Channel Micron : TERMINATION OF DISCLOSEABLE TRANSACTION IN RELATION TO THE ACQUISITION OF LAND IN MALAYSIA

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Channel Micron Holdings Company Limited ઠːඤછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with members' limited liability)

(Stock Code: 2115)

TERMINATION OF DISCLOSEABLE TRANSACTION

IN RELATION TO THE ACQUISITION OF LAND IN MALAYSIA

This announcement is made by the Company pursuant to Rule 14.36 of the Listing Rules. Reference is made to the announcements (the ''Announcement'') of Channel Micron Holdings Company Limited (the ''Company'') dated 18 November 2020 and 20 November 2020 relating to the disclosable transaction in relation to the acquisition of a land in Malaysia. Unless otherwise specified, capitalised terms used herein shall have the same meaning as those defined in the Announcements.

Pursuant to the Land Offer, Channel Systems (Asia) and the Vendor undertake to enter into the Sale and Purchase Agreement within 30 Business Days from 18 November 2020 (the ''Deadline''). Nonetheless, Channel Systems (Asia) and the Vendor had continued the negotiation of the terms of the Sale and Purchase Agreement after the Deadline. On 26 February 2021, the Company decided not to proceed with the Land Offer as the parties could not reach an agreement regarding the terms of the Sale and Purchase Agreement. The Company is seeking the refund of the deposit of RM522,860 (equivalent to approximately HK$993,400) paid upon submission of the Land Offer.

As the Group is manufacturing cleanroom wall and ceiling systems and cleanroom equipment in Malaysia at its self-owned Malaysia Factory (as defined in the Prospectus), the Board considers that the termination of the Land Offer will not have any material adverse effect on the operation, business or financial position of the Group. The Company will continue to look for potential acquisitions targets including existing factories and empty plots of industrial land, on which Company will be able to construct a new factory with specifications that meet the Company's expansion in Malaysia as described in the Prospectus.

For illustration purposes in this announcement, the amounts in RM were translated into HK$ at the rate of RM1 = HK$1.90. No representation is made that any amounts in RM or HK$ could have been or could be converted at the above rate or at any other rates or at all.

By Order of the Board

Channel Micron Holdings Company Limited

Ng Yew Sum

Chairman and Executive Director

Hong Kong, 1 March 2021

As at the date of this announcement, the Board comprises: (1) Mr. NG Yew Sum (Chairman), Mr. CHIN Sze Kee, Mr. LAW Eng Hock, Mr. LIM Kai Seng and Ms. YAP Chui Fan as the executive Directors; and (2) Mr. NG Seng Leong, Mr. Martin Giles MANEN and Mr. WU Chun Sing as the independent non-executive Directors.