Hony Media Group — Capital/Financing Update 2015

Aug 20, 2015

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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CHINA STRATEGIC HOLDINGS LIMITED 中策集團有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 235)

COMPLETION OF THE PLACING OF NEW SHARES UNDER SPECIFIC MANDATE

Placing Agent

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Sub-placing agent

Reference is made to the announcement of China Strategic Holdings Limited (the “Company”) dated 20 May 2015 and the circular of the Company dated 29 June 2015 (the “Circular”) in relation to, among others, the proposed Placing of a maximum of 7,000,000,000 Placing Shares at a price of HK$0.15 per Placing Share. Unless otherwise defined, all capitalised terms used herein shall have the same meanings as defined in the Circular.

COMPLETION OF THE PLACING

The Board is pleased to announce that all conditions precedent of the Placing as set out in the Placing and Underwriting Agreement have been fulfilled with all the 7,000,000,000 Placing Shares having been successfully placed by/through the Placing Agent. The Placing was completed on 20 August 2015.

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The net proceeds from the Placing amounting to approximately HK$1,022 million, together with the net proceeds raised from the Rights Issue, will be used as working capital for expansion of the existing businesses of the Company and any future business opportunities to be identified by the Company including but not limited to the potential acquisition of online shopping business as disclosed in the announcements of the Company dated 15 May 2015 and 13 August 2015.

To the best of the Directors’ knowledge, information and belief, having made all reasonable enquiries, the Placees and their respective ultimate beneficial owners are Independent Third Parties and none of the Placees becomes a substantial Shareholder of the Company immediately upon completion of the Placing.

SHAREHOLDING STRUCTURE OF THE COMPANY

The shareholding structure of the Company immediately before and after completion of the Placing, which has already taken into account the effect of the completion of the Rights Issue with details as set out in the announcement of the Company dated 19 August 2015, is set out as follows:

ShareholdersPublic ShareholdersPlaceesTotal	Immediately beforecompletion of thePlacingNumberof Shares%9,987,713,835100.00——9,987,713,835100.00	Immediately aftercompletion of thePlacingNumberof Shares%9,987,713,83558.797,000,000,00041.2116,987,713,835100.00	Immediately aftercompletion of thePlacingNumberof Shares%9,987,713,83558.797,000,000,00041.2116,987,713,835100.00
			100.00

By Order of the Board China Strategic Holdings Limited Or Ching Fai Chairman

Hong Kong, 20 August 2015

As at the date of this announcement, the Board comprises five Executive Directors, namely Dr. Or Ching Fai (Chairman and Chief Executive Officer), Mr. Sue Ka Lok, Ms. Lee Chun Yeung, Catherine, Mr. Hui Richard Rui and Mr. Chow Kam Wah; and three Independent Non-executive Directors, namely Ms. Ma Yin Fan, Mr. Chow Yu Chun, Alexander and Mr. Leung Hoi Ying.

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