Agreement pursuant to which the Company had agreed to grant the Loan of HKD 150,000,000 to Sky Asia for a term of three months from the date of the Loan Agreement at an interest rate of 6% per annum. As the Loan was not repaid upon maturity, after negotiation between the parties, the Company entered into the Novation Agreement with Great Wall Broadband Network on 31 December 2020 to novate the obligations and liabilities of Sky Asia under the Loan Agreement to Great Wall Broadband Network. The maturity date of the Loan has since been extended to 1 January 2022, and was further extended to 1 January 2023.

Great Wall Broadband Network has also procured a third party to provide unsecured loans of RMB 40,775,000 and USD 10,798,880 to the Company at 8% per annum; and the creditor's right to such loan together with its accrued interests have been pledged as collateral in favour of the Company for the Loan. The Company has no means of contacting Sky Asia for the purpose of obtaining information relating to its ultimate beneficial owner and its principal business activities. To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, there is no relationship between the Company and its connected persons with Sky Asia.