EVA Precision Industrial : GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

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EVA Precision Industrial Holdings Limited

(Incorporated with limited liability in the Cayman Islands)

(Stock Code: 838)

GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

On 7 November 2019, EVA Limited, a wholly-owned subsidiary of the Company, confirmed the acceptance of the BOC Facility Letter which contains certain specific performance obligations on the Controlling Shareholders.

This announcement is made by EVA Precision Industrial Holdings Limited (the "Company") in compliance with the disclosure requirements under Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

LOAN FACILITY PROVIDED BY BANK OF CHINA (HONG KONG) LIMITED

On 7 November 2019, EVA Limited, a wholly-owned subsidiary of the Company, confirmed the acceptance of a facility letter dated 25 September 2019 issued by Bank of China (Hong Kong) Limited ("BOC") (the "BOC Facility Letter"). Pursuant to the BOC Facility Letter, BOC agrees to make available to EVA Limited an additional long-term instalment loan for an amount up to HK$200,000,000 with a final maturity date being four years from the date of first drawdown. Together with the other existing facilities, which include (i) a long-term instalment loan with outstanding balance of HK$51,500,000 as at 30 September 2019 and final maturity date in June 2020;

1. another long-term instalment loan with outstanding balance of HK$200,000,000 as at 30 September 2019 and final maturity date in June 2023; and (iii) a revolving loan of HK$40,000,000, the total facility limit granted by BOC is HK$491,500,000 (the "BOC Loan Facility").

The following specific performance obligations are imposed on Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua (together, the "Controlling Shareholders") under the BOC Facility Letter:

1. the Controlling Shareholders shall maintain not less than 35% of the issued share capital and shall remain as the largest shareholder of the Company; and

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1. Mr. Zhang Hwo Jie shall remain as the chairman of the board of directors and an executive director of the Company.

A breach of the aforesaid obligations will constitute an event of default under the BOC Facility Letter whereupon all amounts (including principal and interest) due or owing by EVA Limited to BOC shall, without any demand, become immediately due and payable by EVA Limited and BOC shall not be required to make any further advances under the BOC Loan Facility.

As at the date of this announcement, Mr. Zhang Hwo Jie, and Mr. Zhang Yaohua own 52.93% and 47.07% respectively of the issued share capital of Prosper Empire Limited, which in turn owns approximately 39.03% of the issued share capital of the Company. In addition, the Controlling Shareholders also personally hold approximately 2.01% of the issued share capital of the Company.

In accordance with the Listing Rules, similar disclosure will also be included in the subsequent interim and annual reports of the Company for so long as the aforesaid specific performance obligations continue to exist.

By order of the Board

EVA Precision Industrial Holdings Limited

Zhang Hwo Jie

Chairman

Hong Kong, 7 November 2019

As at the date of this announcement, the board of directors comprises three executive directors, being Mr. Zhang Hwo Jie (Chairman), Mr. Zhang Jian Hua (Vice Chairman), Mr. Zhang Yaohua (Chief Executive Officer) and three independent non-executive directors, being Mr. Choy Tak Ho, Mr. Leung Tai Chiu and Mr. Lam Hiu Lo.

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