China Netcom Technology Holdings Limited — Capital/Financing Update 2016

Jun 17, 2016

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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VOLUNTARY ANNOUNCEMENT

The Board is pleased to announce that on 17 June 2016, Shenzhen Gaorong (a whollyowned subsidiary of the Company) entered into the Memorandum of Understanding with Hainan Xinsheng (an Independent Third Party).

This announcement is made by the Company on a voluntary basis.

The Board is pleased to announce that on 17 June 2016, Shenzhen Gaorong (a whollyowned subsidiary of the Company) entered into the Memorandum of Understanding with Hainan Xinsheng (an Independent Third Party). The principal terms of the Memorandum of Understanding are set out below:

• Parties: (i) Shenzhen Gaorong (a wholly-owned subsidiary of the Company); and

  • (ii) Hainan Xinsheng (an Independent Third Party).

Cooperation: The parties agreed to cooperate on the business development of the sales and related value-added services of KTV lottery in the Hainan Province.

Under the Cooperation:

• . Hainan Xinsheng shall be responsible for the arrangement of entering into the agreement with Hainan Sports Lottery Administrative Centre (海南省體育彩票管理中心) in relation to sale of sports lottery through KTV channels in Hainan Province;

• . Shenzhen Gaorong shall be responsible for providing the technology platforms, other relevant technology and documentation support for the KTV lottery sales; In addition, Shenzhen Gaorong shall be responsible for the promotion of KTV channel lottery sales and payment for the relevant expenses incurred by the KTV channel co-operation partners in lottery sales; and

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• . The way of allocation of income will be confirmed at the time of the entering into the formal co-operation agreement between the parties.

Term:

The Memorandum of Understanding will be expired upon the entering into the formal co-operation agreement.

BACKGROUND OF HAINAN XINSHENG

Hainan Xinsheng is a professional lottery operating company in Hainan Province, the PRC which has long co-operation history with Hainan Sports Lottery Administrative Centre (海南 省體育彩票管理中心). As at the date of this announcement, to the best of the Directors’ knowledge, information and belief and having made all reasonable enquiries, Hainan Xinsheng is an Independent Third Party.

REASONS FOR AND BENEFITS OF THE COOPERATION

Considering that Shenzhen Gaorong has entered into an agreement with 北京雷石世紀科技 有限公司 (Beijing Thunderstone Technology Limited*), the biggest provider of KTV technologies, platforms and music copyrights in the world, for sale of Chinese lotteries at the KTV bars/clubs it operates in China, the Directors are of the view that the Cooperation is consistent with the Group’s strategy to develop its lottery business and will benefit the Company and the Shareholders as a whole. The Directors consider the terms of the Memorandum of Understanding are fair and reasonable and the Cooperation is in the interest of the Company and Shareholders as a whole.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following words and expressions shall have the following meanings:

‘‘Board’’ the board of Directors ‘‘Company’’ China Netcom Technology Holdings Limited, a company incorporated in the Cayman Islands with limited liability and the issued shares of which are listed on GEM ‘‘Cooperation’’ the cooperation between Shenzhen Gaorong and Hainan Xinsheng as contemplated under the Memorandum of Understanding ‘‘Director(s)’’ the director(s) of the Company ‘‘GEM’’ the Growth Enterprise Market of the Stock Exchange ‘‘GEM Listing Rules’’ the Rules Governing the Listing of Securities on GEM ‘‘Group’’ the Company and its subsidiaries

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‘‘Hainan Xinsheng’’

• ‘‘Independent Third Party(ies)’’

  • 海南新生中彩科技有限公司 (Hainan Xinsheng Zhongcai Technology Co., Ltd.*), an Independent Third Party and a party to the Memorandum of Understanding third party(ies) independent of and not connected with the Company and its connected persons (as defined under the GEM Listing Rules)

• ‘‘Memorandum of Understanding’’

  • the memorandum of understanding entered into between Shenzhen Gaorong and Hainan Xinsheng, the particulars of which are disclosed in this announcement

• ‘‘PRC’’ the People’s Republic of China

• ‘‘Share(s)’’

  • ordinary share(s) of HK$0.005 each in the capital of the Company

• ‘‘Shareholder(s)’’ the holder(s) of the Shares

• ‘‘Shenzhen Gaorong’’ 深圳高榮財智科技有限公司 (Shenzhen Gaorong Caizhi Technology Company Limited*), a wholly-owned subsidiary of the Company and a party to the Memorandum of Understanding

• ‘‘Stock Exchange’’

The Stock Exchange of Hong Kong Limited

• for identification purpose only

By order of the Board

China Netcom Technology Holdings Limited Leung Ngai Man Chairman and Executive Director

Hong Kong, 17 June 2016

As at the date of this announcement, the executive Directors are Mr. Leung Ngai Man and Ms. Wu Wei Hua; and the independent non-executive Directors are Mr. Cai Wei Lun, Mr. Qi Ji and Ms. Xuan Hong.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules 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 remain on the ‘‘Latest Company Announcements’’ page of the GEM website at www.hkgem.com for a minimum period of 7 days from the date of its publication and on the Company’s website at www.chinanetcomtech.com.

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