KuangChi Science : INSIDE INFORMATION - UNILATERAL FORCE SALE OF SHARES HELD BY THE CONTROLLING SHAREHOLDER

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KUANGCHI SCIENCE LIMITED

Έ઼߅ኪϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock Code: 439)

INSIDE INFORMATION UNILATERAL FORCE SALE OF SHARES HELD BY THE CONTROLLING SHAREHOLDER

This announcement is made by KuangChi Science Limited (the "Company" and together with its subsidiaries, the "Group") pursuant to rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and pursuant to the inside information provisions under Part XIVA of the Securities and Futures Ordinance ("SFO") (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of the Company was informed by New Horizon Wireless Technology Limited ("New Horizon"), a controlling shareholder of the Company, ɪऎΈɽబయዽກҳ༟ʕː€ϞࠢΥྫ(Shanghai Everbright Fortune Jinghui Investment Center (Limited Liability Partnership)*) ("SEFJ") has purchased an equity interest in its investee (the "Equity Investment") from an associated company of New Horizon as a result of investment actions, whereas New Horizon, in relation to the Equity Investment, has offered SEFJ 1,067,862,045 shares of the Company held by New Horizon, representing approximately 17.34% of the total issued share capital of the Company as at the date of this announcement, as a credit enhancement of pledge (the "Credit Enhancement"). SEFJ has commenced a unilateral force sale of the shares offered by New Horizon for the Credit Enhancement, (the "Unilateral Force Sale"), and the Credit Enhancement is also the maximum number of shares available for sale by SEFJ. New Horizon will reserve the right to take all necessary and appropriate legal action against SEFJ.

Shareholders of the Company and other investors are advised to exercise caution when dealing in the securities of the Company.

*

For identification purposes only

By order of the Board KuangChi Science Limited

Dr. Liu Ruopeng Chairman and Executive Director

Hong Kong, 22 March 2021

As at the date of this announcement, the board of directors comprises four executive directors, namely Dr. Liu Ruopeng, Dr. Luan Lin, Dr. Zhang Yangyang and Dr. Ji Chunlin; one non-executive director, namely Mr. Li Chiu Ho; and three independent non-executive directors, namely Dr. Wong Kai Kit, Mr. Choi Wing Koon and Dr. Deng Ke.