About PRODUCTIVE TECH Company

The company is engaged in advanced manufacturing of productivity-driven equipment used in the semiconductor and solar energy business, and also operates an oil and gas production project in China. The Company's financial statements are reported through the merger of the financial results of portfolio companies controlled by it, and the Company's interests in other uncontrolled portfolio companies are mainly classified as financial assets at fair value through profit and loss in the Company's financial statements. As of March 31, 2022, the Company has invested in a number of Chinese and overseas portfolio companies, mainly including Shanghai Pudat Semiconductor Equipment Co., Ltd. (“Shanghai Pudat”), Pudat Semiconductor Equipment (Xuzhou) Co., Ltd. (“Xuzhou Pudat”), and Xilingol League Hongbo Mining Development Co., Ltd. (“Hongbo Mining”). The main business activities of the major portfolio companies are set out below: Shanghai Pudat and Xuzhou Pudat were established on January 14, 2022 and February 22, 2022, respectively. They are all wholly-owned subsidiaries of the Company and are engaged in the manufacture and sale of (i) semiconductors (including but not limited to backside thin equipment, batch cleaning equipment, solvent equipment, SPM cleaning equipment and PECVD equipment with specifications of 6 inch, 8 inch and 12 inch) and (ii) solar energy (including but not limited to cleaning equipment and copper electroplating equipment) equipment. On April 18, 2022, Shanghai Pudat received a purchase order (“Purchase Order”) from a Guangdong customer (“Customer”) for two sets of single-piece wet processing equipment (“Cube products” or “products”) focusing on SiC backside cleaning applications. Hongbo Mining is a portfolio company wholly acquired by the Company in 2016. The company is an operating company engaged in the exploration, development, production and sale of crude oil in China. In the year ended March 31, 2022, its total sales volume was about 285,759 barrels, and total sales revenue was approximately HK$172,900,000. The company owns 100% of Hongbo Mining's shares, so all of its financial data is merged into the company's financial statements. Stonehold Energy Corporation (“Stonehold”) is a portfolio company in which the Company invested in the upstream crude oil sector in 2017. It has a world-class shale oil block in Eagle Beach, Texas, USA (“US”). Stonehold's total net production and revenue in fiscal year 2021 reached approximately 572,315 barrels of oil equivalent and US$29,200,000, respectively. The Company invests in Stonehold through the provision of term loans with a fixed annual interest rate of 8% (“Term Loans”). Furthermore, when the relevant assets are sold, the Company is also entitled to an amount equal to 92.5% of the net proceeds of sale. Investments in Stonehold (“Stonehold Investments”) are classified in the Company's financial statements as financial assets recorded at fair value through profit and loss. On June 9, 2022, the Company agreed to cash out all assets related to Stonehold's investment. The Company expects to cash out a total amount of HK$501,800,000. Jiangxi Jiufeng Energy Co., Ltd. (“Jiufeng”) is an LNG industry portfolio company invested by the Company in 2017. The company is a comprehensive clean energy service provider focusing on the midstream and terminal sectors of the gas industry. Jiufeng has since completed the initial public offering application and review process (“initial public offering”), and its shares began trading on the Shanghai Stock Exchange on May 25, 2021 (stock code: 605090). Jiufeng provides a wide range of clean energy and related products, such as liquefied natural gas (LNG), liquefied petroleum gas (LPG) and methanol, and provides comprehensive solutions for international energy supply and overall applications. The Company owns a minority interest in Jiufeng and classified the investment as a financial asset at fair value through profit and loss in the Company's financial statements. Zhunshida Energy Technology (Shanghai) Co., Ltd. (“Zhunshida Energy”) is an investment made by the Company in the LNG value chain in 2018. The company uses the LNGISO container model for LNG logistics services. Zhunshida Energy began its business in 2019 and has used ISO containers to provide stable logistics services to its customers to help them carry out LNG distribution business from domestic LNG terminals or purchase LNG from overseas markets. After the completion of all capital injections of Zhunshida Energy, the Company owned 39% of its shares and classified the investment as an interest in a joint venture company in the Company's financial statements. Weipin (“Weipin”) is a travel industry portfolio company acquired by the Company in 2019. The company mainly engages in online car-hailing services in China. The company actually holds 35.5% of Weipin's shares. Since June 21, 2021, the Company no longer controls the majority voting rights of Weipin's board of directors, and Weipin's financial results have since ceased to be consolidated into the Company's financial statements. Since then, the Company has classified Weipin's investment as an interest in a joint venture company.