EVA Precision Industrial : GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

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EVA Precision Industrial Holdings Limited

(Incorporated with limited liability in the Cayman Islands)

(Stock Code: 838)

GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

On 21 February 2020, EVA Limited (the "Borrower"), a wholly-owned subsidiary of the Company, confirmed its acceptance of the Hang Seng Facility Letter which contained specific performance obligations on the Controlling Shareholders.

This announcement is made by EVA Precision Industrial Holdings Limited (the "Company") in compliance with the disclosure requirements under Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

BANKING FACILITIES PROVIDED BY HANG SENG

On 21 February 2020, the Borrower, a wholly-owned subsidiary of the Company, confirmed its acceptance of the facility letter dated 6 November 2019 issued by Hang Seng Bank Limited ("Hang Seng") ("Hang Seng Facility Letter"). Pursuant to the Hang Seng Facility Letter, Hang Seng agrees to make available to the Borrower a new term loan facility of HK$300,000,000 which is repayable by 7 half-yearly instalments commencing 12 months from the date of drawdown for refinancing on the existing loans. Together with the existing facilities including (1) other existing term loans with outstanding balances of HK$425,000,000 as at 31 January 2020; and (2) an existing revolving loan facility of HK$150,000,000, the total facility limit granted by Hang Seng to the Borrower was HK$875,000,000.

Under the Hang Seng Facility Letter, Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua (the "Controlling Shareholders") together shall maintain not less than 35% of the issued share capital of the Company, and Mr. Zhang Hwo Jie shall remain as the chairman of the board of directors of the Company.

Any breach of the aforesaid obligations will constitute an event of default under the Hang Seng Facility Letter, whereupon Hang Seng will be entitled to declare any of the facilities immediately due and payable and cancel any undrawn balance of the same.

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As at the date of this announcement, Mr. Zhang Hwo Jie and Mr. Zhang Yaohua owns 52.93% and 47.07% respectively of the issued share capital of Prosper Empire Limited, which in turn owns approximately 39.13% of the issued share capital of the Company. In addition, the Controlling Shareholders also personally hold approximately 2.02% of the issued share capital of the Company.

In accordance with the Listing Rules, similar disclosure will also be included in the subsequent interim and annual reports of the Company for so long as the aforesaid specific performance obligations continue to exist.

By order of the Board

EVA Precision Industrial Holdings Limited

Zhang Hwo Jie

Chairman

Hong Kong, 21 February 2020

As at the date of this announcement, the board of directors of the Company comprises three executive directors, being Mr. Zhang Hwo Jie (Chairman), Mr. Zhang Jian Hua (Vice Chairman), Mr. Zhang Yaohua (Chief Executive Officer), and three independent non-executive directors, being Mr. Choy Tak Ho, Mr. Leung Tai Chiu and Mr. Lam Hiu Lo.

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