7Road Holdings Limited — M&A Activity 2020

Apr 28, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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7Road Holdings Limited 第七大道控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 797)

VOLUNTARY ANNOUNCEMENT LETTER OF INTENT IN RESPECT OF A POTENTIAL ACQUISITION

This announcement is made by 7Road Holdings Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) on a voluntary basis.

LETTER OF INTENT IN RESPECT OF THE POTENTIAL ACQUISITION

The board (the “ Board ”) of the directors (the “ Directors ”) of the Company is pleased to announce that, on 17 April 2020, the Company (as the potential buyer) entered into a letter of intent (the “ LOI ”) with the potential vendors (the “ Potential Vendors ”) in relation to the potential acquisition (the “ Potential Acquisition ”) of the entire equity interest of Beijing Locojoy Technology Co., Ltd.* (北京樂動卓越科技有限公司) (“ Locojoy ”).

INFORMATION ABOUT THE POTENTIAL VENDORS

The Potential Vendors are the existing shareholders of Locojoy, holding the entire equity interest of Locojoy. To the best of the Director’s knowledge, information and belief and having made all reasonable enquiries, the Potential Vendors are the third parties independent from the Company and its connected persons (as defined under the Rules (the “ Listing Rules ”) Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”)).

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INFORMATION ABOUT LOCOJOY

Locojoy is a limited company established under the laws of the People’s Republic of China (the “ PRC ”), principally engaged in development and operation of online games. It is a well-known high-quality game research and development enterprise in the industry, and is widely known in the industry for its strong IP operation ability and research and development ability. It has produced a number of well-known games, such as “I’m MT” （我叫MT）, with impressive records. In addition to its remarkable performance, Locojoy also benefits from the solid, experienced and productive team of talents, who are absorbing themselves in the development of a number of new games with great potential.

REASONS FOR ENTERING INTO THE LOI

As Locojoy is principally engaged in the development and operation of online games and has produced several well-known games with impressive records. The Directors believe that the Potential Acquisition is in line with the principal business activities of the Group and the Company’s strategy to selectively acquire and invest in game developers and studios to expand the Company’s game portfolio and strengthen the Company’s game development capacities. The LOI will help the Company and the Potential Vendors to establish a clear understanding in relation to the Potential Acquisition and accelerate related works.

GENERAL

The Board wishes to emphasize that the Potential Acquisition is subject to, among other things, the execution of a formal sale and purchase agreement, the terms and conditions of which are yet to be definitively agreed. As such, the Potential Acquisition may or may not proceed. If the Potential Acquisition materializes, the Board considers that it may constitute a discloseable transaction of the Company or above under Chapter 14 of the Listing Rules. The Company will comply with the disclosure and approval requirements under the Listing Rules as and when appropriate. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board 7Road Holdings Limited Meng Shuqi Chairman

Wuxi, the PRC 27 April 2020

As at the date of this announcement, the executive Directors are Mr. Meng Shuqi, Mr. Li Zhengquan and Mr. Yang Cheng; and the independent non-executive Directors are Mr. Xue Jun, Ms. Li Yiqing and Ms. Wang Ying.

• For identification purpose only

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