FDG Electric Vehicles Limited and FDG Kinetic announced that there will be a delay in the release of the 2019/20 Annual Results and despatch of the 2019/20 Annual Report. Capitalised terms used in the Announcement shall have the same meaning in this joint announcement unless otherwise defined or the context otherwise required. After the issue of the Announcement, the FDG EV Board and the FDG Kinetic Board have been using their respective best endeavors to obtain the required information from the relevant PRC subsidiaries to complete the Audit including, among others, instructed lawyers to write to the respective legal representatives and persons in charge of the Uncooperative Subsidiaries demanding for the requisite information; and instructed PRC lawyers to take appropriate steps to remove and replace the legal representatives of the Uncooperative Subsidiaries.

Despite repeated requests, certain legal representatives and senior management of the Uncooperative Subsidiaries of each of FDG EV and FDG Kinetic remained uncooperative with the FDG EV Board and/or the FDG Kinetic Board. As at the date of this joint announcement, instead of providing the required information directly to FDG EV, a total of 11 PRC subsidiaries of FDG EV had purportedly presented their accounting information for the year ended 31 March 2020 to the JPLs; 10 other PRC subsidiaries of FDG EV had purportedly presented their accounting information for the year ended 31 March 2020 to the JPLs and the auditors of FDG EV; and 1 PRC subsidiary of FDG EV had purportedly presented their accounting information for the year ended 31 March 2020 to the auditors of FDG EV. 6 PRC subsidiaries of FDG EV have not provided any requested information for completion of the Audit for the year ended 31 March 2020 to FDG EV and/or FDG Kinetic.

Upon reviewing the limited information obtained, FDG EV, FDG Kinetic and their auditors received no and/or few positive response from the Uncooperative Subsidiaries after making follow-up enquiries. In addition, it is not possible to verify the authenticity, accuracy and completeness of the provided information. Given the above circumstances, coupled with the travel restrictions and the quarantine policies to combat the COVID-19, the auditors of FDG EV and FDG Kinetic are unable to complete the Audit in time for publication on or before 30 June 2020 and therefore the 2019/20 Annual Results will not be published on or before 30 June 2020.