Champion Technology : UNUSUAL PRICE MOVEMENT AND CLARIFICATION ANNOUNCEMENT IN RELATION TO NEWSPAPER ARTICLE

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.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company.

CHAMPION TECHNOLOGY HOLDINGS LIMITED

冠 軍 科 技 集 團 有 限 公 司

(Continued in Bermuda with limited liability)

(Stock Code: 92)

UNUSUAL PRICE MOVEMENT

AND

CLARIFICATION ANNOUNCEMENT IN RELATION TO NEWSPAPER ARTICLE

This announcement is made by Champion Technology Holdings Limited (the ''Company'', and together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities (the ''Listing Rules'') on The Stock Exchange of Hong Kong Limited (the ''Stock Exchange'') and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the ''Board'') of directors (the ''Directors'') of the Company has noted the recent decrease in the price of the shares of the Company. Having made such enquiry with respect to the Company as is reasonable in the circumstances, the Board confirms that, save as disclosed below, it is not aware of any reasons for these price movements or of any information which must be announced to avoid a false market in the Company's shares or of any inside information which needs to be disclosed under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Board noted that a newspaper article published on 30 April 2021 stated that the Company had been discussing with certain securities companies for a proposed rights issue. The Board wishes to inform its shareholders and potential investors that the Company intends to conduct equity fund raising exercises, including rights issue, in order to substantially repay its indebtedness which amounts to approximately HK$230 million as at the date of this announcement and to enhance its working capital to expand the renewable energy business as well as the Technology and Oil Trading business of the Group. Preliminary discussions have taken place between the management of the Company and certain potential underwriters to ascertain market interest of the proposed rights issue. Based on the responses received so far, the Company may need to issue the rights shares below the current par value of the Company's shares. Since the shares of the Company have been recently trading at prices close to its par value but the Company shall not issue any shares at a price below par value pursuant to its bye-laws, the Company may need to implement a capital reduction to reduce the par value of its shares before proceeding with the proposed rights issue or any other fund raising exercise.

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As at the date of this announcement, no agreement has been entered into in relation to the proposed rights issue and no concrete timetable has been fixed in relation to the proposed capital reduction.

The Board is fully aware that should the Company proceed with the capital reduction and/or a highly dilutive rights issue, such exercises shall be subject to the approval of its shareholders and the Stock Exchange. The Company will make further announcement(s) in this regard in accordance with the Listing Rules as and when appropriate.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

CHAMPION TECHNOLOGY HOLDINGS LIMITED

Chan Wai

Company Secretary

Hong Kong, 2 May 2021

As at the date of this announcement, the executive Director is Ms. Wong Man Winny; the non-executive Directors are Mr. Liu Ka Lim and Ms. To Yin Fong Cecilica; and the independent non-executive Directors are Mr. Leung Man Fai, Mr. Chan Yik Hei and Mr. Wong Yuk Man Edmand.

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