WH Group Limited — Capital/Financing Update 2020

Nov 6, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”) 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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China Baoli Technologies Holdings Limited 中國寶力科技控股有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 164)

VOLUNTARY ANNOUNCEMENT

This announcement is made by the board (the “ Board ”) of directors (the “ Director(s) ”) of China Baoli Technologies Holdings Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) on a voluntary basis.

The Board is pleased to announce that on 2 November 2020, Shanghai YunYao Culture & Media Limited* (上海雲遙文化傳媒有限公司) (“ YunYao ”), a wholly-owned subsidiary of the Company, XinHua Tong Yun Culture (Beijing) Limited* (新華通運文化（北京）有 限公司) (“ XinHua Tong Yun ”) and KeMeng (Changzhou) Culture & Media Limited* (可夢（常州）文化傳媒有限公司) (“ KeMeng ”) entered into a business cooperation in relation to the formation of XinHua KeMeng Technologies (Beijing) Limited* (新華可 夢科技（北京）有限公司) (the “ JV Company ”), a joint venture company in the People’s Republic of China (“ PRC ”). This JV Company is principally engaged in providing an influencer marketing platform, online live streaming, brand management and the ancillary online/offline e-commerce marketing services.

Upon incorporation, the JV Company will be an associate of the Company.

Information on the JV Company

The JV Company is principally engaged in providing an influencer marketing platform, online live streaming, brand management and the ancillary online/offline e-commerce marketing services (the “ Project ”). Social media has become a core marketing strategy for brands in China. This trend gives rise to the blooming of the PRC’s influencer economy. According to Chinese technology research firm TopKlout, the Chinese influencer market is predicted to be worth about RMB300 billion in 2020.

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The word “influencer” applies to people who are bloggers, online content creators, live streaming presenters and traditional celebrities. Influencer also refers to online marketing practitioners, including but not limited to the key opinion leaders (“ KOLs ”) or online celebrities (網紅) (“ WangHongs ”).

To promote the Project, all parties will leverage their respective resources and competitive advantages to fully utilize the influencers marketing platform across different media. Apart from traditional brand collaborations and e-commerce via mobile, the JV Company aims to extend its reach to other media, such as train network, a daily channel for millions of people.

The registered capital of the JV Company is RMB1 million (equivalent to approximately HK$1.16 million). The JV Company will be held as to 51% by XinHua Tong Yun, 34% by KeMeng and 15% by YunYao respectively and all parties will contribute the relevant registered capital to the JV Company pursuant to their respective equity interest.

Reasons and Benefits of the Formation of the JV Company

The Directors are of the view that the formation of the JV Company provides an excellent opportunity for the Company to expand its business portfolio into the fast-growing influencer market in the PRC.

The Group has gained a strong foothold in the industry of multi-media technologies in China. The Group has also accumulated technologies, expertise, network and software resources in the construction of scalable multi-media sharing and advertising platforms and the dissemination and transmission of information via such platforms. The formation of the JV Company can create synergetic effect and create additional revenue to the Group’s multi-media technologies business and improve the Group’s profitability to deliver longterm benefits to the Group and the shareholders of the Company.

Accordingly, the Directors believe that the formation of the JV Company will be in the interest of the Group and its shareholders as a whole.

Information of XinHua Tong Yun

XinHua Tong Yun is a PRC registered company incorporated in 2019. The shareholders include 北京英華杰科技發展有限公司, 北京視銳達科技有限公司 and XinHuaTong Network Limited* 新華通網絡有限公司. XinHuaTong Network Limited is a non-wholly owned subsidiary of China Finance Corporation* (中經社控股有限公司). China Finance Corporation is a directly owned company of XinHua News Agency.

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, as at the date of this announcement, XinHua Tong Yun and its ultimate beneficial owners are independent of the Company and connected persons of the Company.

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Information of KeMeng

KeMeng is a limited liability company incorporated in the PRC and is one of the prominent live streaming content providers and operators in the PRC. KeMeng is one of the official content providers on the multi-channel network (“ MCN ”) of Douyin, a Chinese videosharing social networking service platform owned by ByteDance. KeMeng has signed up more than 3,000 influencers, KOLs and WangHongs in the PRC. These influencers have accumulated more than 320 million fans across social platforms in the PRC, such as Douyin, Bilibili, Taobao and Weibo, etc. Collaborate brands include but not limited to Oreo, Chang An Auto and Audi, etc.

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, as at the date of this announcement, KeMeng and its ultimate beneficial owners are independent of the Company and connected persons of the Company.

LISTING RULES IMPLICATIONS

This announcement is made by the Company on a voluntary basis. None of the applicable percentage ratio(s) as set out in Rule 14.07 of the Rules Governing the Listing of the Securities on the Stock Exchange in respect of the commitment of the Company to the JV Company exceeds 5%, therefore this does not constitute a notifiable transaction of the Company.

CONTINUED SUSPENSION OF TRADING

At the request of the Company, trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 2 July 2019 and will remain suspended until further notice pending the fulfilment of the resumption conditions.

By order of the Board China Baoli Technologies Holdings Limited Zhang Yi Chairman

Hong Kong, 6 November 2020

As at the date of this announcement, the executive Directors are Mr. Zhang Yi (Chairman), Ms. Chu Wei Ning (Chief Executive Officer) and Ms. Lam Sze Man; and the independent non-executive Directors are Mr. Chan Fong Kong, Francis, Mr. Chan Kee Huen, Michael and Mr. Feng Man.

• For identification purpose

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