Huazhang Technology : COMPLETION OF SUBSCRIPTION OF NEW SHARES UNDER SPECIFIC MANDATE

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.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company.

HUAZHANG TECHNOLOGY HOLDING LIMITED

華章科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1673)

COMPLETION OF SUBSCRIPTION OF NEW SHARES UNDER

SPECIFIC MANDATE

Reference is made to (i) the announcement of Huazhang Technology Holding Limited (the "Company") dated 2 March 2021; (ii) the circular of the Company dated 13 April 2021 (the "Circular"); and (iii) the announcement of the Company dated 28 April 2021 in relation to the poll results of the extraordinary general meeting of the Company held on 28 April 2021, in connection with the Subscription of new shares of the Company under Specific Mandate. Unless the context otherwise requires, terms used in this announcement shall have the same meaning as those defined in the Circular.

COMPLETION OF SUBSCRIPTION

The Board is pleased to announce that all of the conditions precedent under the Subscription Agreement have been fulfilled and the Completion has taken place on 10 May 2021, whereby 153,846,153 Subscription Shares were allotted and issued to the Subscriber at the Subscription Price of HK$0.65 per Subscription Share pursuant to the terms of the Subscription Agreement.

EFFECTS OF SHAREHOLDING STRUCTURE OF THE COMPANY

The 153,846,153 Subscription Shares represent (i) approximately 20.99% of the total issued share capital of the Company immediately before the Completion; and (ii) approximately 17.35% of the total issued share capital of the Company as enlarged by the issue of the 153,846,153 Subscription Shares immediately after the Completion.

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Set out below the shareholding structure of the Company (i) immediately before the Completion;

1. immediately after the Completion; and (iii) assuming full conversion of the Bonds after the Completion:

								(ii) Assuming full conversion
	(i) Immediately before the	(ii) Immediately after the		of the Bonds after the
	Completion	Completion		Completion
	Number of	Approximate	Number of	Approximate		Number of	Approximate
Shareholders	Shares	%		Shares	%		Shares	%
Florescent Holdings Limited
(Note 1)	295,422,000		40.31%		295,422,000		33.32%	295,422,000		28.75%
Subscriber and its associates
(Note 2)	7,440,000		1.02%		161,286,153		18.19%	302,131,223		29.40%
Mr. Shi Chenghu (Note 3)	89,452,000		12.20%		89,452,000		10.08%	89,452,000		8.71%
Public Shareholders	340,581,225		46.47%		340,581,225		38.41%	340,581,225		33.14%
Total	732,895,225		100%	886,741,378	100%	1,027,586,448	100%

Notes:

1. Florescent Holdings Limited, a company owned as to 77.90% by Lian Shun Limited, which in turn is beneficially owned as to 61.31% by Mr. Zhu Gen Rong, as to 20.74% by Mr. Wang Ai Yan and as to 17.95% by Mr. Liu Chuan Jiang. Florescent Holdings Limited holds 295,422,000 Shares representing approximately 40.31% of the issued share capital of the Company immediately before the Completion. The executive Directors, Mr. Zhu Gen Rong and Mr. Wang Ai Yan respectively hold 2,044,000 Shares representing approximately 0.28% of the issued share capital of the Company and 368,000 Shares representing approximately 0.05% of the issued share capital of the Company immediately before the Completion.
2. The Subscriber and Creation Best are investment holding companies beneficially owned by Mr. Fang Hui, being an executive Director. Creation Best will hold 140,845,070 new Shares upon full conversion of the Bonds. Immediately before the Completion, Mr. Fang Hui holds 7,440,000 Shares.
3. Mr. Shi Chenghu is a non-executive Director.

By order of the Board

Huazhang Technology Holding Limited

Zhu Gen Rong

Chairman

Hong Kong, 10 May 2021

As at the date of this announcement, the executive directors are Mr. Zhu Gen Rong, Mr. Wang Ai Yan and Mr. Fang Hui, the non-executive Director is Mr. Shi Chenghu and the independent non- executive directors are Mr. Kong Chi Mo, Mr. Heng, Keith Kai Neng and Mr. Yao Yang Yang.

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