HKEX 863

Asia’s Leading Digital Asset and Technology Company

For Investors

Executive Summary

• BC Group has Asia’s most comprehensive digital asset platform. It provides technology, brokerage, exchange and custody services

• The platform meets institutional standards of compliance, with transparent documented trading rules, 3rd party market surveillance and comprehensive coin purity AML verification

• As the region’s only listed, ‘Big Four’ audited digital assets and blockchain company, BC Group is in prime position to capture institutional inflows into the soon-to-be regulated market

• Through its best-in-class Software-as-a-Service (SaaS) technology, BC Group has a unique distribution strategy allowing it access to multiple market segments and jurisdictions

• The company’s leadership team are pioneers in the digital asset sector, and have led successful projects and companies since entering the market in 2013

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Year Invented

Digital assets are virtual tokens that represent:• Store of value • Medium of exchange• Securities

Current Market Cap

Sources: HKEX website, Bank of International Settlement (BIS), The Institute of International Finance, CoinMarketCap as of Nov, 2019

US$7.6+ US$217+ US$73+ US$250+ US$4.66+US$192+

Opportunity to Invest in the First New Asset Class in 30 Years

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Bob Greifeld, Chairman & CEO of Nasdaq 2003-2016

100% of the stocks and bonds on Wall Street

will be tokenized [in the next five years]

Regulation of Blockchain and Digital Assets is a Global TrendIn June. 2018, the FATF released requirements for all of its 39 member jurisdictions to introduce licensing and SWIFT- like AML/CTF obligations.

This has led to the emergence of licensing frameworks for digital asset business as regulated financial intermediaries, providing access to traditional market players.

In Nov. 2019, the SFC created a regulatory framework to licence digital asset trading platforms in Hong Kong.

In Nov. 2019, the SFC issued a terms and conditions paper on digital asset management.

Japan was one of the earliest countries in advancing the regulations in digital assets.

In September of 2017, JFSA required all digital asset exchanges to obtain licenses. A total of 19 licenses have been granted to date.

Singapore is emerging as a global digital asset hub as MAS takes a supportive approach to regulations.

MAS applies existing legal frameworks where possible and is reported to be proactively working on creating a more robust framework.

The US has multiple regulatory bodies with oversight over digital assets, with additional clarity forthcoming from the SEC and CFTC.

State governments have also been proactive in establishing regulations. Regulations have invited the biggest financial players to enter the market.

In July 2018, the FCA included digital asset companies in regulatory sandbox and has been in consultation with traditional and digital asset players.

The FCA also provided clarity on AML/KYC requirements and tax-treatment.

In early 2018 the German Ministry of Finance confirmed digital assets as a legal method of payment and provided favourable tax treatment among EU.

Germany is engaging other EU markets to harmonize regulations.

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Traditional Securities Will Convert to Digital Assets – Growth Will be Massive

Global Value by Asset Class, US$

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Anticipated Growth of Digital Asset Securities

$192BAppx size of the digital asset value today

Capturing 1% market share of the traditional asset classes over the next 5 years will translate into

57x of growth for digital assets

Real Estate Market$217 Trillion

Fixed Income$250 Trillion

Derivatives Market$544 Trillionin notional value

Total: $1,161 Trillion

*

Equity Market$73 Trillion

Est. Size of the Digital Asset

Securities Market by 2024

$11 Trillion+

FX market$77 TrillionIn notional value

AdvertisingBusiness park management

services

TRADITIONAL BUSINESSESOSL - DIGITAL ASSET PLATFORM

CustodyExchangeBrokerage

BC Group Structure and Services Strategic Focus on Digital Assets

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The Platform of Choice for the Digital Asset Economy

• Pioneer in digital assets and technology, building the next generation of Asia's capital markets

• Setting standards for performance, security and compliance

Asia’s first publicly listed digital asset company

(HKEX: 863)

Industry leading technology, including

one of the world’s fastest trading engines

Audited by a Big-Four accounting firm and

utilizes robust compliance and risk controls

First in Asia to launch insured custody

solutions for both cold and hot wallets

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Unique Digital Asset Platform is Institutionally Focused and Provides Deep Liquidity

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BC Group Digital Asset Platform

Brokerage

Custody

• OTC trading services built for institutions and professional investors• Lending products• Spot trading• Intelligent Request for Quote (iRFQ) trading• iRFQ technology available as SaaS• Bespoke token services and secure wallets

• Proprietary security infrastructure for institutional-level safety• High-security vaults equipped with certified military grade technology, state-of-the-art encryption• 24/7 surveillance, dual control processes, • and private key protection in line with industry best practice• Insured hot and cold wallets

Exchange

• Secure and frictionless global trading of digital assets with deep liquidity• Multi-currency, multi-token• High standards of compliance, 24/7 live customer support• Compelling trading block sizes and tight spreads• Diverse retail and institutional flows• One of the world’s fastest trading engines• Exchange technology available as SaaS

platform users10+ signed corporate contracts

around the world

330k+ US$5 billion+

in platform trading volume*

Customers and partners in more

than 50 countries

*Annualized as of June 2019

Digital Asset Platform Highlights

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Delivering on our Digital Asset Strategy

H1 2019 revenues up

29% YoYRMB85 million

Digital assets reached 49% of total revenue -

the Group’s largest revenue

contributor

Digital asset revenues up386% HoH to

RMB41.6 millionin H1 2019

Digital asset platform business

was the main driver of this growth

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Digital Assets Milestones & Roadmap

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▪ First to submit application for SFC digital asset trading platform licence in Hong Kong

▪ Singapore office opened, token products offered

▪ Custody supported launch of Asia’s first bitcoin tracker fund – the Liberty Bitcoin Fund

▪ Signed white-label partnerships with MINE in Australia, and BitPrime in New Zealand

▪ Launched first-in-Asia insured digital custody service

▪ Launched next-gen digital asset exchange for professional investors

▪ Generated SaaS revenues of RMB2.1 million in H1 2019

▪ RMB39.5 million in trading services revenue for H1 2019

▪ Appointed Big-Four firm as independent auditor

▪ Launched the digital asset business with addition of 150 staff with expertise in the blockchain industry

▪ Launched digital asset trading service under the industry-leading OSL brand

▪ Established corporate and technical infrastructure for SaaS offering

▪ Secured strategic investment by the largest proprietary trading firm in the world

▪ Client Acquisition focus

▪ Launch institutional banking white-label clients

▪ Increase institutional inflows as regulated entity

▪ Improve margins from increased scale

H2 2018 H1 2019 H2 2019 H1 2020 onwards

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Market-Leaders, with Unrivalled Global Scope and Capabilities

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SaaS (exchange and iRFQ)+ Shared Liquidity

Exchange

Insured Custody

Brokerage + Deep Liquidity

Big 4 Auditor Appointed

Listed Company

RFQ API

]]]][[]] ]]]][[]]

(#1 in Asia)

(via Remixpoint)

(#1 in Asia)

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Ken LoDeputy Chairman20+ years of experience as an entrepreneur and management consulting, including Verizon, BT, Accenture and the Bank of Montreal

Dave Chapman Executive Director

15+ years of experience in senior roles at HSBC, Credit Suisse, Barclays Capital, ABN AMRO and Bear Stearns

Julia Pang

20+ years of experience at international banks, including Standard Chartered, Citibank, ANZ and Banco Santander Asia Pacific

OSL Chief Operating Officer

Steve ZhangChief Financial Officer

15+ years of experience at leading technology and financial services firms including iTutorGroup, KingdeeInternational, HSBC and Macquarie

20+ years of experience at global leading organizations in financial services IT, including at HSBC and Merrill Lynch

Wayne Trench

Usman AhmadChief Information Officer

Marek Sikora

20+ years of experience in risk management institutions including as CRO of CLSA and Head of Risk Management at Calyon Asia

Chief Risk Officer

Hugh MaddenChief Executive Officer18+ years of experience in technology and finance, including with HSBC, CBA, State Street and Lloyd’s Bank

Nathan SimmonsChief Compliance Officer15+ years of experience specialized in financial legal affairs and compliance, including senior roles at Octagon Strategy, Nova Pacific Group, Dorsey & Whitney, HMRC and the Australian Government

Phillip Pon

20+ years of experience at leading finance and consulting firms including KKR, McKinsey & Company, GLG and Egon Zehnder

Chief Operating Officer

Gary Tiu Ka ChunHead of Regulatory Affairs

20+ years of experience as corporate legal counsel, including at Yunfeng Financial Group, Cantor Fitzgerald, Macquarie and CITIC Capital

20+ years of experience as an entrepreneur and in senior roles at Morgan Stanley and Macquarie Bank

OSL Chief Executive Officer

World-Class Leadership team

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Mr. Johnson KoExecutive DirectorA securities industry veteran, Ko is also the Chairman of Reorient Financial Markets Limited and Deputy Chairman of HK-listed Frontier Services Group Limited

Lawrence Chia Non-Executive Director30+ years of experience in initial public offerings, mergers and acquisitions and corporate finance.

Current CEO of the Samling Group of Companies, previously served as Greater China CEO for Deloitte.

Ken LoDeputy Chairman20+ years of experience as an entrepreneur and management consulting, including Verizon, BT, Accenture and the Bank of Montreal

Gary Tiu Ka Chun

20+ years of experience as corporate legal counsel, including at Yunfeng Financial Group, Cantor Fitzgerald, Macquarie and CITIC Capital

Executive DirectorMr. David Chau Non-Executive Director

CEO of CEN – 1 Partners Limited. Chau led the M&A division of Deloitte Hong Kong and is currently a member of the Hong Kong Securities Institute

Benedict Tai Non-Executive Director

MD and co-founder of Latitude Capital Group, Tai is a seasoned investment banker in the technology, media and teleco sectors

Dave Chapman

15+ years of experience in senior roles at HSBC, Credit Suisse, Barclays Capital, ABN AMRO and Bear Stearns

Executive DirectorHugh Madden

18+ years of experience in technology and finance, including with HSBC, CBA, State Street and Lloyd’s Bank

Executive Director

Board of Directors

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Summary

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§ The financial services ecosystem is transforming and mass adoption of digital assets by retail and institutional investors is underway

§ BC Group stands apart globally as the only professional, compliant platform positioned to access emerging and new digital asset revenue streams

BC Group: The Trusted Gatekeeper to the Digital Asset Economy

Industry leading AML / KYC and security

Insurance on digital assets by global leading provider

Comprehensive coin purity

Listed on HKEX

Audited by Big Four firm

Applied for SFC digital asset trading licence

(additional applications forthcoming in other markets)

World’s fastest trading engine

Deep liquidity pools

Leading-edge white label SaaS

Digital asset pioneers

Leaders in financial services, technology and risk / compliance

Established board of directors with multi-sector expertise

Ahead of the curve in governance Transparent, regulated Industry best

technology and products Unrivalled team of experts

Disclaimer

The information, statements and opinions contained in this document are confidential, legally privileged and intended solely for the individual or entity to whom they are addressed.This confidential overview (the “Overview”) has been prepared by BC Group (“BC Group” or the “Group”) solely for information purposes. This Overview contained herein has beenprepared to assist the recipient in deciding whether to proceed with further analysis of a potential transaction relating to the Group and does not purport to be all-inclusive or tocontain all of the information a prospective or existing recipient may desire. The Group reserves the right to amend to replace the Overview at any time, and undertakes noobligation to update the Overview or the provide the recipient with access to any additional information. In all cases, interested parties should conduct their own investigation andanalysis of the Group, its businesses, prospects, and financial conditions. The Group makes no representation or warranty, express or implied, as to the accuracy or completenessof this Overview or the information contained herein, and shall have no liability for the information contained in, or any omissions from this Overview, or any of the written, electronic,or oral communication transmitted to the recipient as from the date of his or her receipt of this Overview. Each person should have make his or her own independent assessment ofthe merits of any transaction and should consult their own professional advisors. This Overview does not constitute an offer or invitation to subscribe for or purchase any securities,and neither this Overview nor anything contained herein shall form the basis of any contract or commitment whatsoever. The recipient shall hold the Group harmless of all liabilities,whether arising in contract, tort, or otherwise, for any losses, liabilities, damages, expenses, or costs arising, either direct or consequential, from or in connection with the use of thisOverview and/or the information herein.

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