China Saite : Announcements and Notices - Voluntary Announcement - Termination of Memorandum of Understanding

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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)

VOLUNTARY ANNOUNCEMENT

TERMINATION OF MEMORANDUM OF UNDERSTANDING

This is a voluntary announcement made by China Saite Group Company Limited (the ''Company'').

Reference is made to the voluntary announcement published by the Company on 27 October 2016 (the ''Announcement'') in relation to the MOU entered into between the Company and the Vendor in respect of the Proposed Acquisitions. Capitalized terms used herein shall have the same meanings as those defined in the Announcement unless defined otherwise.

As disclosed in the Announcement, pursuant to the MOU, among other matters, the Company and the Vendor intended to enter into the Acquisition Agreement in respect of the Proposed Acquisitions before 16 January 2017.

The Board announces that as the Company and the Vendor could not reach an agreement on the major terms and conditions in respect of the Proposed Acquisitions by 16 January 2017, the Company and the Vendor entered into a termination agreement on 19 January 2017, pursuant to which the parties mutually agreed to terminate the MOU and not to proceed with the negotiations on the Proposed Acquisitions with effect from the date thereof. Upon termination of the MOU, the Company will have no further obligation to proceed with the Proposed Acquisitions.

The Board considers that the termination of the MOU has no material adverse impact on the existing business operation and financial position of the Group.

By Order of the Board

China Saite Group Company Limited JIANG Jianqiang

Chairman

Hong Kong, 19 January 2017

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. CHEN Tiegang and Mr. LUK Chi Shing.