7Road : LEGAL PROCEEDINGS COMMENCED BY A SUBSIDIARY OF THE COMPANY

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7Road Holdings Limited

第七大道控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 797)

LEGAL PROCEEDINGS COMMENCED BY A SUBSIDIARY

OF THE COMPANY

7Road Holdings Limited (the "Company", together with its subsidiaries, the "Group") was informed by a subsidiary, Shenzhen Qianhai Huanjing Network Technology Co., Ltd. ("Qianhai Huanjing") that Qianhai Huanjing, as the plaintiff, has filed a lawsuit (the "Lawsuit") with the Shenzhen Intermediate People's Court (the "Shenzhen Intermediate

Court") against Guangzhou Zhang Ying Kong Information Technology Company Limited (廣州掌贏控信息科技有限公司) ("Zhang Ying Kong") and Angame Inc. ("Angame"),

as the defendants, in relation to the intellectual property rights contractual dispute over the mobile game version of the online game DDTank (mobile) (彈彈堂(手遊), "DDTank (mobile)"), and has recently received the Notice of Case Acceptance from the Shenzhen Intermediate Court.

DDTank (mobile) is a mobile game developed by Shenzhen 7Road Technology Co., Ltd.* (深圳第七大道科技有限公司, "Shenzhen 7Road"), a wholly-owned subsidiary of the

Company, with complete intellectual property rights. During the period from February 2013 to August 2015, Shenzhen 7Road and Zhang Ying Kong had entered into a collaborative game development agreement (the "Development Agreement") and four supplemental agreements in relation to DDTank (mobile), respectively. In addition, during the period from

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January 2014 to February 2018, Shenzhen 7Road, Qianhai Huanjing, Zhang Ying Kong and Angame had entered several right and obligation transfer agreements and supplemental agreements in relation to the Development Agreement (all the abovementioned agreements, the "Agreements").

Qianhai Huanjing has fulfilled the obligations under the Agreements but Zhang Ying Kong and Angame have failed to pay the share of operation revenue to Qianhai Huanjing, and Zhang Ying Kong and Angame might have concealed the fact about the operation revenue, resulting in substantial economic loss to Qianhai Huanjing. Qianhai Huanjing has filed the Lawsuit with the Shenzhen Intermediate Court, seeking the following requests:

1. to order Zhang Ying Kong and Angame to pay Qianhai Huanjing a share of revenue of RMB724,004.91 and penalty fee for overdue payment of RMB202,133.63;
2. to order Zhang Ying Kong and Angame to pay Qianhai Huanjing the allegedly withheld operation revenue generated from DDTank (mobile) and penalty fee for overdue payment of RMB60,000,000;
3. to confirm the Development Agreement and all its supplemental agreements have been terminated on 31 March 2020;
4. to order Zhang Ying Kong and Angame to bear the legal costs of RMB50,000; and
5. to order Zhang Ying Kong and Angame to bear all the litigation costs of the Lawsuit.

As at the date of this announcement, the Lawsuit has not yet been heard. The Company is of the view that the Lawsuit will not affect the normal business operation of the Group. The Company will make further announcement(s) (if necessary) on any material development of the Lawsuit as and when appropriate.

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

By order of the Board

7Road Holdings Limited

Meng Shuqi

Chairman

Wuxi, the PRC

28 April 2021

As at the date of this announcement, the executive directors of the Company are Mr. Meng Shuqi, Mr. Li Zhengquan and Mr. Yang Cheng; and the independent non-executive directors of the Company are Mr. Xue Jun, Ms. Li Yiqing and Ms. Wang Ying.

*  For identification purposes only

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