China Saite : Announcements and Notices - Inside Information

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CHINA SAITE GROUP COMPANY LIMITED

中 國 賽 特 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 153)

INSIDE INFORMATION

This announcement is made by China Saite Group Company Limited (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2) and Rule 13.19 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules''), and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated 31 January 2018 in relation to the issue of bond (the ''Bond'') in an aggregate principal amount of US$32,000,000 by the Company to several institutional investors (the ''Investors'') pursuant to a note purchase agreement (the ''Announcement''). Unless otherwise defined, terms defined in the Announcement shall have the same meanings when used in this announcement.

On 15 April 2019, a statutory demand (the ''Statutory Demand'') was served on the Company by the Investors as creditors pursuant to the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32 of the Laws of Hong Kong) in respect of an alleged claim for a total amount of US$14,509,268.23 (equivalent to approximately HK$113,742,506.44) (the ''Debt''), being the unpaid principal amount of the Bond together with the accrued interest thereon. The Statutory Demand requested the Company to pay the Debt within three (3) weeks from the date of service of the Statutory Demand, failing which the creditors may present a winding-up petition against the Company.

Taking into account (1) the Company has disputes over the alleged claim amount; and (2) the current financial position of the Company, the directors of the Company are of the view that the Company has sufficient financial resources to settle the Debt within the prescribed time frame. The Company will discuss with the Investors with a view to reaching an agreement on the total claim amount and a settlement of this matter and will keep its Shareholders informed of any significant developments and other matters by way of further announcement(s) as and when appropriate.

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Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

By Order of the Board

China Saite Group Company Limited

Jiang Jianqiang

Chairman

Hong Kong, 15 April 2019

Unless otherwise specified in this announcement, translations of US$ into HK$ are made in this announcement, for illustration only, at the rate of US$1.00 to HK$7.8393. No representation is made that any amounts in US$ or HK$ could have been or could be converted at that rate or at any other rate or at all.

As at the date of this announcement, the executive directors of the Company are Mr. JIANG Jianqiang, Mr. SHAO Xiaoqiang and Mr. XU Fanghua; and the independent non-executive directors are Mr. XU Jiaming, Mr. LUK Chi Shing and Mr. WU Zhongxian.

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