China Frontier Technology Group — Capital/Financing Update 2018

Dec 13, 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the content 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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WISDOM SPORTS GROUP 智美體育集團

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1661)

SUPPLEMENTAL ANNOUNCEMENT

DISCLOSEABLE TRANSACTION

ACQUISITION OF THE ENTIRE EQUITY INTERESTS IN FIRST AI SPORTS TECHNOLOGY (SHENZHEN) CO., LTD.

Reference is made to the announcement of Wisdom Sports Group (the “ Company ”) dated 23 November 2018 (the “ Announcement ”) in relation to the Equity Transfer Agreement entered into between the Purchaser and the Vendors in respect of the acquisition of the entire equity interest of the Target Company. Unless otherwise defined, capitalized terms used in this announcement shall have the same meaning as those defined in the Announcement.

In addition to the information provided in the Announcement, the Company would like to provide further information in relation to the information of the Target Company and make clarifications as follows.

FURTHER INFORMATION ON THE TARGET COMPANY

The net asset value of the Target Company as at 31 December 2016, 31 December 2017 and the six months ended 30 June 2018 was approximately RMB19,327,000, RMB26,153,000 and RMB32,850,000, respectively.

INFORMATION ON XINGLIAN LIHE*

The Target Company completed its acquisition of 51.02% of the equity interests (the “ Acquisition ”) in Xinglian Lihe Technology Company Limited* (北京興聯力合科技有限公司) (“ Xinglian Lihe ”) in September 2018. Xinglian Lihe is a technology company based in the PRC and is principally engaged

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in the rental of television broadcasting equipment and programme production. As the Acquisition was completed in September 2018, its financial information had not been consolidated with the financial information of the Target Company as disclosed in the Announcement.

The following table sets out certain unaudited financial information of Xinglian Lihe prepared in accordance with the accounting standards generally accepted in the PRC:

			Six months
	For the year ended		ended
	31 December	31 December	30 June
	2016	2017	2018
	RMB’000	RMB’000	RMB’000
	(unaudited)	(unaudited)	(unaudited)
Revenue	18,941	22,414	18,064
Net profit before income tax	433	885	3,396
Net profit after income tax	325	634	3,144
Total assets	5,416	13,055	28,134
Net assets	1,509	2,123	5,214

Save as disclosed above, all other information and content set out in the Announcement remain unchanged and shall continue to be valid for all purposes. This supplemental announcement is supplemental to and shall be read in conjunction with the Announcement.

By Order of the Board Wisdom Sports Group Ren Wen

Chairlady and Executive Director

Hong Kong, 13 December 2018

As at the date of this announcement, the executive directors of the Company are Ms. Ren Wen, Mr. Zhang Han, Mr. Song Hongfei and Ms. Hao Bin; and the independent non-executive directors of the Company are Mr. Chen Zhijian, Mr. Ip Kwok On Sammy and Mr. Jin Guoqiang.

• for identification purposes only

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