China Frontier Technology Group — Capital/Financing Update 2020

Apr 2, 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 SUBSCRIPTION OF INVESTMENT FUND

The Board of the Company announces that, the Group subscribed for a certain portion of an investment fund with RMB32 million on 2 April 2020. The Fund is managed by Qianhai Century Fund Management Co., Ltd. as the Fund Manager.

For the Subscription, the relevant applicable percentage ratio (as defined under the Listing Rules) exceeds 5% but is less than 25%. Therefore, pursuant to the Listing Rules, the Subscription constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements but exempt from the shareholders’ approval requirement under the Listing Rules.

SUBSCRIPTION OF INVESTMENT FUND

The Company subscribed for a certain portion of an investment fund with RMB32 million on 2 April 2020, the principal terms of which are set out as follows:

Date of the subscription: 2 April 2020 Parties of the subscription: (1) Beijing Wisdom Sports Culture Co., Ltd.; (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

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SJ6785

Fund Code:

Investment strategy:

The Fund is mainly invested in “Jubao No.1 Private Investment Fund” managed by the Fund Manager. The subject fund is a private investment fund managed by the Fund Manager, which mainly invests in various monetary instruments, 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 (annualised):

Date of interest commencement: 3 April 2020 Maturity date of investment: 18 May 2020 Investment time limit: 45 days

REASONS FOR AND BENEFITS OF THE SUBSCRIPTION

The Group has been constantly looking for business opportunities to enhance the shareholders’ value while abiding to the internal investment policy of the Group. In light of the current low interest rates on bank deposit, the Directors of the Company are of the view that the Subscription is an ideal shortterm investment opportunity for the Group as this allows the Company to utilize its Renminbi surplus cash reserves more efficiently. The Company selects short-term wealth management products prudently with an aim to improve its efficiency on capital utilization, earn extra return on investment and combat inflation while not affecting the Group’s daily cash flows. After taking into account that the investment risks and potential returns of the Funds subscribed above are in line with the needs of the Company, the Board considers that the terms of the Subscription are on normal commercial terms, and are fair and reasonable and in the interest of the Company and its shareholders as a whole.

IMPLICATIONS UNDER THE LISTING RULES

On 16 March 2020, the Group subscribed for fund products managed by the Fund Manager for RMB6 million in cash. In accordance with the requirements of Rule 14.22 of the Listing Rules, the aforementioned subscription transaction shall be aggregated with this subscription transaction. For the Subscription, the relevant applicable percentage ratio (as defined under the Listing Rules) exceeds 5% but is less than 25% after the aggregation. Therefore, pursuant to the Listing Rules, the Subscription constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements but exempt from the shareholders’ approval requirement under the Listing Rules.

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GENERAL INFORMATION OF THE GROUP AND THE FUND MANAGER

The Company is an investment holding company. The Group is principally engaged in the provision of events operation and marketing services, sports services and advertising program and branding services in the PRC. Beijing Wisdom Sports Culture Co., Ltd (北京智美體育文化有限公司) is a wholly-owned subsidiary of the Company.

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, and its ultimate controlling shareholder is Mr. Yao Zhenhua. To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the fund manager and the ultimate beneficial owner are independent third parties of the Company and of the connected persons of the Company.

DEFINITIONS

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

“Board”	the board of Directors
“Company”	Wisdom Sports Group (智美體育集團), a company incorporated in
	the Cayman Islands with limited liability on 21 March 2012
“Directors”	the directors of the Company
“Fund Manager”	Qianhai CenturyFundManagement Co., Ltd.,	a company
	incorporated in the PRC with limited liability
“Group”	the Company and its subsidiaries
“Hong Kong”	the Hong Kong Special Administrative Region of the	PRC
“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,excludingHongKong,theMacau		Special
	Administrative Region of the PRC and Taiwan
“Stock Exchange”	The Stock Exchange of Hong Kong Limited
“RMB”	Renminbi, the lawful currency of the PRC

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“Subscription”

the transaction of the Company subscribing for a certain portion of an investment fund with RMB32 million, details are set out in this announcement

By Order of the Board Wisdom Sports Group Ren Wen

Chairlady and Executive Director

Hong Kong, 2 April 2020

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.

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