FingerTango Inc. — Capital/Financing Update 2021

Jun 2, 2021

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FingerTango Inc.

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 6860)

SUPPLEMENTAL ANNOUNCEMENT ON

DISCLOSEABLE TRANSACTION IN RELATION TO ACQUISITIONS OF LISTED SECURITIES

Reference is made to the announcement of the Company in relation to acquisitions of listed securities dated 15 March 2021 (the “ Announcement ”). Unless otherwise defined herein, capitalized terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board would like to provide the Shareholders and potential investors of the Company with supplemental information relating the Acquisitions as follows:

SOURCE OF FUNDING FOR THE ACQUISITIONS

The consideration of the Acquisitions has been financed by funds generated from operation instead of the unutilized IPO proceeds.

SUPPLEMENTAL INFORMATION ON REASONS FOR AND BENEFITS

OF THE ACQUISITIONS

To better manage the amount of surplus cash reserves in the Group and with a view to diversify the Group’s other income, the Company has been exploring different investment opportunities (including different types of investment products from industries different from the one the Group

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operates in) from time to time. Having considered the following, the Company considered the Acquisitions presented a good opportunity for the Group to utilize its available funds for a return and to expand investment portfolio with quality assets:

• 1. Positive historical financial performance in CGII (the “ investee ”) for the three years ended 31 December 2019 and the six months ended 30 June 2020;
• 1. According to the dividend policy disclosed in the Prospectus of CGII, the investee currently intends to recommend dividends of no less than 40% of its net profit available for distribution to shareholders in the foreseeable future;
• 1. According to Prospectus of CGII and in terms of revenue in 2019, the investee was the second largest industrial gas supplier in the Jing-Jin-Ji Region (「京津冀區域」, comprising Beijing, Tianjin and Hebei Province, which is the largest urbanised megalopolis region in North China and the leading regional market of industrial gas in China in terms of revenue). As disclosed in the Prospectus of CGII, the investee is the exclusive pipeline industrial gas supplier for a few members of the HBIS Group, a leading iron and steel producer in the PRC with whom the investee has entered into long-term industrial gas supply contracts which provide a solid backbone for its business. Thus, it has a bright business prospects;
• 1. The large demand from the downstream sectors (i.e. the fast-growing electronics industry, one of the major downstream industries of industrial gas) and strong support from the government is likely to present opportunities for the industrial gas industry. Moreover, leading enterprises in the industrial gas market (such as the investee) may benefit from the transformation of iron and steel industry (top downstream industry of industrial gas in terms of revenue in 2019) as small and medium-sized companies may be strongly impacted due to weak adaptive capacity to the changing policies and relatively narrow customer bases; and
• 1. The prevailing trading prices have already reflected the market valuation of the investee based on its financial results and prevailing market sentiment (including the expectation of the investors).

By order of the Board FingerTango Inc. LIU Jie Chairman and Chief Executive Officer

Guangzhou, the People’s Republic of China 2 June 2021

As at the date of this announcement, the Board comprises Mr. LIU Jie and Mr. ZHU Yanbin as executive Directors and Ms. YAO Minru, Mr. GUO Jingdou and Dr. LIU Jianhua as independent non-executive Directors.

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