China Energy Storage Technology Development Limited — M&A Activity 2020

Apr 8, 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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Link-Asia International Co. Ltd. 環 亞 國 際 實 業 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock code: 1143)

VOLUNTARY ANNOUNCEMENT

IN RELATION TO THE POTENTIAL ACQUISITION OF SHARES IN AN AMERICAN KOL MARKETING PLATFORM COMPANY

This announcement is made voluntarily by Link-Asia International Co. Ltd. (the ‘‘Company’’), together with its subsidiaries, the ‘‘Group’’).

THE MEMORANDUM OF UNDERSTANDING

The board of directors (the ‘‘Board’’) of the Company is pleased to announce that the Company entered into a non-legally binding memorandum of understanding (the ‘‘MOU’’) with Impressed Inc. (the ‘‘Target Company’’) and its shareholders (the ‘‘Potential Vendors’’) on 8 April 2020.

Pursuant to the MOU, since the parties reached a mutual understanding that: (i) the market of internet key opinion leader (the ‘‘KOL’’) economy is developing rapidly especially following the outbreak of novel coronavirus COVID-19 worldwide; (ii) a great number of Chinese advanced enterprises are developing their overseas market, especially the enterprises producing anti-COVID-19 related health products; and (iii) the parties recognise that the Target Company has complementary advantages in the cross-border internet KOL Software as a Service (the ‘‘SaaS’’) industry, the Company intends to acquire certain number of shares in the Target Company (the ‘‘Proposed Acquisition’’). The Company shall conduct due diligence of the Target Company within 60 days from the date of the MOU. Upon completion of the due diligence and to the satisfaction of the Company, the Company will sign a formal sale and purchase agreement with the Potential Vendors.

The principal terms and conditions of the MOU are not intended to be legally binding on the parties in respect of the Proposed Acquisition until the signing of the formal sale and purchase agreement.

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INFORMATION ABOUT THE COMPANY AND THE TARGET COMPANY

The Company was incorporated in the Cayman Islands with limited liability and was listed on the Main Board of The Stock Exchange of Hong Kong Limited. The Group is principally engaged in (i) electronic manufacturing services; (ii) marketing and distribution of communications products; and (iii) securities and other asset investments.

Based on the information provided by the Target Company, it was incorporated in the United States of America. As a global internet KOL SaaS platform, the Target Company links global KOLs and China’s advanced merchants based on artificial intelligence and big data analysis technology, and has become a leading company to support Chinese advantaged enterprises to develop overseas marketing. The Target Company has accumulated more than 2.4 million internet KOLs’ data and its scalable big data platform can processes billions of social media entries in real time. The Target Company has become a channel for a large number of China’s advanced merchants to access resources of 2.4 million global internet KOLs on social media platforms such as Instagram, YouTube, Twitch. The Target Company could not only be able to enhance product promotion and global influence of China’s products, but also achieve effective international marketing. Meanwhile, with the assistance of the Target Company, the internet KOLs in the United States of America are able to monetise their intellectual property value, and build positive and effective cooperation with manufacturers, especially advanced enterprises in the PRC, through the platform.

The Board is of the view that the dominant position of the Target Company in the crossborder internet KOL SaaS platform industry can support advanced enterprises and products in the PRC to build a new marketing ecosystem and connect internet KOL business, especially can provide marketing support for enterprises and products related to antiCOVID-19 with demands of export, which is in line with the group strategy to build a leading cross-border value chain service platform and benefits to the transformation and upgrading of business of the Group.

GENERAL

To the best of the directors’ knowledge, information and belief having made reasonable enquiries, the Target Company and its ultimate beneficial owner(s) are third parties independent of the Company and its connected person(s).

As at the date of this announcement, the terms and conditions of the Proposed Acquisition are still being negotiated and no legally binding agreement has been entered into. The Proposed Acquisition, if materialised, may or may not constitute notifiable transaction for the Company under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’). Further announcement(s) will be made by the Company as and when appropriate in compliance with the Listing Rules.

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As the Proposed Acquisition may or may not proceed, Shareholders and potential investors of the Company are reminded to exercise caution when dealing in the Shares.

By order of the Board Link-Asia International Co. Ltd. Lin Dailian

Chairman and executive Director

Hong Kong, 8 April 2020

As at the date of this announcement, the Board comprises Mr. Lin Dailian (Chairman), Mr. Duan Chuanhong, Mr. Xia Xiaobing and Mr. Wang Guozhen as executive Directors; Mr. Bao Jinqiao and Mr. Li Huiwu as independent non-executive Directors.

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