China All Access : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO FURTHER DELAY IN PAYMENT DATE OF FINAL DIVIDEND

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.

中國全通(控股)有限公司

CHINA ALL ACCESS (HOLDINGS) LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 633)

SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO

FURTHER DELAY IN PAYMENT DATE OF FINAL DIVIDEND

Reference is made to the announcements (the "Announcements") of the Company dated 11 April 2019 (the "April Announcement"), 28 May 2019 (the "May Announcement") and 29 November 2019 in relation to the further delay in payment date of final dividend payment for the year ended 31 December 2017. Unless otherwise defined, capitalized terms used herein shall have the same meaning as defined in the Announcements.

The Company would like to provide additional information in respect of the further delay in payment date of the Final Dividend.

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UPDATE ON UTILISATION OF PROCEEDS FROM FUND RAISING

ACTIVIATIES OF THE GROUP IN 2019

The following is the equity fund raising activity conducted by the Group in 2019:

			Proposed use	Actual use of
Date of	Fund raising		of the net	the net
announcement	activity	Net proceeds	proceeds	proceeds
20 March 2019	Placing of	Approximately	For future	Fully utilised
	30,182,000 new	HK$14.0	business	for general
	shares under	million	development	working capital
	general		and general	of the Group
	mandate		working capital
			of the Group
30 May 2019	Subscription of	Approximately	For general	Fully utilised
	78,000,000 new	HK$37.1	working capital	for the general
	shares under	million	of the Group	working capital
	general			of the Group
	mandate
25 October	Subscription of	Approximately	For investment	Unutilised as at
2019	30,000,000 new	HK$8.3 million	of new	the date of this
	shares under		projects.	announcement
	general
	mandate (the
	"October
	Subscription")

It has been the mutual understanding between the Company and the subscriber under the October Subscription that the net proceeds from the October Subscription should be used by the Group for investment of new projects. As such, the Group does not have any present intention to apply such unutilized net proceeds to finance the payment of the Final Dividend.

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REASONS FOR FURTHER DELAY IN PAYMENT DATE OF FINAL

DIVIDEND

As a result of the following unforeseen events since the May Announcement, the Company has to further delay the payment of the Final Dividend in order to maintain sufficient level of cashflow for its daily operation:

1. as disclosed in the announcement of the Company dated 1 July 2019, on 27 June 2019, the Company as first defendant received a writ of summons issued in the Court of First Instance of the High Court of Hong Kong by Prosper Talent Limited as a plaintiff in relation to US$95,383,187.40 due and outstanding under a note purchase agreement. Such negative news had a devastating impact on the Group's effort in implementing its cashflow improvement plan referred to in the April Announcement as it has:
2. 1. weakened the bargaining power of the Group on tightening the time for collection of trade receivables from customers;
   2. weakened the bargaining power of the Group on negotiating for a longer credit periods from suppliers; and
   3. triggered the credit tightening mechanism of the existing banking facilities taken out by Shenzhen Lead.

As a result, the Group had experienced unexpected constraints of operating cashflow.

1. reference is made to the announcements of the Company dated 11 July 2019 and 8 November 2019 in relation to the possible subscription under Rule 3.2 of the Takeovers Code. The negotiation in respect of the possible subscription is still in progress and no formal or legally binding agreement for the possible subscription has been entered into between the Proposed Subscriber and the Company as at the date of this announcement.
2. as disclosed in the interim results announcement of the Company dated 30 August 2019, the Group had recorded a net loss of approximately RMB514,214,000 and a negative net operating cashflow of approximately RMB36.7 million for the six months ended 30 June 2019. The unfavourable operating results continued in the second half of 2019 with no obvious sign of turning around.

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In order to further improve the liquidity of the Company so as to finance the payment of the Final Dividend, since the May Announcement and up to the date of this announcement, the Company had been under active negotiation with a potential investor in relation to the possible issuance of convertible bonds. Such negotiation is still in progress as at the date of this announcement.

Based on the information currently available, the Company does not expect there will be any further postponement of the payment of the Final Dividend.

By order of the Board

China All Access (Holdings) Limited

Shao Kwok Keung

Chief Executive Officer

Hong Kong, 9 December 2019

As at the date of this announcement, the executive Directors are Mr. Chan Yuen Ming and Mr. Shao Kwok Keung; the non-executive Director is Mr. Bao Tiejun; and the independent non-executive Directors are Mr. Wong Che Man Eddy, Mr. Lam Kin Hung Patrick and Mr. Tam Sui Kwan.

* For identification purpose only

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