China Frontier Technology Group — Capital/Financing Update 2021

Jul 5, 2021

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 INVESTMENT FUND

The Board is pleased to announce that, on 5 July 2021, Beijing Wisdom Sports Culture, a whollyowned subsidiary of the Company, subscribed for a certain portion of an investment fund with RMB50 million. The Investment Fund is managed by Ningbo Guanshi as the fund manager.

IMPLICATIONS UNDER THE LISTING RULES

As previous subscriptions were entered into between Beijing Wisdom Sports Culture and the Fund Manager within a 12-month period, the Subscription and the Previous Subscriptions were considered and were aggregated as one transaction, pursuant to Rule 14.22 of the Listing Rules.

As one or more of the relevant applicable percentage ratios defined under Rule 14.07 of the Listing Rules in respect of the Aggregated Subscriptions exceed 5% but is less than 25%, the Subscription, when aggregated with the Previous Subscriptions, 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.

SUBSCRIPTION OF INVESTMENT FUND

The Board is pleased to announce that on 5 July 2021, Beijing Wisdom Sports Culture, a whollyowned subsidiary of the Company, subscribed for a certain portion of an investment fund with RMB50 million, the principal terms of which are set out as follows:

Date of the Subscription:

5 July 2021

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Parties:

(1) Beijing Wisdom Sports Culture; and

(2) Ningbo Guanshi

Fund manager:

Ningbo Guanshi

Fund custodian:

The Tianjin branch of China Merchants Bank

Name of the fund:

Ningbo Guanshi Shunshi No.6 Private Investment Fund

Investment strategy:

The Investment Fund will invest in various monetary instruments and products. The investment capital of the Subscription will be used to invest in bonds with a credit rating of AA+, which are issued by Sinic Real Estate Group Co., Ltd.,

Characteristics of risk and return: The Subscription does not guarantee to capital protection and minimum return Performance comparison benchmark 7.5% (annualized): Date of interest commencement: 7 July 2021 Maturity date of investment: 6 December 2021 Investment time limit: Five months

REASONS FOR AND BENEFITS OF THE 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, the Board is of the view that the Subscription is an ideal short-term investment opportunity for the Group as this allows the Company to utilize its Renminbi surplus cash reserves more efficiently.

The Group 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 consideration the investment risks and potential returns of the Subscription 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 are in the interest of the Company and its shareholders as a whole.

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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.

Beijing Wisdom Sports Culture is a company established under the laws of the PRC with limited liability and is a wholly-owned subsidiary of the Company. Beijing Wisdom Sports Culture is principally engaged in organizing sports events and related services.

Ningbo Guanshi is a company established under the laws of the PRC with limited liability and is an investment management company based in the PRC. To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, Ningbo Guanshi is owned as to 70% by Ms. Sun Hui and 30% by Mr. Wang Lin.

The Tianjin branch of China Merchants Bank is a licensed bank established under the laws of the PRC and is principally engaged in the provision of banking and related financial services.

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, each of Ningbo Guanshi, the Tianjin branch of China Merchants Bank and its ultimate beneficial owners are third parties independent of the Company and its connected persons.

IMPLICATIONS UNDER THE LISTING RULES

As previous subscriptions were entered into between Beijing Wisdom Sports Culture and the Fund Manager within a 12-month period, the Subscription and the Previous Subscriptions were considered and were aggregated as one transaction, pursuant to Rule 14.22 of the Listing Rules.

As one or more of the relevant applicable percentage ratios defined under Rule 14.07 of the Listing Rules in respect of the Aggregated Subscriptions exceed 5% but is less than 25%, the Subscription, when aggregated with the Previous Subscriptions, 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 Previous Subscriptions

“Beijing Wisdom Sports Beijing Wisdom Sports Culture Co., Ltd.* (北京智美體育文化有限 Culture” 公司), a company incorporated in the PRC with limited liability and is a wholly-owned subsidiary of the Company

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“Board”	the board of Directors of the Company
“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 Manager”	Ningbo Guanshi Investment Management Company Limited* (寧波
	觀石投資管理有限公司), a company incorporated in the PRC with
	limited liability
“Group”	the Company and its subsidiaries
“Hong Kong”	the Hong Kong Special Administrative Region
“Investment Fund”	the investment fund managed by the Fund Manager named as
	Ningbo Guanshi Shunshi No.6 Private Investment Fund* (寧波觀石
	順時6號私募證券投資基金)
“Listing Rules”	the Rules Governing the Listing of Securities on the Stock
	Exchange
“Previous Subscriptions”	the subscriptions for a certain portion of an investment fund
	managed by the Fund Manager, which does not constitute a
	discloseable transaction of the Company
“PRC”	The People’s Republic of China, for the purposes of this
	announcement, excluding Hong Kong, Macau and Taiwan
“RMB”	Renminbi, the lawful currency in the PRC
“Stock Exchange”	The Stock Exchange of Hong Kong Limited

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“Subscription”

the subscription for a certain portion of the Investment Fund with RMB50 million, details of which are set out in this announcement

By Order of the Board Wisdom Sports Group Ren Wen Chairlady and Executive Director

Hong Kong, 5 July 2021

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 Guoqing.

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