Synertone Communication Corporation — Capital/Financing Update 2021

Apr 14, 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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協同通信集團有限公司 Synertone Communication Corporation

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1613)

COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcement of the Company dated 19 March 2021 (the “ Announcement ”) in relation to the placing of new Shares of the Company under the General Mandate. Capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement unless defined otherwise.

COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that all the conditions of the Placing Agreement have been fulfilled and completion of the Placing took place on 14 April 2021. An aggregate of 162,000,000 Placing Shares were allotted and issued to not less than six Placees at the Placing Price of HK$0.25 per Placing Share pursuant to the terms and conditions of the Placing Agreement, representing approximately 13.56% of the issued share capital of the Company as enlarged by the allotment and issue of the Placing Shares immediately upon completion of the Placing.

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiry, each of the Placees and their respective ultimate beneficial owners is an independent third party. None of the Placees has become a substantial Shareholder (as defined in the Listing Rules) immediately after completion of the Placing.

The net proceeds from the Placing are approximately HK$39.9 million. The Company intends to apply the net proceeds from the Placing as general working capital and/or further investments of the Group as and when the opportunities arise.

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EFFECT ON SHAREHOLDING STRUCTURE OF THE COMPANY UPON COMPLETION OF THE PLACING

The shareholding structure of the Company immediately before completion of the Placing and upon completion of the Placing are set out as follows:

ShareholdersExcel Time InvestmentsLimited (“Excel Time”)(Note 1)Mr. Han Weining (“Mr. Han”)(Note 2)Mr. Lam Siu SunMr. Gao JieminPlaceesOther public ShareholdersTotal	Immediately beforecompletion of the PlacingNumber ofShares heldApproximate %of total Sharesin issue238,942,05923.158,160,0000.79172,000,00016.6697,716,8009.47––515,544,34149.931,032,363,200100.00	Immediately uponcompletion of the PlacingNumber ofShares heldApproximate %of total Sharesin issue238,942,05920.018,160,0000.68172,000,00014.4097,716,8008.18162,000,00013.56515,544,34143.171,194,363,200100.00

Notes:

1. Excel Time is wholly and beneficially owned by Mr. Han, the chief executive officer of the Company and an executive Director. By virtue of the SFO, Mr. Han is deemed to be interested in 238,942,059 Shares held by Excel Time.

2. Mr. Han also holds 8,160,000 Shares as beneficial owner.

By order of the Board Synertone Communication Corporation

Han Weining

Executive Director and Chief Executive Officer

Hong Kong, 14 April 2021

As at the date of this announcement, the executive Director is Mr. Han Weining; and the independent non-executive Directors are Mr. Lam Ying Hung Andy, Mr. Wang Chen and Ms. Li Mingqi.

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