SOS Limited (SOS) Announces Entry into a Joint Venture Agreement with Ronghe's Affiliate Aiming to Establish a Supercomputing Center in Qingdao

March 29, 2021 9:01 AM EDT

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SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today that its wholly-owned subsidiary SOS Information Technology Co., Ltd. has entered into a joint venture agreement with Qingdao Ronghe Finance Holding Group Co., Ltd. ("Ronghe Finance") to form a new joint venture, SOS Ronghe Digital Technology Co., Ltd. ("SOS Ronghe"). SOS Ronghe Digital Technology Co., Ltd received its business license on March 27, 2021

Ronghe Finance is an affiliate of Qingdao West Coast New Area Ronghe Holding Group Co., Ltd, a large state-owned enterprise in Qingdao Shandong Province, China. Pursuant to the joint venture agreement, both parties are to contribute their resources to establish a supercomputing center in Qingdao. The registered capital of the joint venture will be approximately $9,174,000, of which the Company will contribute 51% and Ronghe will contribute 49%. SOS has the right to appoint two of the three directors, the CEO and the CFO of the joint venture.

The mission of the joint venture is to establish the first large-scale Supercomputing Center in Qingdao and become a leading data and supercomputing and R&D base in China. SOS-Ronghe is expected be primarily focused on the following fields: cloud computing, high performance computing, big data, blockchain-based asset and cryptocurrency activities.

Yandai Wang, CEO of SOS Limited commented, "we believe our joint venture with Ronghe is a key infrastructure investment focused on blockchain and big data, which will be a growth engine for both SOS and Ronghe."

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