Synertone Communication : VOLUNTARY ANNOUNCEMENT IN RELATION TO INVESTMENT IN THE DISK STORAGE BANKING BUSINESS

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協 同 通 信 集 團 有 限 公 司

Synertone Communication Corporation

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1613)

VOLUNTARY ANNOUNCEMENT IN RELATION TO

INVESTMENT IN THE DISK STORAGE BANKING BUSINESS

This announcement is made by Synertone Communication Corporation (the "Company", together with its subsidiaries, collectively referred to as the "Group") on a voluntary basis.

Investment in the Disk Storage Banking Business

The board (the ''Board'') of directors (the "Directors") of the Company is pleased to announce that on 19 April 2021, the Company entered into a share subscription agreement (the "Subscription Agreement") with New Paramount Limited (the "Target Company"), an independent third party to the Company. Pursuant to the Subscription Agreement, the Company or its nominee shall subscribe for the new shares of the Target Company (the "Subscription Shares"), representing approximately 3.33% of the issued share capital of the Target Company as enlarged by the allotment and issue of the Subscription Shares immediately upon completion of the transaction, at a total consideration of HK$10,000,000 (the "Subscription"). The Target Company is principally engaged in the open smart blockchain platform and disk storage banking technology business in relation to blockchain and decentralized cloud computing systems (the "Disk Storage Banking Business"). Upon the Subscription, the Company and the Target Company shall further enter into a cooperation agreement in relation to the customized development and design services on the Ethereum data blockchain Disk Storage Banking Business.

The Group is principally engaged in (i) design, development and sale of automation control systems and (ii) design, research and development, manufacture and sales of intelligent building system including video intercom and surveillance system for buildings. In light of

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the rise of the new economy activities in the recent decade, in particular the fintech business, the Company believes that the Subscription and the cooperation with the Target Company will mark the Group's first foray into the promising new economy and fintech sector and could bring favourable investment return to the Company, and therefore are fair and reasonable on normal commercial terms and are in the interests of the Company and its shareholders as a whole.

Pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), the Subscription is exempt from the requirements of Chapter 14 of the Listing Rules as all applicable percentage ratios under Rule 14.07 are below 5%.

By order of the Board

Synertone Communication Corporation

Han Weining

Executive Director and Chief Executive Officer

Hong Kong, 19 April 2021

As at the date of this announcement, the executive Director is Mr. Han Weining; and the independent non-executive Directors are Mr. Lam Ying Hung Andy, Mr. Wang Chen and Ms. Li Mingqi.

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