The Board of KWG Living Group Holdings Limited announced that on 10 December 2021 (after trading hours), the Company and KWG Group Holdings Limited have entered into the New Publicity Planning Service Framework Agreement and New Marketing Channel Service Framework Agreement for a term commencing from 1 January 2022 to 31 December 2022. Term: 1 January 2022 to 31 December 2022. The term may, subject to compliance with relevant laws and regulations and the Listing Rules as well as the agreement of the parties, be extended or renewed.

Subject matter: The Group shall provide publicity planning services, such as promotion design, advertisement promotion and official account marketing for the residential properties developed by KWG Group and its associates. The relevant parties shall enter into specific publicity planning service agreement which set out the specific provisions of the services for a specific residential property, terms of which shall be consistent with the principal terms of the New Publicity Planning Service Framework Agreement in all material aspects. Pricing policy: Under the New Publicity Planning Service Framework Agreement, the price for services to be provided by the Group should be determined on arm's length basis, taking into account the nature, location and size of the relevant properties, the specific requirements of publicity strategy or method, the corresponding effort to be paid and expected cost (including staff costs, material and production costs, and administrative costs).

In addition, the price for the services to be provided by the Group shall be determined in the specific agreement and should be set, after arm's length negotiations with reference to the prevailing market rate and the price charged by the Group when providing similar services to Independent Third Parties. The terms of the services offered by the Group to KWG Group and its associates shall be no more favourable than those made available to Independent Third Parties with similar terms. Payment arrangement: The payment mechanism for all fees and payments due to the Group pursuant to the transactions contemplated under the New Publicity Planning Service Framework Agreement should be specified in the relevant specific agreement to be entered into by the parties.