FDG Kinetic : UPDATE PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE - LAPSE OF THE ACQUISITION PROPOSAL

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FDG Kinetic Limited

五龍動力有限公司

(Receivers and Managers Appointed)

(Incorporated in Bermuda with limited liability)

(Stock Code: 378)

UPDATE PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE

LAPSE OF THE ACQUISITION PROPOSAL

This announcement is made pursuant to Rule 3.7 of the Takeovers Code by FDG Kinetic.

Reference is made to the joint announcements (the "Joint Announcements") of FDG Kinetic and FDG EV dated 16 April 2020, 29 April 2020, 5 May 2020, 3 June 2020, 2 July 2020, 28 July 2020 and 13 August 2020. Terms defined in the Joint Announcements shall have the same meaning herein unless otherwise defined or the context otherwise required.

FDG Kinetic was informed by the joint and several provisional liquidators (the "JPLs") of FDG EV on 14 September 2020 that the Acquisition Proposal has expired despite the previous extension of the Final Closing Date to 21 September 2020 as disclosed in the joint announcement of FDG Kinetic and FDG EV dated 13 August 2020.

Although the Acquisition Proposal did not materialise and the board of directors of the Company is not aware of any other definitive proposal, the JPLs may still dispose of the shares of the Company held by Union Grace and Sinopoly. As such, the Company is still under offer period and in compliance with Rule 3.7 of the Takeovers Code, monthly announcement(s) (this announcement being one of them) setting out the progress of any possible disposal by the JPLs of the shares of the Company will be made until the announcement of a firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with an offer is made. Further announcement(s) will be made by the Company as and when appropriate or required in accordance with the Listing Rules and/or the Takeovers Code (as the case may be).

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CONTINUED SUSPENSION OF TRADING IN THE SHARES

Trading in the shares of FDG Kinetic has been suspended since 9:00 a.m. on 2 July 2020 and will continue to be suspended until further notice. Holders of the shares and other securities of FDG Kinetic and potential investors are advised to exercise caution when dealing in the shares and other securities of FDG Kinetic.

Warning

The possible sale of the shares of the Company by the JPLs may or may not materialise, and even if materialised, may or may not result in a change of control and lead to a general offer under Rule 26.1 of the Takeovers Code. Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company, and if they are in any doubt about their position, they should consult their professional adviser(s).

For and on behalf of

FDG Kinetic Limited

(Receivers and Managers Appointed)

Jaime Che

Chief Executive Officer

Hong Kong, 15 September 2020

As at the date of this announcement, the board of directors of FDG Kinetic comprises Mr. Jaime Che (Chief Executive Officer) and Mr. Cao Zhong (suspended) as executive directors; and Professor Sit Fung Shuen Victor (Chairman), Mr. Hung Chi Yuen Andrew and Mr. Toh Hock Ghim as independent non-executive directors.

The directors of FDG Kinetic jointly and severally accept full responsibility for the accuracy of information contained in this announcement, and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

Website: http://www.fdgkinetic.com

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