Universal Star : ISSUE OF SUBCRIPTION SHARES UNDER GENERAL MANDATE

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UNIVERSAL STAR (HOLDINGS) LIMITED 星宇 ( 控股 ) 有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2346)

ISSUE OF SUBCRIPTION SHARES UNDER GENERAL MANDATE

PLACING AGENT

On March 24, 2021, the company announces under General Mandate which had been approved by the shareholders of the Company at the annual General meeting of the Company. They have entered into placing agreement with the placing agent, CNI Securities Group ("CNI"), pursuant to which CNI agrees to do its best on an individual basis (rather than joint in concert, nor joint in concert with individual). The benchmark is to place a maximum of 100 million placing shares at a price of HK$0.37 per share. The placing price is HK$0.37 per share.

Assuming that all the placing shares have been fully placed in accordance with the placing agreement, it is expected that the net proceeds from the placing after deducting the relevant costs and expenses to be borne by the company will be approximately HK$36 million. The company intends to use the net proceeds from the placing for business development or investment when opportunities arise, as well as for operating funds and general group purposes.

The Subscription Shares will be issued pursuant to the General Mandate and is not subject to Shareholders' approval. An application will be made by the Company to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Subscription Shares.

Completion of the Subscription and the issue of the Subscription Shares are subject to the conditions under the Subscription Agreements and may or may not take place. Shareholders and potential investors are advised to exercise caution when dealing in the Shares.

By Order of the Board

Universal Star (Holdings) Limited

Lyu Zhufeng

Chairman

Hong Kong, 24 March 2021

As at the date of this announcement, the Board comprises Mr. Lyu Zhufeng as the executive Director; Mr. Lu Qingxing as the non-executive Director; and Mr. Yan Aru, Mr. Lee Ming Tak and Mr. Tsang Chun Yiu as the independent non-executive Directors.