Skyworth Group Limited — Capital/Financing Update 2021

Sep 15, 2021

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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SKYWORTH GROUP LIMITED 創 維 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 00751)

BUSINESS UPDATE

The board of directors of Skyworth Group Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) wishes to provide an update on the business performance of the Group. As disclosed in the Company’s interim report for the six months ended 30 June 2021, the Group has recorded improvement for its revenue, gross profit and profit after tax of approximately 41.2%, 21.4% and 6.5% respectively over those for the six months ended 30 June 2020 despite a decrease in gross profit margin. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the eight months ended 31 August 2021 (the “ August Management Accounts ”), the board of directors of the Company (“ Board ”) notes that such improvement has continued in July and August 2021 although the Board still maintains a cautiously optimistic view about the Group’s business performance for the remaining four months in 2021 and therefore cannot be confident that such improvement will carry over to the rest of 2021.

The Group’s results for the eight months ended 31 August 2021 have also been positively affected by the share price performance of 普冉半導體（上海）股份有限公司 (Puya Semiconductor (Shanghai) Co., Ltd.) (“ Puya Semiconductor ”) (stock code: 688766) in which the Group made an investment before the listing of its shares on the Shanghai Stock Exchange Science and Technology Innovation Board on 23 August 2021. The Group currently holds 1,076,377 shares in Puya Semiconductor, which shares are subject to a lock-up period of twelve to nineteen months from the listing date. To the extent there is any difference between the Group’s historical investment costs in Puya Semiconductor’s shares and the valuation amount of these shares as at a certain date, the Group may record a fair value gain or loss. The valuation amount of Puya Semiconductor’s shares will be subject to a number of factors including the prevailing trading price of these shares (the closing price of the shares of Puya Semiconductor on the date of listing was RMB485.1 per share and as at 31 August 2021, the closing price was RMB443.0 per share) and the marketability discount which may be applicable in respect of lock-up periods to which these are shares are subject. As such, the actual amount of any actual fair value gain or loss that may be contributed by the Group’s investment in Puya Semiconductor for the 2021 full financial year can only be ascertained after the valuation of the Group’s equity holdings in Puya Semiconductor as at 31 December 2021 becomes available.

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In addition to Puya Semiconductor, the Group has also made other medium- to long-term investments in its other business partners which shares may or have become publicly listed, e.g. 貴 州振華新材料股份有限公司 (Guizhou Zhenhua E-chem Inc.) (“ ZEC ”) (stock code: 688707) which shares were listed on the Shanghai Stock Exchange Science and Technology Innovation Board on 14 September 2021 (the closing price of ZEC’s shares on that date amounted to RMB46.8 per share). The Group currently holds 1,440,000 shares in ZEC which shares are subject to a lock-up period of twelve months since the listing date of ZEC.

Similar to the Group’s investment in Puya Semiconductor, the share price performance of these investee companies may also have an effect on the overall results of the Group. Further details of the other listed and unlisted equity securities investments by the Group and the reasons underlying such investments are set out in the Group’s interim report for the six months ended 30 June 2021.

The Board wishes to emphasise that (i) the amount of any fair value gain or loss which may be recognised by the Group is subject to fluctuation and the actual valuation of the relevant equity holdings on a future date; and (ii) the results of the Group may be affected by a number of other factors, including but not limited to the Group’s performance for the remaining period of 2021. Consequently, shareholders of the Company and potential investors are advised to exercise caution and should not rely on such information when dealing in the securities of the Company.

By order of the Board Skyworth Group Limited Lai Weide Chairman of the Board

Hong Kong, 15 September 2021

As at the date of this announcement, the Board comprises Mr. Lai Weide as the Chairman of the Board, Mr. Liu Tangzhi as executive Director and the chief executive officer, Ms. Lin Wei Ping, Mr. Shi Chi, Mr. Lin Jin and Mr. Lam Shing Choi, Eric as executive Directors; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Hung Ka Hai, Clement as independent non-executive Directors.

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