Web3 Meta Limited — Capital/Financing Update 2017

Sep 15, 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.

MILLION STARS HOLDINGS LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8093)

SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO DISCLOSEABLE TRANSACTION ACQUISITION OF THE ENTIRE EQUITY INTERESTS IN BEIJING DONGRUN HUDONG TECHNOLOGY COMPANY LIMITED

Reference is made to the announcement of the Company made on 5 September 2017 in relation to the acquisition of the entire equity interests in Beijing Dongrun Hudong Technology Company Limited (the “ Announcement* ”). Unless otherwise stated, terms used in this announcement shall have the same meaning as those used in the Announcement. This announcement is intended to provide Shareholders with further information on the Target Company.

INFORMATION OF THE TARGET COMPANY

The Target Company was incorporated on 27 April 2017 with limited liability in the People’s Republic of China (“ PRC ”) and has not made any net profits (both before and after taxation) for the period ended 30 June 2017 beginning on 27 April 2017 (the date of incorporation). According to the PRC legal advisers of the Company, the main business of the Target Company is the designing of advertisement and acting as agents for advertising business and does not involve any provision of internet information service. As at 30 June 2017, its major assets comprise of deposits held in bank of approximately RMB2,700,000 and account receivables of approximately RMB9,000,000. The source of income of the Target Company for the period ended 30 June 2017 was mainly derived from advertising income.

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BUSINESS OF THE TARGET COMPANY

In accordance with the legal opinion issued by the PRC legal advisers of the Company, the main business of the Target Company is the designing of advertisement and acting as agents for advertising business and does not involve any provision of internet information service. Accordingly, the Target Company is not engaging in a “restricted” or “prohibited” business to foreign investors under the 2017 PRC Foreign Investment Catalogue. Moreover, according to the PRC legal advisers of the Company, the main business of the Target Company is now not subject to the Regulations on the Administration of Foreign-invested Advertising Enterprises (“ Regulations ”) as the Regulations have been repealed in June 2015 by the State Administration for Industry and Commerce of PRC. As such, the Target Company is not in breach of and is not in violation of the 2017 PRC Foreign Investment Catalogue and the Regulations and that the Acquisition is in compliance with the relevant PRC laws and regulations.

REASONS FOR THE ACQUSITION

The book value of the Target Company was at a loss primarily due to the incurrence of one-off expenses in relation to its incorporation on 27 April 2017. The Board has reviewed the management accounts of the Target Company and was satisfied with the future business prospects of the Target Company. It is expected that the Target Company will generate income in fourth quarter in 2017. Moreover, as the Target Company has already set up working teams and started to develop its customer base, the Board was of the view that it would be more cost-efficient to acquire the equity interests of the Target Company and the consideration was on normal commercial terms and was fair and reasonable.

The Board also noted that the manufacturing business of leather garments has been deteriorating and is of the view that the entry and development of the advertisement business may generate a higher return and can diversify the revenue stream of the Company and would be in the interests of the Company and its Shareholders as a whole.

By Order of the Board Million Stars Holdings Limited ZHU Yongjun Chairman

Hong Kong, 15 September 2017

As at the date hereof, the Board comprises Mr. Zhu Yongjun, Ms. Wang Fei, Mr. Tang Yau Sing and Ms. Tian Yuan as executive Directors; and Mr. Cheung Kam Tong Antonio, Mr. Chui Man Lung Everett and Mr. Han Chu as independent non-executive Directors.

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This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company.

The directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading. This announcement will remain on the GEM website at http://www.hkgem.com on the “Latest Company Announcements” page for at least 7 days from the day of its publication and on the website of the Company at http://www.millionstars.hk.

*for identification purpose only

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