Birmingham Sports : DECISION OF THE DISCIPLINARY COMMISSION IN CONNECTION WITH BREACHES OF THE CHAMPIONSHIP PROFITABILITY AND SUSTAINABILITY RULES (in PDF)

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.

BIRMINGHAM SPORTS HOLDINGS LIMITED

Ь׼ጫ᜗ԃછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2309)

DECISION OF THE DISCIPLINARY COMMISSION IN CONNECTION WITH BREACHES OF THE CHAMPIONSHIP

PROFITABILITY AND SUSTAINABILITY RULES

This announcement is made by Birmingham Sports Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Company announces that on 22 March 2019 (after trading hours), Birmingham City Football Club (the "Club"), which is operated by the Group, received the decision of the Disciplinary Commission in connection with breaches of the Championship Profitability and Sustainability Rules (the "P&S Rules") of the English Football League ("EFL"). The breaches of the P&S Rules are in relation to the aggregate loss of the Club in three seasons since 2015/16 exceeded upper loss threshold and the loss of the Club in season 2017/18 exceeded the annual threshold. Although the Club performed well in this season, pursuant to the decision of the Disciplinary Commission, 9 points are to be deducted from the points earned in the Championship by the Club in the current season 2018/19. Based on the Championship table as at the date of this announcement, the Club would have 41 points and at the 18th position in the Championship Division following the points deduction.

Below is the statement released by the Club:

"The Club is in receipt of the decision of an independent Disciplinary Commission in relation to the EFL's Profitability and Sustainability Rules, over a three-year period since 2015/16.

The Club has put measures in place to ensure future spending is within acceptable limits and since August we have adhered to an EFL business plan, which imposed transfer restrictions upon us.

When the Club's owners took over, Birmingham City Football Club was in a dire position and investment was critical across many aspects of the business, including the First Team, Women's Team, Academy and the infrastructure.

Then, as now, decisions by the owners and the Board of Directors were taken with the Club's best interests at heart and a determination to halt a cycle of decline and stagnation, with the intention of pushing on to fulfil ours and our fans' ambitions.

This season we have taken significant strides forward on and off the pitch and the owners commitment and intention to drive continued improvement of the Club's fortunes will not diminish.

Under Manager Garry Monk, we have a very tight-knit squad of players who have performed with a sense of belonging, pride and passion. We have no doubt that will continue right to the season's end.

The backing of our fans has been integral, too, and the Club is grateful for their support, their belief, and the connection that has been re-established between all of us who care deeply about Birmingham City Football Club has been pleasing to see.

Birmingham City Football Club notes that it has 14 days in which to appeal the decision of the independent Disciplinary Commission and with that in mind we will be making no further comment."

The Company will continue to support the development of the Club for further improvement in its operation and performance.

Further announcement will be published by the Company as and when appropriate. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Birmingham Sports Holdings Limited

Zhao Wenqing

Chairman

Hong Kong, 24 March 2019

As at the date of this announcement, the Board comprises nine Directors, namely Mr. Zhao Wenqing (Chairman), Mr. Huang Dongfeng (Chief Executive Officer), Ms. Chan Yuk Yee, Mr. Yiu Chun Kong and Mr. Hsiao Charng Geng as Executive Directors; Mr. Sue Ka Lok as Non-executive Director and Mr. To Yan Ming, Edmond, Mr. Pun Chi Ping and Ms. Leung Pik Har, Christine as Independent Non-executive Directors.