Newborn Town : PROPOSED ADOPTION OF SHARE OPTION SCHEME

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NEWBORN TOWN INC.

赤 子 城 科 技 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9911)

PROPOSED ADOPTION OF SHARE OPTION SCHEME

The board of directors (the "Board") of Newborn Town Inc. (the "Company", together with its subsidiaries, the "Group") is pleased to announce that it has resolved to propose the adoption of a share option scheme (the "Share Option Scheme") for the approval by the shareholders of the Company (the "Shareholders").

The Share Option Scheme is a share incentive scheme prepared in accordance with Chapter 17 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The purpose of the Share Option Scheme is to recognise and acknowledge the contributions to those who had made, may have made or will make contributions to the Group. The Share Option Scheme will provide those who are eligible an opportunity to have a personal stake in the Company with the view to achieving the following objectives: attract, retain and motivate talented employees to strive towards long term performance targets set by the Group and to provide them with an incentive to work better for the interest of the Group. The Scheme will link the value of the Company with the interests of the Participants, enabling the Participants and the Company to develop together and promote the Company's corporate culture.

The proposed adoption of the Share Option Scheme is subject to the approval of the Shareholders by way of an ordinary resolution at the forthcoming annual general meeting of the Company (the "AGM"). A circular containing, among other things, the notice of the AGM and details of the Share Option Scheme will be despatched to the Shareholders in accordance with the requirements of the Listing Rules, together with the notice of the Annual General Meeting and proxy form on or about 15 April 2021.

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As at the date of this announcement, the Share Option Scheme remains subject to the approval of the Shareholders. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Company's securities.

By order of the Board

Newborn Town Inc.

LIU Chunhe

Chairman

Beijing, 13 April 2021

As at the date of this announcement, the executive Directors of the Company are Mr. LIU Chunhe, Mr. LI Ping, Mr. YE Chunjian and Mr. SU Jian; and the independent non-executive Directors of the Company are Mr. PAN Xiya, Mr. CHI Shujin and Mr. HUANG Sichen.

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