CMON Limited — Capital/Financing Update 2019

Aug 5, 2019

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.

瀋陽公用發展股份有限公司 Shenyang Public Utility Holdings Company Limited (a joint stock limited company incorporated in the People’s Republic of China)

(Stock code: 747)

TERMINATION OF DISCLOSEABLE TRANSACTION ACQUISITION OF PROPERTY IN THE PRC

Reference is made to the announcement of Shenyang Public Utility Holdings Company Limited (the “ Company ”) dated 9 February 2018 (the “ Announcement ”) in relation to the acquisition of the Property. Terms used herein shall have the same meanings as those defined in the Announcement unless the context herein requires otherwise.

Pursuant to the Property Acquisition Agreement, the Vendor and the Purchaser shall have completed and performed all of their respective obligations under the Property Acquisition Agreement no later than 9 August 2018 (the “ Long Stop Date ”), or such later date as the parties may agree in writing.

On 17 August 2018, the Vendor entered into a supplemental agreement with the Purchaser to extend the Long Stop Date to 31 December 2018 (the “ Supplemental Agreement ”). On 18 March 2019, the Vendor and the Purchaser entered into a compensation agreement (the “ Compensation Agreement ”) pursuant to which it is agreed that the Vendor shall additionally deliver the rights to use one car parking space to the Purchaser as compensation for delay in processing the property ownership certificate. At as the date of this announcement, the Purchaser has paid consideration of RMB110,000,000 (the “ Paid Consideration ”) to the Vendor.

The Board announces that in view of the recent changes in the acquisition plan of the Group, on 5 August 2019, the Vendor and the Purchaser entered into a termination agreement (the “ Termination Agreement ”) pursuant to which both parties mutually agreed to terminate the Property Acquisition Agreement, the Supplemental Agreement and the Compensation Agreement with immediate effect, the Acquisition and the transactions contemplated thereunder will not proceed. The Vendor and the Purchaser may proceed another acquisition by changing of deal structure (the “ Possible Acquisition ”) at a later time as and when appropriate.

Should the Possible Acquisition materialise, it may constitute a notifiable transaction for the Company under the Listing Rules. Further announcement will be made by the Company as and when appropriate in accordance with the Listing Rules.

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In the event the Possible Acquisition is not entered and completed within 1 year after the date of the Termination Agreement, the Vendor shall immediately return the Paid Consideration to the Purchaser.

The Board is of the view that the termination of the Acquisition will not have any material adverse impact to the business, operation and the financial position of the Group.

By Order of the Board Shenyang Public Utility Holdings Company Limited Zhang Jing Ming Chairman

Shenyang, the PRC, 5 August 2019

As at the date of this announcement, the executive Directors are Mr. Zhang Jing Ming, Mr. Leng Xiao Rong and Mr. Chau Ting Yan, the non-executive Directors are Mr. Yin Zong Chen and Mr. Ye Zhi E and the independent non-executive Directors are Mr. Chan Ming Sun Jonathan, Mr. Guo Lu Jin and Ms. Gao Hong Hong.

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