Hengxin Technology Ltd. — Interim / Quarterly Report 2014

May 14, 2014

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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HENGXIN TECHNOLOGY LTD. 亨鑫科技有限公司[*]

(carrying on business in Hong Kong as HX Singapore Ltd.)

(Incorporated in Singapore with limited liability)

(Singapore Registration No.: 200414927H)

(Hong Kong Stock Code: 1085) (Singapore Stock Code: I85)

OVERSEAS REGULATORY ANNOUNCEMENT FIRST QUARTER FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2014

This overseas regulatory announcement is a reproduction of the announcement made by Hengxin Technology Ltd. (the “ Company ”) regarding the first quarter results of the Company and its subsidiaries (collectively the “ Group ”) for the period ended 31 March 2014 pursuant to the Listing Manual of the Singapore Exchange Securities Trading Limited (the “ SGX-ST ”). In compliance with Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, please refer to the attached announcement on the next page issued on the SGX-ST on 14 May 2014.

This quarterly report is prepared in accordance with relevant regulations of the SGX-ST. The financial information set out in this quarterly report has been prepared in accordance with Singapore Financial Reporting Standard and has not been audited nor reviewed by auditors. Shareholders of the Company and public investors should exercise caution when trading in the shares of the Company.

By order of the Board of Hengxin Technology Ltd. Cui Genxiang Executive Chairman

Hong Kong, 14 May 2014

As at the date of this announcement, the executive Directors of the Company are Mr. Cui Genxiang and Mr. Xu Guoqiang; the non-executive Director of the Company is Ms. Zhang Zhong; and the independent non-executive Directors of the Company are Mr. Tay Ah Kong Bernard, Mr. Chee Teck Kwong Patrick and Mr. Tam Chi Kwan Michael.

• For identification purpose only

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The board of directors (the “ Board ”) of the Company is pleased to announce the unaudited consolidated results of the Group for the first quarter ended 31 March 2014 together with the comparative figures of the corresponding periods in 2013 as follow:

• 1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Revenue Cost of Sales Gross profit Other income Selling and distribution expenses Administrative expenses Other operating expenses Finance costs Profit before income tax Income tax expense Net profit attributable to equity holders of the parent Other comprehensive income Items that may be classified subsequently to profit or loss: Exchange differences arising from consolidation of foreign differences Total comprehensive income attributable to equity holders of the parent

Group 3 months ended 31 March 2014 2013 Change RMB’000 RMB’000 % (unaudited) (unaudited) 308,771 201,944 52.9 (256,994) (163,082) 57.6 51,777 38,862 33.2 2,807 2,897 (3.1) (15,202) (11,359) 33.8 (7,125) (8,822) (19.2) (7,983) (5,079) 57.2 (1,107) (1,545) (28.3) 23,167 14,954 54.9 (3,387) (3,185) 6.3 19,780 11,769 68.1 706 301 134.6 20,486 12,070 69.7

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1(a)(ii) The following items (with appropriate breakdowns and explanations), if significant, must either be included in the income statement or in the notes to the income statement for the current financial period reported on and the corresponding period of the immediately preceding financial year:

Profit before income tax is determined after charging (crediting) the following:

	Group	Group
	3 months ended	31 March
	2014	2013	Change
	RMB’000	RMB’000	%
	(unaudited)	(unaudited)
Depreciation of property, plant and equipment	4,468	5,057	–11.6%
(Gain) Loss on disposal of property, plant and
equipment	(19)	20	N.M.
Amortisation of leasehold land	139	140	–0.7%
Foreign exchange (gains) losses	(425)	848	N.M.
Interest expense	1,107	1,545	–28.3%
Interest income	(761)	(1,022)	–25.5%
Research and development expenses	7,480	3,711	101.6%

N.M.: Not meaningful

1(a)(iii) Statement of Comprehensive Income

RMB’000 Net profit Other comprehensive income Items that may be classified subsequently to profit or loss: Exchange differences arising from consolidation of foreign operations Total comprehensive income for the period N.M. — Not meaningful	Group 3 months ended 31 March 2014 2013 Change (unaudited) (unaudited) % 19,780 11,769 68.1% 706 301 N.M. 20,486 12,070 69.7%

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(1)(b)(i) A consolidated statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

Current assets Cash and bank equivalents Pledged cash deposits Available-for-sale investment Trade receivables Other receivables and prepayments Inventories Leasehold land Total current assets Non-current assets Subsidiaries Available-for-sale investment Other receivables and prepayment Leasehold land Property, plant and equipment Deferred tax assets Total non-current assets TOTAL ASSETS Current liabilities Short-term loans Trade payables Other payables Income tax payable Total current liabilities Non-current liabilities Deferred income Deferred tax liabilities Total non-current liabilities Capital and reserves Share capital General reserves Special reserve Translation reserves Accumulated profits Total equity TOTAL LIABILITIES AND EQUITY	Group 31-Mar-14 31-Dec-13 RMB’000 RMB’000 (unaudited) (audited) 203,218 372,177 1,484 1,960 10,000 — 774,284 656,795 87,055 39,113 171,213 182,549 560 560 1,247,814 1,253,154 — — 10,000 10,000 5,760 5,760 18,202 18,341 141,033 143,615 2,757 2,737 177,752 180,453 1,425,566 1,433,607 177,750 176,810 109,576 126,254 19,367 34,822 3,295 721 309,988 338,607 7,500 7,500 3,559 3,467 11,059 10,967 295,000 295,000 152,182 149,215 (6,017) (6,017) (614) (1,320) 663,968 647,155 1,104,519 1,084,033 1,425,566 1,433,607	Group 31-Mar-14 31-Dec-13 RMB’000 RMB’000 (unaudited) (audited) 203,218 372,177 1,484 1,960 10,000 — 774,284 656,795 87,055 39,113 171,213 182,549 560 560 1,247,814 1,253,154 — — 10,000 10,000 5,760 5,760 18,202 18,341 141,033 143,615 2,757 2,737 177,752 180,453 1,425,566 1,433,607 177,750 176,810 109,576 126,254 19,367 34,822 3,295 721 309,988 338,607 7,500 7,500 3,559 3,467 11,059 10,967 295,000 295,000 152,182 149,215 (6,017) (6,017) (614) (1,320) 663,968 647,155 1,104,519 1,084,033 1,425,566 1,433,607	Company 31-Mar-14 31-Dec-13 RMB’000 RMB’000 (unaudited) (audited) 15,796 17,215 — — — — — — 95,238 96,086 — — — — 111,034 113,301 392,544 392,544 — — — — — — — — — — 392,544 392,544 503,578 505,845 — — — — 5,759 7,853 — — 5,759 7,853 — — — — — — 295,000 295,000 — — — — — — 202,819 202,992 497,819 497,992 503,578 505,845	Company 31-Mar-14 31-Dec-13 RMB’000 RMB’000 (unaudited) (audited) 15,796 17,215 — — — — — — 95,238 96,086 — — — — 111,034 113,301 392,544 392,544 — — — — — — — — — — 392,544 392,544 503,578 505,845 — — — — 5,759 7,853 — — 5,759 7,853 — — — — — — 295,000 295,000 — — — — — — 202,819 202,992 497,819 497,992 503,578 505,845
	203,218 1,484 10,000 774,284 87,055 171,213 560	372,177 1,960 — 656,795 39,113 182,549 560	15,796 — — — 95,238 — —	17,215 — — — 96,086 — —
	1,247,814	1,253,154	111,034	113,301
	— 10,000 5,760 18,202 141,033 2,757	— 10,000 5,760 18,341 143,615 2,737	392,544 — — — — —	392,544 — — — — —
	177,752 1,425,566	180,453 1,433,607	392,544 503,578	392,544 505,845
	177,750 109,576 19,367 3,295	176,810 126,254 34,822 721	— — 5,759 —	— — 7,853 —
	309,988	338,607	5,759	7,853
	7,500 3,559	7,500 3,467	— —	— —
	11,059	10,967	—	—
	295,000 152,182 (6,017) (614) 663,968	295,000 149,215 (6,017) (1,320) 647,155	295,000 — — — 202,819	295,000 — — — 202,992
	1,104,519 1,425,566	1,084,033 1,433,607	497,819 503,578	497,992 505,845

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(1)(b)(ii) In relation to the aggregate amount of the group’s borrowings and debt securities, specify the following as at the end of the current financial period reported on with comparative figures as at the end of the immediately preceding financial year:

(A) the amount repayable in one year or less, or on demand;

(B) the amount repayable after one year;

(C) whether the amounts are secured or unsecured; and

(D) details of any collaterals.

Amount repayable in one year or less, or on demand:

As at 31 March 2014		As at 31 December 2013
Secured	Unsecured	Secured	Unsecured
RMB’000	RMB’000	RMB’000	RMB’000
—	177,750	—	176,810

As at 31 March 2014, all bank borrowings are unsecured.

There is no amount repayable after one year.

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(1)(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

Group RMB’000 Cash flows from operating activities Profit before income tax Adjustments for: Depreciation of property, plant and equipment Amortisation of leasehold land (Gain) Loss on disposal of property, plant and equipment Interest expense Interest income Exchange differences arising on foreign currency translation Operating profit before working capital changes Trade receivables Other receivables and prepayments Inventories Trade payables Other payables Cash used in operations Interest paid Interest received Income tax paid Net cash used in operating activities Cash flows from investing activity Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of available-for-sale investment Net cash used in investing activities Cash flows from financing activities Decrease in pledged bank deposits Proceeds from bank loans Repayment of bank loans Net cash generated from financing activities Net decrease in cash and cash equivalents Effects of foreign exchange translation Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period

1-Jan-2014 to 31-Mar-2014 1-Jan-2013 to 31-Mar-2013 23,167 14,954 4,468 5,057 139 140 (19) 20 1,107 1,545 (761) (1,022) 1,099 691 29,200 21,385 (117,489) (26,945) (47,942) (9,771) 11,336 5,707 (16,678) (72,294) (15,455) (7,430) (157,028) (89,348) (1,107) (1,545) 761 1,022 (741) (2,434) (158,115) (92,305) (1,930) (1,142) 63 — (10,000) — (11,867) (1,142) 476 19,390 — 60,000 — (71,999) 476 7,391 (169,506) (86,056) 547 (391) 372,177 265,853 203,218 179,406

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(1)(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

(i) Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2014

GROUP — RMB’000 Balance at 01.01.2014 Profit for the period Other comprehensive income for the period Transfer to general reserves Balance at 31.03.2014 (ii)Consolidated Statement of GROUP — RMB’000 Balance at 01.01.2013 Profit for the period Other comprehensive income for the period Transfer to general reserves Balance at 31.03.2013	Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 149,215 (6,017) (1,320) 647,155 1,084,033 — — — — 19,780 19,780 — — — 706 — 706 — 2,967 — — (2,967) — 295,000 152,182 (6,017) (614) 663,968 1,104,519 Changes in Equity for the 3 months ended 31 March 2013 Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 134,381 (6,017) (1,098) 583,182 1,005,448 — — — — 11,769 11,769 — — — 301 — 301 — 1,424 — — (1,424) — 295,000 135,805 (6,017) (797) 593,527 1,017,518	Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 149,215 (6,017) (1,320) 647,155 1,084,033 — — — — 19,780 19,780 — — — 706 — 706 — 2,967 — — (2,967) — 295,000 152,182 (6,017) (614) 663,968 1,104,519 Changes in Equity for the 3 months ended 31 March 2013 Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 134,381 (6,017) (1,098) 583,182 1,005,448 — — — — 11,769 11,769 — — — 301 — 301 — 1,424 — — (1,424) — 295,000 135,805 (6,017) (797) 593,527 1,017,518	Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 149,215 (6,017) (1,320) 647,155 1,084,033 — — — — 19,780 19,780 — — — 706 — 706 — 2,967 — — (2,967) — 295,000 152,182 (6,017) (614) 663,968 1,104,519 Changes in Equity for the 3 months ended 31 March 2013 Share capital General reserves Special reserves Translation reserves Accumulated profits Total 295,000 134,381 (6,017) (1,098) 583,182 1,005,448 — — — — 11,769 11,769 — — — 301 — 301 — 1,424 — — (1,424) — 295,000 135,805 (6,017) (797) 593,527 1,017,518
	Share capital 295,000 — — — 295,000	General reserves 134,381 — — 1,424 135,805
			1,017,518

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(1)(d)(i) (continued)

(iii) Statement of Changes in Equity of the Company for the 3 months ended 31 March 2014

COMPANY Share capital RMB’000 Balance at 01.01.2014 295,000 Loss for the period representing total comprehensive income — Balance at 31.03.2014 295,000 (iv)Statement of Changes in Equity of the Company for the 3 months COMPANY Share capital RMB’000 Balance at 01.01.2013 295,000 Loss for the period representing total comprehensive income — Balance at 31.03.2013 295,000	COMPANY Share capital RMB’000 Balance at 01.01.2014 295,000 Loss for the period representing total comprehensive income — Balance at 31.03.2014 295,000 (iv)Statement of Changes in Equity of the Company for the 3 months COMPANY Share capital RMB’000 Balance at 01.01.2013 295,000 Loss for the period representing total comprehensive income — Balance at 31.03.2013 295,000	Accumulated profits Total RMB’000 RMB’000 202,992 497,992 (173) (173) 202,819 497,819 ended 31 March 2013 Accumulated profits Total RMB’000 RMB’000 122,082 417,082 (2,582) (2,582) 119,500 414,500
	Share capital RMB’000 295,000 — 295,000

(1)(d)(ii) Details of any changes in the company’s share capital arising from rights issue, bonus issue,
share buy-backs, exercise of share options or warrants, conversion of other issues of equity
securities, issue of shares for cash or as consideration for acquisition or for any other purpose
since the end of the previous period reported on. State also the number of shares that may
be issued on conversion of all the outstanding convertibles, as well as the number of shares
held as treasury shares, if any, against the total number of issued shares excluding treasury
shares of the issuer, as at the end of the current financial period reported on and as at the
end of the corresponding period of the immediately preceding financial year.
No. of shares
Share capital — Ordinary Shares ’000 RMB’000
Balance as at 31 March 2014 and 31 December 2013 388,000 295,000

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• 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

As above. As at 31 March 2014 and 31 December 2013, there were no treasury shares.

• 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

Not applicable.

2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard).

The figures have not been audited or reviewed by the Company’s auditors.

3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period reported on, as in the recently audited consolidated financial statements for the financial year ended 31 December 2013.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

Not applicable.

6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends:

period of the immediately preceding financial year, after deducting dividends:	any provision for preference	any provision for preference
Earnings per share (RMB cents) — Basic — Diluted Weighted average no. of shares applicable to basic EPS Weighted average no. shares based on fully diluted basis	Group 3 months ended 31-Mar-14 31-Mar-13 0.05 0.03 0.05 0.03 388,000,000 388,000,000 388,000,000 388,000,000
		0.03
		388,000,000 388,000,000

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7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the (a) current financial period reported on; and (b) immediately preceding financial year.

Net Assets (RMB’000) Number of ordinary shares (’000) Net Asset Value per share (RMB)	Group 31-Mar-14 31-Dec-13 1,104,519 1,084,033 388,000 388,000 2.85 2.79	Company 31-Mar-14 31-Dec-13 497,819 497,992 388,000 388,000 1.28 1.28	Company 31-Mar-14 31-Dec-13 497,819 497,992 388,000 388,000 1.28 1.28
			1.28

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

First Quarter of FY2014 (“1Q2014”) vs First Quarter of FY2013 (“1Q2013”)

Material fluctuations of items are explained below:

Revenue

Revenue increased by RMB106.9 million from RMB201.9 million in 1Q2013 to RMB308.8 million in 1Q2014 due to higher orders during the period.

Gross profit margin

Gross profit margin decreased from 19.2% in 1Q2013 to 16.8% in 1Q2014, primarily due to lower margins arising from keen competition during the period.

Operating expenses

Overall operating expenses increased by RMB5.0 million from RMB25.3 million in 1Q2013 to RMB30.3 million in 1Q2014. The changes in the respective expenses are detailed below.

(i) Selling & distribution expenses

Selling and distribution expenses increased by RMB3.8 million in line with the increase in sales activities during the period.

(ii) Administrative expenses

Administrative expenses decreased by RMB1.7 million due to certain cost reductions during the period.

(iii) Other operating expenses

Other operating expenses increased by RMB2.9 million mainly arising from an increase in R&D expenses from continuing research for new product specifications as requested by customers.

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Finance costs

Finance costs comprise of bank interest expenses.

Finance costs decreased by RMB0.4 million in 1Q2014 compared to 1Q2013. The lower cost of financing compared to the same period last year attributed to the decrease in finance costs.

Profit before income tax

Profit before income tax increased by RMB8.2 million to RMB23.2 million arising from higher revenue generated in 1Q2014.

Income tax expense

The Group’s main operating subsidiary is subject to an incentive tax rate of 15% in accordance to its award as a high-tech enterprise since September 2011.

Net profit

In view of the above, net profit increased by RMB8.0 million to RMB19.8 million in 1Q2014 compared to RMB11.8 million in 1Q2013.

STATEMENT OF FINANCIAL POSITION

Material fluctuations of items are explained below:

Pledged cash deposits

Pledged cash deposits are used as security for commercial bills used for payment to suppliers. Pledged cash deposits decreased by RMB0.5 million from RMB2.0 million as at 31 December 2013 to RMB1.5 million as at 31 March 2014 as the Group had lower amount of commercial bills during the period.

Trade receivables

Trade receivables increased by RMB117.5 million from RMB656.8 million as at 31 December 2013 to RMB774.3 million as at 31 March 2014.

Average trade receivables turnover is 211 days as at 31 March 2014 compared to 193 days as at 31 December 2013.

Most of the trade receivables balances are recent sales which are within the average credit period given to our customers.

For amounts due more than six months and longer, these mainly pertain to final payment (upon project completion) owed by the three main PRC telecom operators. These outstanding balances relate to projects undertaken by these operators which had longer project completion date than as initially anticipated. These operators have been the Group’s long-time customers and the Group has been receiving regular payments from them. In addition, the majority of these outstanding balances pertain to one of the telecom operators in the PRC. In view of the Group’s long-standing dealings with them and the regular receipts it had obtained from these customers, the Group does not foresee any issue in the collection of these receivables.

The Group will endeavour to continue its collection efforts on the outstanding balances.

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Other receivables and prepayments

Other receivables and prepayments increased by RMB48.0 million to RMB87.1 million as at 31 March 2014 compared to RMB39.1 million as at 31 December 2013. In order to enjoy a favourable pricing framework on raw materials, advance payment amounting to RMB57.6 million were made to certain key suppliers, which contributed to the increase during the period.

Property, plant and equipment

Property, plant and equipment decreased by RMB2.6 million due to depreciation expenses during the period amounting RMB4.5 million, which is partially offset by certain additions amounting RMB1.9 million.

Short-term loans

Short-term loans (being denominated in USD) increased marginally by RMB1.0 million due to revaluation differences.

Trade payables and Other payables

Trade payables decreased by RMB16.7 million from RMB126.3 million as at 31 December 2013 to RMB109.6 million as at 31 March 2014 due to certain payments made to suppliers during the period.

Other payables and accruals decreased by RMB15.4 million from RMB34.8 million as at 31 December 2013 to RMB19.4 million as at 31 March 2014 as certain accruals made in 2013 were paid during the period.

Income tax payable

Income tax payable increased by RMB2.6 million from RMB0.7 million as at 31 December 2013 to RMB3.3 million as at 31 March 2014 as a result of higher profits generated during the period.

Cash and bank equivalents

Cash and bank equivalents decreased by RMB169.0 million from RMB372.2 million as at 31 December 2013 to RMB203.2 million as at 31 March 2014 due mainly to working capital being used for credit given to customers during the period.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

No forecast or a prospect statement has been previously disclosed.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

The issuance of 4G licences to the three telecom operators in the PRC by the Ministry of Industry and Information Technology last year is expected to translate into maintaining a stable demand for our products in the near term.

Nonetheless, as the average revenue per user (ARPU) of telecom operators has either remained relatively constant or witnessed a steady decline, this is likely to result in their selective capital spending, more vigorous tenders for our products, or their projects being curtailed or deferred.

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These factors will generally exert a constant downward pressure on the Group’s margins.

Notwithstanding the above, the Group remains committed to broaden its product variety as well as enhance its branding in expanding the Group’s business contributors in the long run.

The above note contains forward looking statements that involve a fair amount of uncertainties pertaining to future operating conditions. Actual future performance may differ from those views expressed as a result of a number of uncertainties and assumptions such as the general economy and industry conditions, level of market competition and shift in supply or demand patterns. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.

11. Dividend

(a) Current Financial Period Reported On

Any dividend recommended for the current financial period reported on?

No.

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year?

No.

(c) Date payable

Not applicable.

(d) Books closure date

Not applicable.

12. If no dividend has been declared (recommended), a statement to that effect.

Not applicable.

13. If the Group has obtained a general mandate from shareholders for Interested Person Transactions (“IPTs”), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.

The Group did not obtain a general mandate from shareholders for IPTs.

14. Use of IPO Proceeds

As at the date of the financial period reported on, the Company has utilised approximately RMB71.2 million of the net proceeds raised from the dual primary listing on the Stock Exchange of Hong Kong Limited (the “ IPO Proceeds ”).

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The details of the use of the IPO Proceeds are tabulated below:

Intended Use Diversify product portfolio of High Temperature Resistant Cables Diversify product portfolio of Antennas Expansion of sales network into overseas market Enhance research and development General working capital Total	Allocated Used RMB’000 RMB’000 7,130(1) (6,323) 35,370 (35,370) 7,382 (1,429) 7,382 (4,259) 23,859 (23,859) 81,123 (71,240)	Balance RMB’000 807 — 5,953 3,123 —
		9,883

(1) Please refer to the Company’s announcement dated 9 October 2012 on the change in use of proceeds.

• (2) The breakdown of the use of proceeds for general working capital is as follows:

Details Purchase of raw materials Purchase of equipment General admin expenses Total	Used RMB’000 22,918 495 446
	23,859

PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

15. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year.

Not applicable.

16. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.

Not applicable.

17. Breakdown of sales

Not applicable.

18. Total annual dividend

Not applicable.

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19. Negative assurance

We, Cui Genxiang and Xu Guoqiang, being two directors of the Company, do hereby confirm on behalf of the Board that, to the best of the Board’s knowledge, nothing has come to the attention of the Board which may render the 1Q2014 financial results to be false or misleading in any material aspect.

On behalf of the board of directors of Hengxin Technology Ltd.

Cui Genxiang Xu Guoqiang Executive Chairman Executive Director

Singapore 14 May 2014

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