SIM Technology Group Limited — Capital/Financing Update 2017

Jul 7, 2017

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.

==> picture [109 x 73] intentionally omitted <==

SIM TECHNOLOGY GROUP LIMITED 晨訊科技集團有限公司 *

(Incorporated in Bermuda with limited liability)

(Stock code: 2000)

ANNOUNCEMENT

POSSIBLE DISPOSAL OF TECHNOLOGY AND ASSETS IN RELATION TO WIRELESS COMMUNICATION MODULES BUSINESS

The board (“ Board ”) of directors (“ Director ”) of SIM Technology Group Limited (“ Company ”, together with its subsidiaries, the “ Group ”) would like to inform the shareholders and potential investors of the Company that on 7 July 2017, the Group entered into a letter of intent (“ LOI ”) with 上海移为通信技术股份有限公司 (Queclink Wireless Solutions Co., Ltd.) (“ First Purchaser ”) and Richjoy Talent Limited (“ Second Purchaser ”) for a possible disposal of two wholly-owned subsidiaries of the Company (“ Target Companies ”) which own or will own all the technology, patents and software copyrights relevant to 2G, 3G and 4G wireless communication module, GNSS module and the wireless communication modules business of the Group (“ Possible Disposal ”).

The First Purchaser is a company listed on the Shenzhen Stock Exchange (SHE:300590). The Second Purchaser is a company wholly-owned by Mr Wong Hei, the son of Mr Wong Cho Tung and Ms Yeung Man Ying, each an executive Director and therefore is a connected person of the Company. It is intended that the First Purchaser and the Second Purchaser will purchase 67% and 33% of the equity interest of the Target Companies respectively.

Pursuant to the LOI, the Group has agreed that during a period of 60 days from the date of the LOI, the Group will not enter into any discussions, agreement or understanding with any other party which will be in contravention to the Possible Disposal.

The LOI, save for certain provisions relating to confidentiality, exclusivity and certain miscellaneous provisions, is non-legally binding in nature.

The Possible Disposal, if materialised, will constitute a notifiable transaction and connected transaction of the Company under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“ Listing Rules ”). Further announcement(s) in relation to the Possible Disposal will be made by the Company as and when appropriate in accordance with the Listing Rules.

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules).

By order of the Board SIM Technology Group Limited Wong Cho Tung Executive Director

7 July 2017

As at the date of this announcement, the executive directors of the Company are Ms Yeung Man Ying, Mr Wong Cho Tung, Ms Tang Rongrong, Mr Chan Tat Wing, Richard, Mr Liu Hong and Mr Liu Jun, and the independent non-executive directors of the Company are Mr Liu Hing Hung, Mr Wang Tianmiao and Mr Wu Zhe.

• For identification purposes only