ERATAT LIFESTYLE LIMITED
(Company Registration No: 200705552D)

PROPOSED ISSUE OF NON-CONVERTIBLE BONDS AND WARRANTS

The Board of Directors of Eratat Lifestyle Limited (the "Group" or "Eratat Group") wishes to announce that it is in advanced negotiations with Sun Hung Kai Investment Services Limited, and/or its holding company, subsidiaries, affiliates and other group companies (the "Subscriber") for a proposed issue of (i) non-convertible bonds of up to an aggregate principal amount of RMB250 million, and (ii) up to 82,500,000 warrants, each warrant entitling the warrantholder to subscribe for one (1) new share in the capital of the Company (together, the "Proposed Issue").
The Proposed Issue is conditional upon the following, inter alia:
1) the execution of a definitive subscription agreement between the Company and the Subscriber
("Subscription Agreement"), and
2) all necessary approvals and consents (including any governmental, regulatory and/or corporate approvals and consents), for the Proposed Issue (in particular but without limitation the issue by the Company and the subscription by the Subscriber and/or its nominees of the bonds, including any shareholders' or directors' approval and other regulatory and/or corporate approvals and consents required for the Subscriber) having been obtained in form and substance satisfactory to the Subscriber in its sole and absolute discretion and remaining valid and subsisting as at the date of completion of the Proposed Issue.
The Company is in the midst of finalising with the Subscriber the terms and conditions of the Subscription Agreement in relation to the proposed issue of non-convertible bonds and warrants, including the subscription price. The Company shall make further announcements on the details of the Proposed Issue and the Subscription Agreement, in compliance with the rules of the Listing Manual of the SGX-ST, in due course.
In the meantime, Shareholders are advised to exercise caution in trading their Shares as there is no certainty or assurance as at the date of this announcement that the Proposed Issue will proceed to completion, as the completion is subject to, inter alia, the fulfilment of all the terms and conditions prescribed in the Subscription Agreement. Shareholders are advised to read this announcement and any further announcements by the Company carefully. Shareholders should consult their stockbrokers, solicitors or other professional advisors if they have any doubts about the actions they should take.
Sun Hung Kai Investment Services Limited (Hong Kong Company Registration Number 0028948) was incorporated as a private company with limited liability in Hong Kong on 11 January 1977. It is a principal subsidiary of Sun Hung Kai & Co. Limited, a wealth management company listed on The Stock Exchange of Hong Kong. The principal activities of Sun Hung Kai in Hong Kong include wealth management, brokerage, asset management, consumer finance and investments. The Subscriber was introduced to the Company by its business associates.
By order of the Board
Lin Jiancheng