Wisdom Sports : VOLUNTARY ANNOUNCEMENT ON ARBITRATION AND LITIGATION INVOLVING SUBSIDIARIES

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the content 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.

WISDOM SPORTS GROUP

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1661)

VOLUNTARY ANNOUNCEMENT ON ARBITRATION AND

LITIGATION INVOLVING SUBSIDIARIES

This announcement is made by Wisdom Sports Group (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep its shareholders (the "Shareholders") and potential investors informed of the latest business development of the Group.

Reference is made to the announcements of the Company dated 5 July 2018 and 7 December 2018 (collectively the "Announcements"). Unless otherwise stated, capitalized terms used herein shall denote the same meanings as those defined in the Announcements. The board of directors of the Company (the "Board") wish to inform the Shareholders and potential investors that several

- 1 -

subsidiaries of the Company recently commenced and/or initiated legal proceedings against the Arena Company, three of which were arbitration proceedings and two of which were litigation proceedings (collectively, the "Proceedings"). Further details of the Proceedings are set out below:-

				Amount of claim
				(including corresponding	Progress of
	Arbitration		Background information	interests and legal/arbitration	arbitration/
Plaintiff/applicant	or litigation	Venue	of arbitration/litigation	costs)	litigation

Wisdom Sports Entertainment	Arbitration	Beijing Arbitration	Dispute in relation to a loan of
(Zhejiang) Co., Ltd.* (智美		Commission	RMB3.0 million (note)
體育文化（浙江）有限公司)
(formerly known as
Wisdom Events Operation
and Management (Zhejiang)
Co., Ltd.* (智美賽事營運
管理（浙江）有限公司))
Auto Culture Group Holdings	Arbitration	Beijing Arbitration	Dispute in relation to a loan of
Limited (suing on behalf of		Commission	RMB15.0 million with
Wisdom Sports			annual interest rate of 4%
Development (Shenzhen)			(note)
Co., Ltd.* (智美體育發展
（深圳）有限公司), which
was de-registered on 5
November 2019)
Beijing Wisdom Sports Industry	Arbitration	Beijing Arbitration	Dispute in relation to a payment
Co., Ltd.* (北京智美體育		Commission	on behalf of approximately
產業有限公司)			RMB10.4 million (note)
Shenzhen Wisdom Sports	Litigation	Shenzhen Futian People's	Contractual dispute in relation to
Industry Co., Ltd.* (深圳		Court* (深圳市福田區	capital increase of
智美體育產業有限公司)		人民法院)	approximately RMB40.0
			million in the Arena
			Company
Jiangxi Wisdom Sports Culture	Litigation	Jiangxi Fuzhou Linchuan	Contractual dispute involving
Co., Ltd.* (江西維世德		People's Court* (江西	purchase of advertisement
體育文化有限公司)		撫州市臨川區人民	services for RMB7.0 million
		法院)

Return of loan of RMB3.0	Commenced
million and arbitration	proceedings
costs

Return of loan of RMB15.0	Commenced
million with interests and	proceedings
arbitration costs

Return of payment on behalf of	Commenced
approximately RMB10.4	proceedings
million and arbitration
costs
Return of investment	Commenced
prepayment of RMB1.74	proceedings
million and legal costs
Return of advertisement	Initiated
services prepayment of	proceedings
RMB6.4 million and legal
costs

Note: The respective loans and the payment on behalf were included and formed part of Shenzhen Wisdom's investment in the Arena Company

- 2 -

Currently, all business operations of the Company remain normal. The Company will take all appropriate measures to protect the rights and interests of the Company. Further announcement(s) will be made regarding any significant developments in relation to the Proceedings as and when appropriate.

By Order of the Board

Wisdom Sports Group

Ren Wen

Chairlady and Executive Director

Hong Kong, 11 February 2020

As at the date of this announcement, the executive directors of the Company are Ms. Ren Wen, Mr. Sheng Jie, Mr. Song Hongfei and Ms. Hao Bin; and the independent non-executive directors of the Company are Mr. Chen Zhijian, Mr. Ip Kwok On Sammy and Mr. Jin Guoqiang.

• For identification purposes only

- 3 -