SIM Technology Group Limited — Regulatory Filings 2012

Jul 31, 2012

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

(Incorporated in Bermuda with limited liability)

(Stock code: 2000)

PROFIT WARNING

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules.

The Board wishes to inform the shareholders of the Company and potential investors that it is the current estimate of the Company’s management that the Group is likely to incur further loss for 1H 2012 as compared to the same period in 2011.

Please note that the information contained in this announcement is only based on the preliminary assessment by the Board with reference to the information currently available. Such information has not been audited or reviewed by the auditors of the Company and that the actual results for the Group may be different from what is disclosed herein. Shareholders and investors should read carefully the interim results announcement of the Company for 1H 2012, which is expected to be published on or around 21 August 2012.

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

This announcement is made by SIM Technology Group Limited (the “ Company ”, together with its subsidiaries shall be referred to as 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 ”).

The board of directors of the Company (the “ Board ”) wishes to inform the shareholders of the Company and potential investors that it is the current estimate of the Company’s management that the Group is likely to incur further loss for the six months ending 30 June 2012 (“ 1H 2012 ”) as compared to the same period in 2011. Such loss is primarily attributable to the reasons as follows: (i) the global handsets market condition is extremely severe, the Group was facing fierce price competition in smart phones sales and the gross profit margin of the centralized purchase of smart phones by Mainland operators are too low; (ii) the sales volume of smart phones in open market were lower than expected; (iii) high-end ODM sales were also lower than expected due to the difficulties in operations experienced by the Group’s customers; and (iv) the loss has widened as a result of the drop in gross profit margin of handsets and that the research and development expenses and other expenses have remained high. The management of the Company has also estimated a probable recognition of impairment on the goodwill arising from the acquisition of Smartwireless Technology Limited in year 2009. The exact amount of the impairment on the goodwill is yet to be determined. The Board would like to emphasize that the impairment on goodwill is a non-cash accounting treatment and has no effect on the cash flow of the Group’s operations.

Please note that the information contained in this announcement is only based on the preliminary assessment by the Board with reference to the information currently available. Such information has not been audited or reviewed by the auditors of the Company and that the actual results for the Group may be different from what is disclosed herein. Shareholders and investors should read carefully the interim results announcement of the Company for 1H 2012, which is expected to be published on or around 21 August 2012.

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 SIM Technology Group Limited Wong Cho Tung Director

Hong Kong, 31 July 2012

As at the date of this announcement, the executive directors of the Company are Ms Yeung Man Ying, Mr Wong Cho Tung, Mr Wong Hei, Simon, Mr Zhang Jianping, Ms Tang Rongrong and Mr Chan Tat Wing, Richard, and the independent non-executive directors of the Company are Mr Liu Hing Hung, Mr Xie Linzhen and Mr Dong Yunting.

• For identification purposes only