China Frontier Technology Group — Capital/Financing Update 2020

Jun 5, 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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WISDOM SPORTS GROUP

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1661)

DISCLOSEABLE TRANSACTION RE-SUBSCRIPTION TO THE FUND

RE-SUBSCRIPTION TO THE FUND

Reference is made to the Company’s announcement dated 21 April 2020 (the “ Announcement ”). Unless otherwise stated, capitalized terms used herein shall denote the same meanings as those defined in the Announcement.

As Shenzhen Wisdom’s Subscription in the Fund has matured on 5 June 2020, the Board is pleased to announce that Shenzhen Wisdom has re-subscribed to the Fund with RMB40.0 million on even date.

IMPLICATIONS UNDER THE LISTING RULES

Pursuant to Rule 14.22 of the Listing Rules, as the Subscription and the Re-Subscription were entered into between Shenzhen Wisdom and the Fund Manager within a 12-month period, the Subscription and the Re-Subscription were considered and were aggregated as one transaction.

As one or more of the relevant applicable percentage ratios defined under Rule 14.07 in respect of the Aggregated Subscriptions exceed 5% but is less than 25%, the Re-Subscription constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to notification and announcement requirements under the Listing Rules.

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RE-SUBSRCRIPTION TO THE FUND

Reference is made to the Company’s announcement dated 21 April 2020. As Shenzhen Wisdom’s Subscription to the Fund has matured on 5 June 2020, the Board is pleased to announce that Shenzhen Wisdom has re-subscribed to the Fund with RMB40.0 million on even date.

The principal terms of the Re-Subscription are set out as follows:

Date of subscription: 5 June 2020 Parties involved: (1) Shenzhen Wisdom; and (2) Qianhai Century Fund Management Co., Ltd. Fund Manager: Qianhai Century Fund Management Co., Ltd. Fund custodian: Shenzhen Branch of China Minsheng Banking Co., Ltd. Name of the Fund: Baoying A-001 Private Investment Fund Fund code: SJ 6785 Investment strategy: The Fund invests in “Jubao No.1 Private Investment Fund”, which is managed by the Fund Manager. It invests in various monetary instruments such as bonds, bond funds, and other fixed incomes and fixed-class income products Characteristics of risk and The Fund does not guarantee to capital protection and minimum return: return Performance comparison 6.4% benchmark (annualized): Date of interest 5 June 2020 commencement: Investment time limit: 31 days

REASONS FOR AND BENEFITS OF THE RE-SUBSCRIPTION

The Group has been constantly looking for business opportunities to enhance shareholders’ value while abiding to the internal investment policy of the Group. In light of the current low interest rates on bank deposits and the stable return of the Fund, the Board is of the view that the Re-Subscription will enable the Company to continue to utilize its Renminbi surplus cash reserves more efficiently.

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As the Company is familiar with the Fund, its investment risks and potential returns, the Board considers that the terms of the Re-Subscription are on normal commercial terms, and are fair and reasonable and are in the interest of the Company and its shareholders as a whole.

INFORMATION OF THE GROUP AND THE PARTIES

The Group is a leading sports industry group in the PRC engaged in the operation and marketing of sports events and provision of sports services, with a special emphasis on the development and extension of the sports industry chain.

Shenzhen Wisdom is a company established under the laws of the PRC with limited liability and is a wholly-owned subsidiary of the Company. Shenzhen Wisdom is principally engaged in event organization and related services and investments in the PRC.

The business scope of the Fund Manager covers entrusted management of share investment fund, entrusted asset management and investment management. The sole shareholder of the Fund Manager is Shenzhen Jushenghua Company Limited* (深圳市鉅盛華股份有限公司), and its ultimate controlling shareholder is Mr. Yao Zhenhua* (姚振華).

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the Fund Manager and its ultimate beneficial owner are third parties independent of the Company and of the connected persons of the Company.

IMPLICATIONS UNDER THE LISTING RULES

Pursuant to Rule 14.22 of the Listing Rules, as the Subscription and the Re-Subscription were entered into between Shenzhen Wisdom and the Fund Manager within a 12-month period, the Subscription and the Re-Subscription were considered and were aggregated as one transaction.

As one or more of the relevant applicable percentage ratios defined under Rule 14.07 in respect of the Aggregated Subscriptions exceed 5% but is less than 25%, the Re-Subscription constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to notification and announcement requirements under the Listing Rules.

DEFINITIONS

Unless the context otherwise requires, the following expressions have the following meanings in this announcement:

“Aggregated Subscriptions” the Subscription and the Re-Subscription

“Board” the board of Directors of the Company

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“Company”	Wisdom Sports Group (智美體育集團), a company incorporated in
	the Cayman Islands with limited liability, the Shares of which are
	listed on the Main Board of the Stock Exchange
“connected persons”	has the same meaning ascribed to it under the Listing Rules
“Directors”	the directors of the Company
“Fund”	Baoying A-001 Private Investment Fund* (寶盈A-001號私募投資
	基金)
“Fund Manager”	Qianhai Century Fund Management Co., Ltd.* (前海世紀基金管理
	有限公司), a company established in the PRC with limited liability
	and is the manager of the Fund
“Group”	the Company and its subsidiaries
“Hong Kong”	the Hong Kong Special Administrative Region
“Listing Rules”	the Rules Governing the Listing of Securities on the Stock
	Exchange
“PRC”	The People’s Republic of China, for the purposes of this
	announcement, excluding Hong Kong, Macau and Taiwan
“Re-Subscription”	the re-subscription to the Fund by Shenzhen Wisdom as a result of
	the maturity of the Subscription, details of which are set out in this
	announcement
“RMB”	Renminbi, the lawful currency in the PRC
“Shenzhen Wisdom”	Shenzhen Wisdom Sports Industry Co., Ltd.* (深圳智美體育產業
	有限公司), a company established under the law of the PRC and is
	an indirect wholly-owned subsidiary of the Company
“Stock Exchange”	The Stock Exchange of Hong Kong Limited
“Subscription”	the subscription to the Fund by Shenzhen Wisdom, details of which
	are set out in the Company’s announcement dated 21 April 2020
	By Order of the Board
	Wisdom Sports Group
	Ren Wen
	Chairlady and Executive Director

Hong Kong, 5 June 2020

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As at the date of this announcement, the executive Directors of the Company are Ms. Ren Wen, Mr. Sheng Jie, 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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