PegBio Co., Ltd. — Capital/Financing Update 2016

Feb 4, 2016

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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(Incorporated in Bermuda with limited liability)

(Stock Code: 1141)

BUSINESS UPDATE

This announcement is made by Skyway Securities Group Limited (the “Company”, together with its subsidiaries, the “Group”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The Board of Directors of the Company (the “Board”) would like to provide a business update to its shareholders and potential investors of the Group’s operation progress and performance.

SECURITIES INVESTMENT

The stock market in Hong Kong has been volatile recently in tandem with the international equity market and the market sentiment has been adversely affected by a number of factors including the trend of interest rate, the state of the world economy and in particular the slowdown of economic growth in mainland China. The proprietary trading team of the Company has maintained a careful monitor of this situation and in particular how this has varying impacts on different segments of the economy. As a result, it has been decided to restructure the composition of its securities portfolio. In the process of this, the Company has part of its then existing portfolio of listed securities held by the Group for an aggregate gross proceeds of approximately HK$290 million (the “Disposal”), resulting an unaudited net realized loss of investments at fair value through profit or loss of approximately HK$610 million. After the aforesaid disposal, as at the date of this announcement, the Group holds investments at fair value through profit or loss of approximately HK$560 million and the Group intends to continue to hold these investments at the present time.

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Despite the current unsatisfactory performance in the local stock market, the Board believes that good investment opportunities may still arise in the financial market in view of the launch of Shanghai-Hong Kong Stock Connect in late 2014 and the development strategy of “Belt and Road Initiative” by the Chinese government. Accordingly, securities investment will remain as a principal line of business of the Group and the Company will monitor the market closely in order to seize investment opportunities. The Company will maintain its current focus on securities investments and the Disposal is not intended to reduce the Company’s commitment to this sector of business. As such the gross proceeds remain earmarked for the purpose of securities investments.

With reference to the announcements of the Company on 17 August 2015 and 23 October 2015, up to the date of this announcement, the Group has an unaudited net realized loss and net unrealized loss of investments at fair value through profit or loss of approximately HK$830 million and approximately HK$560 million respectively.

REAL ESTATE INVESTMENT

In view of the current adjustment in the local property market, the Board will closely monitor the market in order to seize investment opportunities.

The information contained in this announcement has not been confirmed, audited nor reviewed by the Company’s auditors. The actual amount of the net gains or losses from the sale of investments at fair value through profit or loss may subject to necessary adjustments.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board Skyway Securities Group Limited Ng Kwok Leung Executive Director

Hong Kong, 4 February 2016

As at the date of this announcement, the Directors are as follows:

Executive Directors: Independent Non-executive Directors: Mr. Suen Yick Lun Philip Mr. Siu Siu Ling Robert (Acting Chairman and Managing Director) Mr. Chan Kwan Pak Mr. Tam Tak Wah Mr. Siu Gee Tai Mr. Ng Kwok Leung

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