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

Feb 26, 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 POTENTIAL ACQUISITION OF SHARES IN A SINGAPOREAN 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 Conversant Pte. Ltd. (the ‘‘Target Company’’) and its shareholders (the ‘‘Potential Vendors’’) on 26 February 2020.

Pursuant to the MOU, since the parties reached a mutual understanding and recognised that many of Internet companies in China have developed their businesses abroad and the digital economy in Southeast Asia is at its golden stage of immense growth, the Company intends to acquire and the Potential Vendors intend to dispose of 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.

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.

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Based on the information provided by the Target Company, it was incorporated in Singapore and is principally engaged in the content distribution network (the ‘‘CDN’’) business in Southeast Asia. The Target Company is a leading enterprise in the Singapore’s digital economy and is a top player in the Southeast Asia’s CDN industry. It focuses on providing innovative digital media solutions, such as telecommunications service providers, new content media and advanced Internet enterprises, and providing its efficient network connection services in Southeast Asia. The Target Company has 28 leading telecommunications operation partners in eight countries in Southeast Asia. It has set up approximately one hundred POP websites and owns various top telecommunications operators. A number of renowned content media and Internet cloud enterprises in China and Southeast Asia are also customers of the Target Company. The Target Company is also able to provide modular, flexible and end-to-end services for distributors of such new digital economy, such as video applications, e-commerce and online games; thus enabling those distributors to manage and protect digital content and to access those services in any devices anywhere across Southeast Asia.

The Board is of the view that the Proposed Acquisition is expected to bring synergies to the Group’s business in the electronic and telecommunications fields and assist in strengthening the Group’s business network in the emerging markets of Southeast Asia, thereby enhancing the Group’s role in connecting China and Southeast Asian countries.

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 Listing Rules. Further announcement(s) will be made by the Company as and when appropriate in compliance with the Listing Rules.

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

Hong Kong, 26 February 2020

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

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