Hengxin Technology Ltd. — Management Reports 2013

Mar 1, 2013

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

This overseas regulatory announcement is issued pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Hengxin Technology Ltd. (the ‘‘Company’’) has published an announcement regarding ‘‘Response to query from Singapore Exchange Securities Trading Limited’’ on the website of the Singapore Exchange Securities Trading Limited on 1 March 2013, the full text of which is set out on the next page for information purpose only.

On behalf of the Board Hengxin Technology Ltd. Cui Genxiang Executive Chairman

Hong Kong, 1 March 2013

As at the date of 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 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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HENGXIN TECHNOLOGY LTD. (Company Registration No. 200414927H) (Incorporated in Singapore)

RESPONSE TO QUERY FROM SINGAPORE EXCHANGE SECURITIES TRADING LIMITED

The Board of Directors of Hengxin Technology Ltd (the ‘‘Company’’ or ‘‘Group’’) refers to the announcement of the unaudited financial results of the Company and the Group for the fourth quarter ended 31 December 2012 (‘‘Results Announcement’’) released to Singapore Exchange Securities Trading Limited (‘‘SGX-ST’’) on 20 February 2013 (Announcement No. 00119).

The Company has received the following queries from SGX-ST and wishes to provide the information as set out below:

SGX-ST Query 1

‘‘We note from page 16 of the announcement that the Company has not incurred any change in the share capital. Please disclose the information using the format as seen in Appendix 7.2, Paragraph 1(d).’’

Company’s Response

Part I Information Required for Quarterly (Q1, Q2 & Q3), Half-Year and Full Year Announcements

(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 capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

The following statement was made by the Company on pages 9 and 10 of the Results Announcement:

STATEMENT OF CHANGES IN EQUITY

Consolidated Statement of Changes in Equity for the year ended 31 December 2012

GROUP — RMB’000 Balance at 1 January 2012 Total comprehensive income for the year Transfer to reserves Balance at 31 December 2012	Share capital 295,000 — — 295,000	General reserve 122,889 — 11,492 134,381	Special reserve (6,017) — — (6,017)	Translation reserve (294) (804) — (1,098)	Accumulated profits 527,396 67,278 (11,492) 583,182	Total 938,974 66,474 —
						1,005,448

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Consolidated Statement of Changes in Equity for the year ended 31 December 2011

GROUP — RMB’000 Balance at 1 January 2011 Total comprehensive income for the year Transfer to reserves Dividends Balance at 31 December 2011	Share capital 295,000 — — — 295,000	General reserve 104,839 — 18,050 — 122,889	Special reserve (6,017) — — — (6,017)	Translation reserve (4) (290) — — (294)	Accumulated profits 458,891 102,249 (18,050) (15,694) 527,396	Total 852,709 101,959 — (15,694)
						938,974

Statement of Changes in Equity of the Company for the year ended 31 December 2012

COMPANY — RMB’000 Balance at 1 January 2012 Total comprehensive income for the year Balance at 31 December 2012	Share capital 295,000 — 295,000	Accumulated profits 130,840 (8,758) 122,082	Total 425,840 (8,758)
			417,082

Statement of Changes in Equity of the Company for the year ended 31 December 2011

COMPANY — RMB’000 Balance at 1 January 2011 Total comprehensive income for the year Dividends Balance at 31 December 2011	Share capital 295,000 — — 295,000	Accumulated profits 131,648 14,886 (15,694) 130,840	Total 426,648 14,886 (15,694)
			425,840

(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.

Share capital — Ordinary Shares Balance as at 31 December 2011 and 31 December 2012	No. of shares ’000 388,000	RMB’000 295,000

There were no changes in the issued share capital of the Company for the fourth quarter and twelve months ended 31 December 2012.

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(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 at 31 December 2011 and 31 December 2012, there were no treasury shares.

(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.

SGX-ST Query 2

‘‘As noted from page 17 of the announcement, the aging of trade receivables of over 360 days increased by over two-fold. Please disclose the reason(s) for the increase in the aging of the trade receivables of over 360 days and whether the Company foresees any issue in the collection of these receivables.’’

Company’s Response

The breakdown of the outstanding trade receivables over 360 days is as follows:

Debtors PRC’s 3 major telcos Other telecom suppliers Total	Amount (RMB million) 29.2 5.9 35.1	Proportion (%) 83.2 16.8
		100

The outstanding amounts of more than 360 days relate to retention monies of different telecom infrastructure projects in the PRC. A certain percentage pertaining to the total sales order of each project is set aside, only to be paid when the project is being completed. Depending on the size of each project, project completion can extend to more than a year. The various telecom infrastructure projects in relation to these receivables took a longer period of time for completion, and thus stretched the Group’s trade receivables aging. The Group understands that these projects are currently in progress and will eventually be completed.

The debtors stated in the table above have been the Group’s long-time customers and relate mainly to the three main telecom operators in the PRC, and the Group have been receiving regular payments from them. 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.

By Order of the Board

Cui Genxiang Executive Chairman

1 March 2013

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