MECOM Power and Construction : VOLUNTARY ANNOUNCEMENT - MEMORANDUM OF UNDERSTANDING IN RELATION TO POTENTIAL ACQUISITION OF MINORITY EQUITY INTEREST IN A EV BUSINESS COMPANY

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MECOM POWER AND CONSTRUCTION LIMITED ዦঐܔணછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1183)

VOLUNTARY ANNOUNCEMENT

MEMORANDUM OF UNDERSTANDING IN RELATION TO POTENTIAL ACQUISITION OF MINORITY EQUITY INTEREST

IN A EV BUSINESS COMPANY

This is a voluntary announcement made by MECOM Power and Construction Limited (the "Company", together with its subsidiaries, the "Group") to provide the shareholders and potential investors of the Company an update on the latest business development of the Group.

MEMORANDUM OF UNDERSTANDING

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that on 8 March 2021, the Company entered into a memorandum of understanding ("MOU") with a company (the "Target Company", together with the Company, the "Parties") incorporated in the People's Republic of China (the "PRC"). The Target Company is engaged in system design and manufacturing of electric vehicle ("EV") charging facilities and the management of operating platforms. Subject to discussion and negotiation and the signing of definitive agreement(s) with the Target Company, the Group intends to acquire no more than 20% equity interest in the Target Company (the "Potential Acquisition").

The MOU shall remain in effect for up to eight months from the date of the MOU and during which the Parties will negotiate for the consideration of the Potential Acquisition. The MOU does not create legally binding obligations on the Group to complete the Potential Acquisition.

REASONS FOR AND BENEFITS OF ENTERING INTO THE MOU

According to the information provided by the Target Company, the Target Company possesses top research and development experience in the new energy industry. It has been awarded over 30 patents on its inventions up to May 2020. The Target Company has a wide range of global co-operative partners and customers, such as automobile manufacturers, electronic product manufacturers and property developers. It is well-known in developing integrated customised services ranging from EV charging infrastructure, software as well as operating platforms. The Directors consider that the Potential Acquisition is in line with the business objectives of the Company and signifies the furtherance of the Group's initiative into the EV charging business, thereby presenting opportunities for the Group's long-term development.

Up to the date of this announcement, the Group has entered into three five-year contracts for undertaking EV charging projects in certain residential communities in Zhongshan City and Guangzhou City, Guangdong Province, the PRC, covering up to a total of 2,953 parking spaces. The Target Company's patented technology and successful experiences in installing charging facilities in the PRC and European cities may allow the Group to speed up the development and operation of installing charging piles at higher cost efficiency. The Directors expect great synergy and commercial benefits for the Parties with their possible joint efforts in developing EV charging projects in the Guangdong-Hong Kong-Macao Greater Bay Area.

GENERAL

The Board wishes to emphasise that the Potential Acquisition contemplated under the MOU may or may not proceed and that the Parties have not entered into a legally binding agreement in relation to the transactions contemplated under the MOU as at the date of this announcement. If the transactions contemplated under the MOU materialise, the Group will make further announcement(s) as and when appropriate in accordance with the Rules Governing the Listing of Securities on the Stock Exchange.

Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.

By Order of the Board

MECOM Power and Construction Limited

Kuok Lam Sek

Chairman

Hong Kong, 8 March 2021

As at the date of this announcement, the executive Directors are Mr. Kuok Lam Sek and Mr. Sou Kun Tou, and the independent non-executive Directors are Ms. Chan Po Yi, Patsy, Mr. Cheung Kiu Cho, Vincent and Mr. Lio Weng Tong.