Zengame Technology Holding Limited — Capital/Financing Update 2021

Jan 6, 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.

Zengame Technology Holding Limited 禪遊科技控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2660)

DISCLOSEABLE TRANSACTION SUBSCRIPTIONS OF WEALTH MANAGEMENT PRODUCTS

SUBSCRIPTIONS OF WEALTH MANAGEMENT PRODUCTS

The Board announces that on 6 January 2021, Shenzhen Laiwan subscribed for (i) the First Wealth Management Product in a principal amount of RMB25 million; and (ii) the Second Wealth Management Product in a principal amount of RMB25 million, both offered by Ping An Bank.

IMPLICATION UNDER THE LISTING RULES

As the highest applicable ratio of the aggregated subscriptions of the Wealth Management Products exceeds 5% but is less than 25%, the subscriptions of the Wealth Management Products constitute a discloseable transaction of the Company and are hence subject to the reporting and announcement requirements but are exempted from the circular and Shareholders’ approval requirements under Chapter 14 of the Listing Rules.

SUBSCRIPTIONS OF THE WEALTH MANAGEMENT PRODUCTS

The Board announces that on 6 January 2021, Shenzhen Laiwan subscribed for (i) the First Wealth Management Product in a principal amount of RMB25 million; and (ii) the Second Wealth Management Product in a principal amount of RMB25 million, both offered by Ping An Bank.

– 1 –

Shenzhen Laiwan entered into two subscription agreements with Ping An Bank on 6 January 2021 for the subscriptions of the Wealth Management Products in an aggregated amount of RMB50 million. The major terms of the subscription agreements are set out as follows:

(A) The First Wealth Management Product

Date of subscription 6 January 2021

Name of product

Ping An Bank Corporate Structured Deposits (100% guaranteed-linked LPR) Product (平安銀 行對公結構性存款（100%保本掛鉤LPR）產 品) (TGG21100100)

Parties (1) Shenzhen Laiwan; and (2) Ping An Bank Principal subscription amount RMB25,000,000 Term of investment From 7 January 2021 to 6 July 2021 Type of product and risk rating The product is principal-guaranteed with floating return and is regarded as a medium to low risk product by Ping An Bank Expected annual return rate 3.2% Early termination Shenzhen Laiwan does not have a right of early termination during the investment term

– 2 –

(B) The Second Wealth Management Product

Date of subscription 6 January 2021 Name of product

Ping An Bank Corporate Structured Deposits (100% guaranteed-linked LPR) Product (平安銀 行對公結構性存款（100%保本掛鉤LPR）產 品) (TGG21100101)

Parties (1) Shenzhen Laiwan; and

(2) Ping An Bank

Principal subscription amount RMB25,000,000 Term of investment From 7 January 2021 to 6 July 2021 Type of product and risk rating The product is principal-guaranteed with floating return and is regarded as a medium to low risk product by Ping An Bank Expected annual return rate 3.2% Early termination Shenzhen Laiwan does not have a right of early termination during the investment term

REASONS FOR AND BENEFITS OF THE SUBSCRIPTIONS OF THE WEALTH MANAGEMENT PRODUCTS

The Directors are of the view that (i) the subscriptions of the Wealth Management Products provide the Group with better return than fixed deposits generally offered by commercial banks in the PRC; (ii) the subscriptions of the Wealth Management Products were funded by the Group’s surplus cash reserves, and thus would not affect the Group’s working capital position or operation; and (iii) appropriate wealth management with low risk exposure is conducive to enhancing the utilization of capital and increasing income from idle funds. The subscriptions of the Wealth Management Products were funded by internally generated fund. Accordingly, the Directors consider that the subscriptions of the Wealth Management Products are on normal commercial terms which are fair and reasonable and in the interests of the Company and the Shareholders as a whole.

– 3 –

Prior to making an investment, the Group would ensure that there remains sufficient working capital for the Group’s business needs, operating activities and capital expenditures even after investing in the Wealth Management Product. The subscriptions of the Wealth Management Products were not funded by the proceeds from the Company’s initial public offering. Taking into consideration the nature of the Wealth Management Products and the relatively high credit rating of their underlying assets, the Company considers that the risk level of the subscriptions of the Wealth Management Products are in line with the internal investment policies of the Group. The Group had, in the past, fully recovered the principal and received the expected returns upon the redemption or maturity of similar financial products. The Company will monitor and manage the subscriptions closely and effectively. In accordance with the relevant accounting standards, the Wealth Management Products are accounted for as financial assets at fair value through profit and loss.

IMPLICATION UNDER THE LISTING RULES

As the highest applicable ratio of the aggregated subscriptions of the Wealth Management Products exceeds 5% but is less than 25%, the subscriptions of the Wealth Management Products constitute a discloseable transaction of the Company and are hence subject to the reporting and announcement requirements but are exempted from the circular and Shareholders’ approval requirements under Chapter 14 of the Listing Rules.

INFORMATION ON THE GROUP AND SHENZHEN LAIWAN

The Group is an established mobile game developer and operator in the PRC with special focus on card and board and other casual mobile games.

Shenzhen Laiwan is a limited liability company established in the PRC. It is principally engaged in the development and operation of mobile games.

INFORMATION ON PING AN BANK

Ping An Bank is a licensed bank established under the laws of the PRC and is principally engaged in banking business, international business, financial markets business, and other relevant financial services. To the best of the Directors’ knowledge, information and belief, having made all reasonable enquiry and based on the public information available to the Company, Ping An Bank and its ultimate beneficial owners are third parties independent from each of the Company and its connected persons.

– 4 –

DEFINITIONS

In this announcement, the following expressions shall, unless the context requires otherwise, have the following meaning:

“Board” the board of Directors “Company” Zengame Technology Holding Limited (禪遊科技控 股有限公司), an exempted company incorporated in the Cayman Islands with limited liability and the issued shares of which are listed on the Stock Exchange (stock code: 2660) “Directors” the directors of the Company “First Wealth Management Ping An Bank Corporate Structured Deposits (100% Product” guaranteed-linked LPR) Product (平安銀行對公結構 性存款（100%保本掛鉤LPR）產品) (TGG21100100) offered by Ping An Bank, details of which are set out in this announcement “Group” collectively, the Company and its subsidiaries “Listing Rules” The Rules Governing the Listing of Securities on the Stock Exchange “Ping An Bank” Ping An Bank Co., Ltd. (平安銀行股份有限公司) “PRC” the People’s Republic of China, and for the purpose of this announcement only, excluding Hong Kong, the Macao Special Administrative Region of the People’s Republic of China and Taiwan “RMB” Renminbi, the lawful currency of the PRC “Second Wealth Ping An Bank Corporate Structured Deposits (100% Management Product” guaranteed-linked LPR) Product (平安銀行對公結構 性存款（100%保本掛鉤LPR）產品) (TGG21100101) offered by Ping An Bank, details of which are set out in this announcement

– 5 –

“Shareholder(s)” the shareholder(s) of the Company “Stock Exchange” The Stock Exchange of Hong Kong Limited “subsidiary(ies)” has the meaning ascribed to it under the Listing Rules “Wealth Management Products” collectively, the First Wealth Management Product and the Second Wealth Management Product “Shenzhen Laiwan” Shenzhen Laiwan Technology Co., Ltd.* (深圳市來玩 科技有限公司), a company incorporated in the PRC with limited liability on 20 September, 2014 and an indirect wholly-owned subsidiary of the Company

“%” per cent

By Order of the Board Zengame Technology Holding Limited Ye Sheng Chairman

Hong Kong, 6 January 2021

As at the date of this announcement, the executive Directors are Mr. Ye Sheng and Mr. Yang Min, the nonexecutive Director is Ms. Fu Hao, and the independent non-executive Directors are Mr. Jin Shuhui, Mr. Mao Zhonghua and Mr. Yang Yi.

• For identification purposes only.

– 6 –