Cowell e Holdings Inc. — Proxy Solicitation & Information Statement 2020

Apr 20, 2020

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Cowell e Holdings Inc., you should at once hand this circular, together with the enclosed form of proxy, to the purchaser(s) or the transferee(s) or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or the transferee(s).

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, 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 circular.

Cowell e Holdings Inc. 高偉電子控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1415)

(1) PROPOSED GRANT OF GENERAL MANDATES TO ISSUE NEW SHARES AND REPURCHASE SHARES (2) PROPOSED RE-ELECTION OF DIRECTORS AND (3) NOTICE OF ANNUAL GENERAL MEETING

A notice convening the annual general meeting (the “ AGM ”) of Cowell e Holdings Inc. to be held at Strategic Public Relations Group Limited, 24/F, Admiralty Centre I, 18 Harcourt Road, Hong Kong on 21 May, 2020 at 10 a.m. is set out on pages 15 to 18 of this circular. If you are not able to attend and/or vote at the AGM, you are strongly urged to complete and return the form of proxy, a copy of which is enclosed, in accordance with the instructions printed thereon as soon as possible and in any event not later than 19 May, 2020 at 10:00 a.m. (Hong Kong Time).

Completion and return of the form of proxy will not preclude you from attending and voting in person at the meeting should you so wish.

PRECAUTIONARY MEASURES FOR ANNUAL GENERAL MEETING

To safeguard the health and safety of shareholders and to prevent and control the spread of the novel coronavirus disease (COVID-19), the following precautionary measures will be implemented at the annual general meeting:

• compulsory body temperature checks and health declarations

• wearing of surgical face mask

• no distribution of refreshment or gift

Any person who does not comply with the precautionary measures or is subject to any HKSAR Government prescribed quarantine may be denied entry into the annual general meeting venue. The Company reminds shareholders that they may consider appointing the chairman of the annual general meeting as their proxy to vote on the relevant resolution(s) at the annual general meeting as an alternative to attending the annual general meeting in person.

21 April, 2020

CONTENTS

	Page
PRECAUTIONARY MEASURES FOR ANNUAL GENERAL MEETING . . . . . . . . .	1
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
APPENDIX I — EXPLANATORY STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
APPENDIX II — DETAILS OF DIRECTORS PROPOSED FOR RE-ELECTION .	12
NOTICE OF ANNUAL GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	15

– i –

PRECAUTIONARY MEASURES FOR ANNUAL GENERAL MEETING

In light of the epidemic situation of novel coronavirus disease (COVID-19), the following precautionary measures will be implemented at the annual general meeting of the Company (“ AGM ”) to safeguard the health and safety of shareholders who might be attending the AGM in person:

1. Compulsory body temperature checks will be conducted for every attendee at the entrance of the AGM venue. Any person with a body temperature above the reference range quoted by the Department of Health of the HKSAR Government from time to time may be denied entry into the AGM venue and be required to leave the AGM venue.

2. Every attendee will be required to wear a surgical face mask throughout the AGM and inside the AGM venue, and to sit at a distance from other attendees.

3. No refreshment will be served, and there will be no gift.

4. Each attendee may be asked whether (a) he/she has travelled outside of Hong Kong within the 14-day period immediately before the AGM; (b) he/she is subject to any HKSAR Government prescribed quarantine; and (c) he/she has any flu-like symptoms or close contact with any person under quarantine or with recent travel history. Anyone who responds positively to any of these questions may be denied entry into the AGM venue and be required to leave the AGM venue.

In addition, the Company reminds all shareholders that physical attendance in person at the AGM is not necessary for the purpose of exercising voting rights. Shareholders may consider appointing the chairman of the AGM as their proxy to vote on the relevant resolution(s) at the AGM instead of attending the AGM in person, by completing and return the form of proxy enclosed with this circular.

If any shareholder has any question relating to the AGM, please contact the Company’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited as follows:

Computershare Hong Kong Investor Services Limited 17M Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong

Email: hkinfo@computershare.com.hk Tel: (852) 2862 8555 Fax: (852) 2865 0990

– 1 –

DEFINITIONS

In this circular, unless the context otherwise requires, the following expressions shall have the following meanings:

“AGM”

• the annual general meeting of the Company to be held at Strategic Public Relations Group Limited, 24/F, Admiralty Centre I, 18 Harcourt Road, Hong Kong on 21 May, 2020 at 10 a.m.

• “Articles of Association” the articles of association of the Company

• “Board” the board of Directors

• “Company”

• Cowell e Holdings Inc. (高偉電子控股有限公司), a company incorporated in the Cayman Islands with limited liability, the Shares of which are listed on the Main Board of the Stock Exchange

• “Cowell China” Dongguan Cowell Optic Electronics Co., Ltd. (東莞高偉光 學電子有限公司), a wholly foreign-owned enterprise incorporated in the PRC on February 5, 2002, which is a wholly owned subsidiary of Cowell Hong Kong

• “Cowell Hong Kong” Cowell Optic Electronics Limited (高偉光學電子有限公 司), a limited liability company incorporated in Hong Kong on March 6, 2002, which is a wholly owned subsidiary of the Company

“Cowell Korea” Cowell Electronics Co., Ltd. (formerly known as Cowell World Optic Co., Ltd. and World Optic Co., Ltd.), a stock corporation incorporated under the laws of Korea on January 29, 1997, which is a wholly owned subsidiary of the Company

• “Director(s)” director(s) of the Company

• “Group” the Company and its subsidiaries

• “HK$” Hong Kong dollars, the lawful currency of Hong Kong

• “Hong Kong” the Hong Kong Special Administrative Region of the People’s Republic of China

• “Issue Mandate” a general and unconditional mandate proposed to be granted to the Directors at the AGM to authorize them to allot, issue and otherwise deal with additional Shares up to a maximum of 20% of the issued Shares as at the date of the AGM

– 2 –

DEFINITIONS

• “Latest Practicable Date” 14 April, 2020, being the latest practicable date prior to the printing of this circular for ascertaining certain information in this circular

• “Listing Date” 31 March, 2015, being the date on which dealing in the Shares first commenced on the Main Board of the Stock Exchange

• 14 April, 2020, being the latest practicable date prior to the printing of this circular for ascertaining certain information in this circular

• “Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange

• “Mr. Kwak” Mr. Kwak Joung Hwan

• “Repurchase Mandate”

• a general and unconditional mandate proposed to be granted to the Directors at the AGM to authorize them to repurchase up to a maximum of 10% of the issued Shares as at the date of the AGM

• “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended or supplemented from time to time

• “Shares(s)” ordinary share(s) of US$0.004 each in the capital of the Company or if there has been a subsequent sub-division, consolidation, reclassification or reconstruction of the share capital of the Company, shares forming part of the ordinary equity share capital of the Company

• “Shareholder(s)” holder(s) of Share(s)

• “Stock Exchange” The Stock Exchange of Hong Kong Limited

• “subsidiary(ies)”

• subsidiary(ies) within the meaning of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as amended or supplemented from time to time

• “Takeovers Code”

• The Code on Takeovers and Mergers and Share Buy-backs published by the Securities and Futures Commission of Hong Kong, as amended or supplemented from time to time

• “US$”

• U.S. dollars, the lawful currency of the United States of America

• “%”

per cent.

– 3 –

LETTER FROM THE BOARD

Cowell e Holdings Inc. 高偉電子控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1415)

Executive Directors

Mr. Kwak Jung Young (Chairman) Mr. Cho Young Hoon

Independent non-executive Directors

Mr. Kim Chan Su Dr. Song Si Young Mr. Jung Jong Chae

Registered Office PO Box 309 Ugland House Grand Cayman KY1-1104 Cayman Islands

Headquarter and Principal Place of Business in the PRC

No. 1 Songbai Road Huanan Industrial Zone Liaobu Town Dongguan City Guangdong Province, PRC

Principal Place of Business in Hong Kong Suite 3208-9 32/F, Tower 6 The Gateway 9 Canton Road Tsimshatsui Kowloon Hong Kong

21 April, 2020

To the Shareholders

Dear Sir or Madam,

(1) PROPOSED GRANT OF GENERAL MANDATES TO ISSUE NEW SHARES AND REPURCHASE SHARES, (2) PROPOSED RE-ELECTION OF DIRECTORS AND (3) NOTICE OF ANNUAL GENERAL MEETING

1. INTRODUCTION

The purpose of this circular is to provide you with information in relation to the resolutions to be proposed at the AGM for the grant of the Issue Mandate and the Repurchase Mandate, the re-election of retiring Directors and to give you notice of the AGM.

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LETTER FROM THE BOARD

2. GENERAL MANDATES TO ISSUE AND TO REPURCHASE SHARES

Ordinary resolutions will be proposed at the AGM to grant to the Directors new general mandates:

• (a) to allot, issue and otherwise deal with new Shares not exceeding 20% of the issued Shares as at the date of passing of the proposed resolution at the AGM; and

• (b) to repurchase Shares not exceeding 10% of the issued Shares as at the date of passing the proposed resolution at the AGM,

and to authorize an extension of the limit of the Issue Mandate granted by adding to it an amount representing the Shares repurchased by the Company under the Repurchase Mandate.

The Issue Mandate and the Repurchase Mandate shall be effective until whichever is the earliest of:

• (a) the conclusion of the next annual general meeting of the Company; or

• (b) the expiration of the period within which the next annual general meeting of the Company is required by the Articles of Association or any applicable law to be held; or

• (c) the passing of an ordinary resolution by the Shareholders in general meeting revoking or varying the authority given to the Directors.

Issue Mandate

The Company had in issue 831,518,800 Shares as at the Latest Practicable Date. Subject to the passing of the proposed resolution approving the Issue Mandate and in accordance with the terms therein, on the basis of 831,518,800 existing Shares in issue and assuming that such number of issued Shares remains the same at the date of passing the proposed resolution, the Company could under the Issue Mandate allot, issue and deal with up to 166,303,760 Shares, representing 20% of the total issued Shares at the date of passing of the resolution approving the Issue Mandate.

As at the Latest Practicable Date, the Directors have no immediate plans to issue any Shares under the Issue Mandate.

Details of the Issued Mandate are set out in Resolutions No. 5 and 7 respectively in the notice of the AGM.

– 5 –

LETTER FROM THE BOARD

Repurchase Mandate

Subject to the passing of the proposed resolution approving the Repurchase Mandate and in accordance with the terms therein, on the basis of 831,518,800 existing Shares in issue and assuming that such number of issued Shares remains the same at the date of passing the proposed resolution, the Company could under the Repurchase Mandate repurchase up to 83,151,880 Shares, representing 10% of the issued Shares at the time of passing of the resolution approving the Repurchase Mandate.

An explanatory statement as required under the Listing Rules to be sent to the Shareholders with respect to the Repurchase Mandate is set out in Appendix I to this circular. The explanatory statement contains all information reasonably necessary to enable Shareholders to make an informed decision on whether to vote for or against the relevant resolution.

As at the Latest Practicable Date, the Directors have no immediate plans to repurchase any Shares under the Repurchase Mandate.

Details of the Repurchase Mandate are set out in Resolution No. 6 in the notice of AGM.

3. RE-ELECTION OF DIRECTORS

Pursuant to Article 16.18 of the Articles of Association and the Corporate Governance Code set out in Appendix 14 to the Listing Rules, Mr. Kim Chan Su and Mr. Jung Jong Chae shall retire from the office and, being eligible, offer themselves for re-election as Directors at the AGM.

Pursuant to Article 16.2 of the Articles of Association and the Corporate Governance Code set out in Appendix 14 to the Listing Rules, Mr. Kwak Jung Young and Mr. Cho Young Hoon shall retire from the office and, being eligible, offer themselves for re-election as a Director at the AGM.

When identifying suitable candidates for directorship, the nomination committee of the Company carries out the selection process by making reference to the skills, experience, background, professional knowledge, personal integrity and time commitments of the proposed candidates, and also the Company’s needs and other relevant statutory requirements and regulations required for the positions. All candidates must be able to meet the standards as set out in Rules 3.08 and 3.09 of the Listing Rules. A candidate who is to be appointed as an independent non-executive Director should also meet the independence criteria as set out in Rule 3.13 of the Listing Rules. Qualified candidates will then be recommended to the Board for approval.

In considering the re-election of Mr. Kim Chan Su and Mr. Jung Jong Chae as independent non-executive Director, the Board, with the assistance and recommendation from the nomination committee of the Company, has reviewed the structure, size, composition and diversity of the Board from a number of aspects, including but not limited to gender, age, cultural and ethnic

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LETTER FROM THE BOARD

background, professional qualification, skills, knowledge and length of service. The Board considers that Mr. Kim and Mr. Jung possess rich experience in their industries and are able to provide valuable advices in areas of accounting, consulting, legal, tax and/or business to the Company, thus contributing to better corporate governance of the Company. The Board is also of the view that during the tenure of Mr. Kim and Mr. Jung as independent non-executive Director, they have made positive contributions to the Company’s strategy, policies and performance with their independent advice, comments, judgment from the perspective of their background coupled with their general understanding of business of the Group. They contribute to the diversity of the Board in professional qualification, skills and knowledge.

The Board considered that Mr. Kim and Mr. Jung have been independent according to the requirements as set out in Rule 3.13 of the Listing Rules since their appointment as independent non-executive Director. In particular, Mr. Kim and Mr. Jung do not have any past or present financial or other interest in the business of the Company, or any of its subsidiaries or holding company. Save as serving as independent non-executive Director, neither of them has taken up any other positions in the Company, or any of its subsidiaries or holding company. Therefore, the Board considered that Mr. Kim and Mr. Jung are still independent and recommended the Shareholders to re-elect them as independent non-executive Director.

The biographical details, interests in the Shares and other information required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules of the Directors proposed for re-election at the AGM are set out in Appendix II to this circular.

4. ANNUAL GENERAL MEETING

A notice convening the AGM for the purpose of considering, inter alia, (i) the Issue Mandate; (ii) the Repurchase Mandate; and (iii) the re-election of the retiring Directors is set out in on pages 15 to 18 of this circular.

If you are not able to attend and/or vote at the AGM, you are strongly urged to complete and return the form of proxy, a copy of which is enclosed, in accordance with the instructions printed thereon and return it to the Company’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, as soon as possible and in any event not later than 19 May, 2020 at 10:00 a.m. (Hong Kong Time).

Completion and return of the form of proxy will not preclude you from attending and voting in person at the meeting should you so wish.

All the resolutions proposed to be approved at the AGM will be taken by poll and an announcement will be made by the Company on the poll results of the AGM as soon as possible after the conclusion of the AGM.

– 7 –

LETTER FROM THE BOARD

5. RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the 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 circular 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 circular misleading.

6. RECOMMENDATION

The Board is of the opinion that the proposed grant of the Issue Mandate and the Repurchase Mandate and the proposed re-election of Directors are in the best interests of the Company and the Shareholders as a whole. Accordingly, the Board recommends the Shareholders to vote in favour of all the resolutions to be proposed at the AGM.

7. GENERAL

To the best of the Directors’ knowledge, information and belief, having made all reasonable enquiries, no Shareholder is required to abstain from voting on the resolutions to be proposed at the AGM.

Yours faithfully, By order of the Board Cowell e Holdings Inc. Kwak Jung Young Chairman

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EXPLANATORY STATEMENT

APPENDIX I

This Appendix serves as an explanatory statement, as required by the Listing Rules, to provide requisite information to the Shareholders for their consideration of the proposed resolutions in relation to the Repurchase Mandate.

1. SHARE CAPITAL

As at the Latest Practicable Date, the issued share capital of the Company comprised 831,518,800 Shares. Subject to the passing of Resolution No. 6 approving the Repurchase Mandate as set out in the notice of the AGM and on the basis that no further Shares are issued or repurchased after the Latest Practicable Date and up to the AGM, the Company would be allowed under the Repurchase Mandate to repurchase a maximum of 83,151,880 Shares, representing 10% of the total issued Shares.

The Shares repurchased by the Company under the Repurchase Mandate shall be cancelled automatically.

2. REASONS FOR REPURCHASE

The Directors believe that it is in the best interests of the Company and the Shareholders as a whole to have a general authority from the Shareholders to enable the Company to purchase Shares in the market. Such repurchases may, depending on market conditions and funding arrangements at the time, lead to an increase of the net asset value of the Company and its assets and/or its earnings per Share and will only be made as and when the Directors believe such repurchases will benefit the Company and the Shareholders as a whole.

3. FUNDING OF REPURCHASES

In repurchasing the Shares, the Company may only apply funds legally available for such purpose in accordance with the Articles of Association, the Listing Rules and the applicable laws of the Cayman Islands.

There might be a material adverse impact on the working capital or gearing position of the Company (as compared with the position disclosed in the audited accounts contained in the annual report of the Company for the year ended 31 December, 2019) in the event that the Repurchase Mandate is exercised in full at any time during the proposed repurchase period. The Directors, however, do not propose to exercise the Repurchase Mandate to such an extent as would, in the circumstances, have a material adverse effect on the working capital requirements of the Company or the gearing levels which, in the opinion of the Directors, are from time to time appropriate for the Company.

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EXPLANATORY STATEMENT

APPENDIX I

4. SHARE PRICE

The highest and lowest prices per Share at which the Shares were traded on the Stock Exchange during each of the previous 12 months up to the Latest Practicable Date were as follows:

	Highest	Lowest
	(HK$)	(HK$)
2019
April	1.97	1.42
May	1.91	1.33
June	1.52	1.31
July	1.55	1.31
August	1.40	1.11
September	1.40	1.11
October	1.33	1.17
November	1.32	1.15
December	1.94	1.09
2020
January	2.50	1.79
February	2.16	1.69
March	2.15	1.16
April (up to the Latest Practicable Date)	2.00	1.86

5. DISCLOSURE OF INTERESTS AND MINIMUM PUBLIC HOLDING

None of the Directors or, to the best of their knowledge having made all reasonable enquiries, any of their respective close associates (as defined in the Listing Rules), has any present intention to sell Shares to the Company or its subsidiaries any of the Shares if the Repurchase Mandate is approved at the AGM and exercised. No core connected person of the Company has notified the Company that he/she/it has any present intention to sell any of the Shares to the Company.

The Directors have undertaken to the Stock Exchange that, so far as the same may be applicable, they will exercise the powers of the Company to make purchases pursuant to the Repurchase Mandate in accordance with the Listing Rules and the applicable laws of Cayman Islands.

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EXPLANATORY STATEMENT

APPENDIX I

As at the Latest Practicable Date, to the best knowledge and belief of the Directors, the substantial Shareholders having interests in 10% or more of the Shares then in issue were:

		**Approximate **	% shareholding
		as at the	if Repurchase
		Latest	Mandate is
	Number of	Practicable	exercised in
Name of Shareholder	Shares held	Date	full
Mr. Kwak	374,159,400	45.00%	50.00%

In the opinion of the Directors, such increase may give rise to an obligation for Mr. Kwak to make a mandatory offer under Rule 26 of the Takeover Code. However, the Company has no present intention to repurchase Shares to such extent as to result in any mandatory offer to be made by Mr. Kwak under Rule 26 of the Takeovers Code.

The Directors have no intention to exercise the Repurchase Mandate to such an extent that may result in the public shareholding of less than 25% of the issued share capital of the Company.

6. SHARE REPURCHASE MADE BY THE COMPANY

The Company did not purchase any Share (whether on the Stock Exchange or otherwise) during the six months prior to the Latest Practicable Date.

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DETAILS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX II

The details of the Directors who will retire from office at the AGM and, being eligible, would offer themselves for re-election at the AGM, are set out below:

THE INFORMATION OF THE RETIRING DIRECTORS

Mr. Kwak Jung Young (“Mr. JY Kwak”) , aged 26, is an executive Director and chairman of the Board. Mr. JY Kwak joined Cowell Hong Kong, in May 2017 as a manager overseeing new business development. He was appointed as a director of Cowell Hong Kong on May 2019. Prior to joining the Group, Mr. JY Kwak had worked at JP Morgan Chase & Co. Mr. JY Kwak holds a Bachelor of Applied Mathematics and Economics from Brown University. Mr. JY Kwak is the son of Mr. Kwak, a controlling shareholder (as defined in the Listing Rules) of the Company.

Mr. JY Kwak has entered into a service contract with the Company regarding his appointment as executive Director for a term of three years commencing on 26 March, 2020. Mr. JY Kwak is entitled to an annual director’s fee of USD100,000. His emolument will be reviewed and determined by the Board with reference to his duties and responsibilities with the Company, the Company’s performance and prevailing market situation.

Mr. JY Kwak did not hold any directorship in any listed companies during the past three years. Save for the information disclosed above, there is no information of Mr. JY Kwak which is required to be disclosed pursuant to any of the requirements under Rules 13.51(2)(a) to (v) of the Listing Rules and there are no other matters concerning Mr. JY Kwak that need to be brought to the attention of the Shareholders.

Mr. Cho Young Hoon (“Mr. Cho”) , aged 43, is an executive Director and the chief financial officer of the Company. Mr. Cho joined Cowell China in July 2013 as a manager of strategic planning division and was responsible for supervising daily financial and sales operations of Cowell China. Mr. Cho was promoted to a director of Cowell China in September 2016 and was appointed as a chief financial officer of the Group in April 2018. Prior to joining Cowell China in July 2013, Mr. Cho had worked at LG Electronics, Inc. as an assistant manager from July 2002 to July 2013. He was based in Korea and was engaged in the manufacture and sale of consumer electronics such as mobile phones, televisions and air conditioners. Mr. Cho received a bachelor’s degree in economics from Yonsei University in Korea in February 2002.

As at the Latest Practicable Date, Mr. Cho is interested in 500,000 underlying shares of the Company under share options granted to him on 30 October 2015 under the share option scheme adopted by the Company pursuant to a resolution passed by the shareholders of the Company on 4 February 2015. Save for the information disclosed above, Mr. Cho does not have any other interests in the shares of the Company pursuant to Part XV of the SFO.

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DETAILS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX II

Mr. Cho has entered into a service contract with the Company regarding his appointment as executive Director for a term of three years commencing on 26 March, 2020. Mr. Cho is entitled to an annual director’s fee of KRW200,000,000. His emolument will be reviewed and determined by the Board with reference to his duties and responsibilities with the Company, the Company’s performance and prevailing market situation.

Mr. Cho did not hold any directorship in any listed companies during the past three years. Save for the information disclosed above, there is no information of Mr. Cho which is required to be disclosed pursuant to any of the requirements under Rules 13.51(2)(a) to (v) of the Listing Rules and there are no other matters concerning Mr. Cho that need to be brought to the attention of the Shareholders.

Mr. Kim Chan Su (“Mr. Kim”) , aged 52, was appointed as an independent non-executive Director on 10 March, 2015. Mr. Kim is responsible for supervising and providing independent judgment to the Board. Mr. Kim has over 20 years’ experience in professional accounting and consulting services. Since November 2004, Mr. Kim has been the chief executive officer and representative partner of IL SHIN Corporate Consulting Limited and IL Shin CPA Limited, private companies based in Hong Kong which provide professional tax and accounting advisory services to clients in Hong Kong, China and overseas. From August 2002 to October 2004, Mr. Kim worked at PricewaterhouseCoopers Hong Kong as a representative of the Korean desk in charge of Korean companies’ investment in Hong Kong and China. From October 1993 to July 2002, Mr. Kim served as a senior manager at Samil Accounting Corporation in Seoul. From September 2004 to January 2013, Mr. Kim also acted as an independent non-executive director of Forebase International Holdings Limited (formerly known as Kwang Sung Electronics H.K. Co. Limited), which is listed on the Hong Kong Stock Exchange (stock code: 2310). Mr. Kim obtained a bachelor’s degree in economics from Yonsei University in Korea in February 1992. Mr. Kim is a certified public accountant in Korea, Hong Kong and the States of Washington of the United States. He is also a member of AICPA and the HKICPA respectively.

Mr. Kim has entered into a letter of appointment with the Company regarding his appointment as an independent non-executive Director for a term of three years commencing on 10 March, 2015, which was renewed for a further term of three years from 10 March, 2018. According to the appointment letter of Mr. Kim, he is entitled to an annual director’s fee of US$30,000. His emolument will be reviewed and determined by the Board with reference to his duties and responsibilities with the Company, the Company’s performance and prevailing market situation. For the year ended 31 December, 2019, remuneration paid to Mr. Kim was US$30,000.

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DETAILS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX II

Save for the information disclosed above, Mr. Kim did not hold any directorship in any listed companies during the past three years and there is no information of Mr. Kim which is required to be disclosed pursuant to any of the requirements under Rules 13.51(2)(a) to (v) of the Listing Rules. There are no other matters concerning Mr. Kim that need to be brought to the attention of the Shareholders.

Mr. Jung Jong Chae (“Mr. Jung”) , aged 46, was appointed as an independent non-executive Director on 13 December, 2018. Mr. Jung is a partner at Law Firm SN, one of South Korea’s leading law firms providing comprehensive legal, accounting, tax, compliance and regulatory services. Mr. Jung’s main areas of practice include tax, anti-trust and subcontract law. Mr. Jung has also handled successfully large transactions and corporate disputes. After passing the Higher Civil Service Examination, Mr. Jung, as a deputy director, served for the Investigation Bureau of the Seoul Regional Tax Office, the Tax Collection Division of the National Tax Service, and the Tax Service Division of the Jeju Tax Office. Mr. Jung has published many articles on tax and fair trade issues and wrote textbooks on subcontract law, and is active in various forums and studies as both presenter and debater. Mr. Jung holds a Bachelor of Art in Economics from Seoul National University in Korea and a Master of Business Administration from Sejong-Syracuse University. Mr. Jung also holds a Master of Laws from New York University.

Mr. Jung has entered into a letter of appointment with the Company regarding his appointment as an independent non-executive Director for a term of three years commencing on 13 December, 2018. According to the appointment letter of Mr. Jung, he is entitled to an annual director’s fee of US$25,000. His emolument will be reviewed and determined by the Board with reference to his duties and responsibilities with the Company, the Company’s performance and prevailing market situation. For the year ended 31 December, 2019, remuneration paid to Mr. Jung was US$25,000.

Save for the information disclosed above, Mr. Jung did not hold any directorship in any listed companies during the past three years and there is no information of Mr. Jung which is required to be disclosed pursuant to any of the requirements under Rules 13.51(2)(a) to (v) of the Listing Rules. There are no other matters concerning Mr. Jung that need to be brought to the attention of the Shareholders.

– 14 –

NOTICE OF ANNUAL GENERAL MEETING

Cowell e Holdings Inc.

高偉電子控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1415)

NOTICE IS HEREBY GIVEN that the annual general meeting (the “ AGM ”) of Cowell e Holdings Inc. (the “ Company ”) will be held at Strategic Public Relations Group Limited, 24/F, Admiralty Centre I, 18 Harcourt Road, Hong Kong on 21 May, 2020 at 10 a.m. for considering and, if thought fit, passing, with or without modifications, the following resolutions as ordinary resolutions of the Company:

1. To receive and approve the audited consolidated financial statements of the Company and its subsidiaries and the reports of the directors (the “ Directors ”) and the auditor of the Company for the year ended 31 December, 2019;

2. (a) To declare a final dividend of HK24.2640 cents per ordinary share in respect of the year ended 31 December, 2019.

3. (b) To declare a special dividend of HK22.3976 cents per ordinary share in respect of the year ended 31 December, 2019.

4. (a) To re-elect the following retiring Directors:

   • (i) Mr. Kwak Jung Young as an executive Director.

   • (ii) Mr. Cho Young Hoon as an executive Director.

   • (iii) Mr. Kim Chan Su as an independent non-executive Director.

   • (iv) Mr. Jung Jong Chae as an independent non-executive Director.

5. (b) To authorize the board of Directors (the “ Board ”) to fix the Directors’ remuneration.

6. To re-appoint Messrs. KPMG, Certified Public Accountants, as the auditor of the Company and to authorize the Board to fix their remuneration.

7. “ THAT :

8. (a) subject to paragraph (c) below, a general mandate be and is hereby unconditionally granted to Directors to exercise during the Relevant Period (as defined in paragraph (d) below) all the powers of the Company to allot, issue and deal with additional shares in the Company and to make or grant offers, agreements, options or warrants which would or might require the exercise of such powers;

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NOTICE OF ANNUAL GENERAL MEETING

• (b) the mandate in paragraph (a) shall authorize the Directors during the Relevant Period (as defined in paragraph (d) below) to make or grant offers, agreements, options and warrants which would or might require the exercise of such powers after the end of the Relevant Period (as defined in paragraph (d) below);

• (c) the shares of the Company allotted or agreed conditionally or unconditionally to be allotted (whether pursuant to an option or otherwise) by the Directors pursuant to the mandate in paragraph (a), otherwise than pursuant to (i) a Rights Issue (as defined in paragraph (d) below); or (ii) any option scheme or similar arrangement for the time being adopted by the Company for the purpose of granting or issuing shares or rights to acquire shares of the Company to the directors, employees, officers, agents, consultants or representatives of the Company and/or any of its subsidiaries; or (iii) any scrip dividend or similar arrangement pursuant to the Articles of Association of the Company from time to time, shall not exceed 20% of the shares of the Company in issue as at the date of the passing of this Resolution and the said mandate shall be limited accordingly; and

• (d) for the purpose of this Resolution:

“ Relevant Period ” means the period from the passing of this Resolution until whichever is the earliest of:

• (i) the conclusion of the next annual general meeting of the Company;

• (ii) the expiration of the period within which the next annual general meeting of the Company is required by the Company’s Articles of Association or any applicable law to be held; and

• (iii) the date on which authority set out in this Resolution is revoked or varied by an ordinary resolution of the shareholders of the Company in general meeting.

“ Rights Issue ” means an offer of Shares or issue of options, warrants, or other securities giving the right to subscribe for shares of the Company, open for a period fixed by the Directors to holders of Shares whose names appear on the register of members of the Company (and, where appropriate, to holders of other securities entitled to the offer) on a fixed record date in proportion to their then holdings of such shares of the Company (or, where appropriate, such other securities), subject to such exclusions or other arrangements as the Directors may deem necessary or expedient in relation to fractional entitlements or having regard to any restrictions or having regard to any restrictions or obligations under the laws of, or the requirements of or any recognized regulatory body or any stock exchange in, any territory outside Hong Kong.”

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NOTICE OF ANNUAL GENERAL MEETING

1. “ THAT :

2. (a) a general mandate be and is hereby unconditionally given to the directors of the Company to exercise during the Relevant Period (as defined in paragraph (b) below) all the powers of the Company to repurchase or otherwise acquire shares of US$0.004 each in the capital of the Company in accordance with all applicable laws and the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, provided that the shares so repurchased or otherwise acquired shall not exceed 10% of the shares of the Company in issue as at the date of the passing of this Resolution;

3. (b) for the purpose of this Resolution:

“ Relevant Period ” means the period from the passing of this Resolution until whichever is the earliest of:

• (i) the conclusion of the next annual general meeting of the Company;

• (ii) the expiration of the period within which the next annual general meeting of the Company is required by the Company’s Articles of Association or any applicable law to be held; and

• (iii) the date on which the authority set out in this Resolution is revoked or varied by an ordinary resolution of the shareholders of the Company in general meeting.”

• “ THAT , conditional upon the passing of the Resolutions No. 5 and No. 6 of the notice of the AGM, the general mandate granted to the Directors of the Company to exercise the powers of the Company to allot, issue and otherwise deal with shares of the Company pursuant to the Resolution No. 5 of the notice of the AGM be and is hereby extended by the addition thereto of an amount representing the shares of the Company purchased or otherwise acquired by the Company pursuant to the authority granted to the Directors of the Company under the Resolution No. 5 above of the notice of the AGM, provided that such amount shall not exceed 10% of the issued shares of the Company as at the date of passing this Resolution.”

By order of the Board Kwak Jung Young Chairman

Hong Kong, 21 April, 2020

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NOTICE OF ANNUAL GENERAL MEETING

Notes:

1. A member entitled to attend and vote at the AGM is entitled to appoint one or more proxy to attend and, subject to the provisions of the Articles of Association of the Company, vote in his stead. A proxy need to be a member of the Company.

2. A form of proxy for use at the AGM (or at any adjournment thereof) is dispatched together with this notice of meeting. In order to be valid, the form of proxy, together with a power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power or authority, must be completed and lodged with the offices of the Company’s branch share registrar and transfer office in Hong Kong, Computershare Hong Kong Investor Services Limited at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 19 May, 2020 at 10:00 a.m. (Hong Kong Time).

3. Completion and return of the form of proxy will not preclude members from attending and voting at the AGM or any adjournment thereof, and in such event, the relevant form of proxy shall be deemed revoked.

4. Where there are joint registered holders of any Share, any one of such joint holders may attend and vote at the AGM, either in personal or by proxy, in respect of such Share(s) as if he/she were solely entitled thereto, but if more than one of such joint registered holders are present at the AGM or any adjournment thereof (as the case may be), the most senior shall alone be entitled to vote, whether in person or by proxy. For this purpose, seniority shall be determined by the order in which the names stand in the register of members of the Company in respect of the joint holding.

5. The record date for the proposed final dividend will be on 1 June, 2020. The Company’s register of members will be closed from 28 May, 2020 to 1 June, 2020 (both days inclusive) in order to determine entitlements to the proposed final dividend. During such period, no transfer of shares will be effected. In order to qualify for the proposed final dividend, all transfers of shares of the Company accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited (the “ Share Registrar ”), at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong, for registration no later than 4:30 p.m. on 27 May, 2020. Subject to the approval of the Shareholders at the AGM, dividend will be paid to the Shareholders on or around 11 June, 2020.

6. For determining the entitlement to attend and vote at the AGM, the register of members of the Company will be closed from 18 May, 2020 to 21 May, 2020, both dates inclusive, during which period no transfers of shares of the Company will be registered. In order to qualify for attending and voting at the AGM, shareholders must complete and lodge all transfer documents accompanied by the relevant share certificates with the Share Registrar at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong for registration not later than 4:30 p.m. on 15 May, 2020.

7. If typhoon signal no. 8 or above remains hoisted or a black rainstorm warning signal is in force at 8:00 a.m. at the date of the AGM, the AGM will be postponed. Members are requested to visit the website of the Company at www.cowelleholdings.com for details of alternative meeting arrangements. The AGM will be held as scheduled when an amber or red rainstorm warning signal is in force. Shareholders should make their own decision as to whether they would attend the AGM under the bad weather conditions bearing in mind their own situation and if they should choose to do so, they are advised to exercise care and caution.

8. As at the date hereof, the Board comprises Mr. Kwak Jung Young and Mr. Cho Young Hoon as executive Directors; and Mr. Kim Chan Su, Dr. Song Si Young and Mr. Jung Jong Chae as independent non-executive Directors.

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