China Information Technology Development Limited — Capital/Financing Update 2021

Oct 29, 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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(Incorporated in the Cayman Islands with limited liability) (Stock Code: 8178)

PROFIT WARNING ANNOUNCEMENT

This announcement is made by China Information Technology Development Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (the “ GEM Listing Rules ”) and the Inside Information Provisions (as defined under the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board of directors (the “ Board ”) of the Company wishes to inform the shareholders of the Company (the “ Shareholders ”) and potential investors that, based on the information currently available to the Board, it is expected that the Group will record a loss of not less than HK$20 million for the nine months ended 30 September 2021 (“ Third Quarter 2021 ”) as compared to a loss before tax of approximately HK$15 million for the corresponding period in 2020 (“ Third Quarter 2020 ”). Based on the information available to the Company immediately preceding the publication of this announcement, the Board believes that the loss is mainly attributable to the fact that (i) the research and development expenses for smart retail cloud platform and network security of IoT cloud platform of approximately HK$4,700,000 was incurred during the Third Quarter 2021; (ii) the Group’s business especially in the IT solutions and maintenance segment was adversely affected by the COVID-19 Pandemic. The loss in IT solutions and maintenance segment for the Third Quarter 2021 was approximately HK$11 million whereas for Third Quarter 2020, there was a segment profit of approximately HK$2.5 million. Besides, (iii) the Group recorded an unaudited fair value loss on securities investment of approximately HK$5.4 million for the three months ended 30 September 2021; whereas the Group recorded an unaudited fair value gain on securities investment of approximately HK$2.8 million for the three months ended 30 September 2020.

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The information contained in this announcement is only based on the preliminary assessment by the Board of the Company of the unaudited consolidated management accounts of the Group for Third Quarter 2021 and is not based on any figure or information which is finalised or reviewed by the audit committee of the Company. The Company is in the process of finalising the results of the Group for Third Quarter 2021. Actual financial results of the Group may be different from what is disclosed in this announcement. Shareholders and potential investors of the Company are advised to read carefully the announcement of the Company in relation to the results of the Group for the Third Quarter 2021.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board China Information Technology Development Limited Wong King Shiu, Daniel Chairman and Chief Executive Officer

Hong Kong, 29 October 2021

As of the date of this announcement, the Board comprises Mr. Wong King Shiu, Daniel (Chairman and Chief Executive Officer) and Mr. Chang Ki Sum Clark as executive Directors; Mr. Hung Hing Man, Mr. Wong Hoi Kuen and Dr. Chen Shengrong as independent non-executive Directors.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will be available on the Company’s website http://www.citd.com.hk and will remain on the “Latest Company Announcements” page on the GEM website at http://www.hkgem.com for at least 7 days from the date of its posting.

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