Birmingham Sports : CHANGE IN USE OF PROCEEDS

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.

BIRMINGHAM SPORTS HOLDINGS LIMITED

伯 明 翰 體 育 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2309)

CHANGE IN USE OF PROCEEDS

References are made to the circular of Birmingham Sports Holdings Limited (the "Company", together with its subsidiaries, the "Group") dated 17 November 2020 (the "Circular") in relation to the disposal of interests in subsidiaries (the "Disposal") and the interim report of the Company for the six months ended 31 December 2020 (the "Interim Report"). Unless otherwise defined herein, terms in this announcement shall have the same meaning as defined in the Circular and the Interim Report.

CHANGE IN USE OF PROCEEDS

The utilisation of the net proceeds and the proposed change in use of proceeds from the Disposal are summarised as follows:

								Expected timeline
					Reallocation		for fully utilising
			Unutilised	in use of	New allocation	the remaining
			amount as at	unutilised	for unutilised	proceeds (taking
	Planned use		31 December	amount of	amount of net	into account of
Purposes	of proceeds	2020	net proceeds	proceeds	the new allocation)
	HK$'million		HK$'million	HK$'million	HK$'million
Repayment of debts	31.7		-	10.5	10.5	By 31 May 2021
General working capital	10.5		-	-	-
Future investment	10.5	10.5	(10.5)	-
Total	52.7	10.5	-	10.5

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REASONS FOR CHANGE IN USE OF PROCEEDS

As mentioned in the Circular under the heading "Reasons for and Benefits of the Disposal and Use of Proceeds", the portion of the net proceeds originally intended for future investment will be used to repay the debts of the Group if no suitable investment opportunities can be identified. Due to the COVID-19 pandemic around the world, the management believes that it is difficult to assess how long the COVID-19 pandemic will last. Many countries or regions have either retained, reimposed or extended the quarantine measures, travel restriction and safe distancing measures to contain the COVID-19 pandemic, casting uncertainties on the investment environment. In view of this, the management intends to reallocate the Group's original plan on the use of the net proceeds for future investment to repayment of debts so as to lower the finance costs of the Group and to enhance the financial condition of the Group.

The Board considers that the aforesaid change in the use of net proceeds allows the Company to deploy its financial resources more effectively and is fair and reasonable and in the best interest of the Company and Shareholders as a whole, and will not have any material adverse effect on the existing business and operations of the Group.

Save as disclosed in this announcement, there are no other changes on the use of net proceeds of the Disposal.

By Order of the Board

Birmingham Sports Holdings Limited

Zhao Wenqing

Chairman

Hong Kong, 12 May 2021

As at the date of this announcement, the Board comprises nine Directors, namely Mr. Zhao Wenqing (Chairman), Mr. Huang Dongfeng (Chief Executive Officer), Mr. Yiu Chun Kong, Mr. Hsiao Charng Geng and Dr. Guo Honglin as Executive Directors; Mr. Sue Ka Lok as Non-executive Director; and Mr. Pun Chi Ping, Ms. Leung Pik Har, Christine and Mr. Yeung Chi Tat as Independent Non-executive Directors.

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