Yorkey Optical International Cayman : INSIDE INFORMATION - LITIGATION

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

YORKEY OPTICAL INTERNATIONAL (CAYMAN) LTD.

精 熙 國 際（ 開 曼 ）有 限 公 司 *

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2788)

INSIDE INFORMATION

LITIGATION

This announcement is made by the board (the "Board") of directors (the "Directors") of Yorkey Optical International (Cayman) Ltd. (the "Company" and together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the paragraphs headed "Regulatory and Compliance Risk" on page 31 of the Company's 2020 interim report and the paragraphs headed "Regulatory and Compliance Risk" on page 19 of the final results announcement dated 18 March 2021.

Dongguan Yorkey Optical Machinery Components Ltd.* ("Dongguan Yorkey") recently received a notice of respondent to action (應訴通知書) ([2021] Yue 03 Min Chu No. 1494*) ([2021]粵03

民初1494號) dated 8 April 2021 issued by Guangdong Province Shenzhen Intermediate People's Court (廣東省深圳市中級人民法院) (the "Court") and a statement of claim for Environmental Civil Public Interest Litigation (環境民事公益起訴狀) dated 8 December 2020 prepared by EnviroFriends Institute of Environmental Science and Technology* (北京市朝陽區環友科學技術 研究中心) ("Petitioner") from the Court. Dongguan Yorkey is named as a respondent in a claim

filed by the Petitioner.

Key summary of the the Petitioner's case is as follows:

1. the Petitioner alleged that the discharge of pollutants by Dongguan Yorkey has harmed the environmental public interest ("breach") and, as such, Dongguan Yorkey shall bear the corresponding civil liabilities in accordance with the law;
2. as a result of the said breach, the Petitioner requested the Court to make the following order(s) against Dongguan Yorkey:
3. 1. to stop the harm, i.e. to stop the illegal discharge of pollutants immediately;
   2. to eliminate the harm, i.e. taking effective measures to correct the illegal discharge of pollutants and ensure that the discharge meets the relevant discharge standards;
   3. to make public apology in respect of the said breach on reputable media in the People's Republic of China;

1

1. to compensate the damages made to the environment as a result of the said breach, including the damages to the service functions during the restoration period of the environment (the amount to be determined upon assessment);
2. to bear the inspection fees, appraisal fees, reasonable legal fees and travel expenses in connection with the proceeding (the amount to be determined upon assessment);
3. to bear the costs of the litigation.

According to the notice of respondent to action, the claim made by the Petitioner against Dongguan Yorkey has been accepted by the Court. However, the claim has not yet been heard by the Court and, based on the information available to the Group, the impact of the claim against Dongguan Yorkey on the operation and financial conditions of the Group cannot be estimated at this moment.

Dongguan Yorkey is seeking legal advice on the matter and the Company will make further announcement(s) to update the shareholders and potential investors of the Company as and when appropriate.

By order of the Board

YORKEY OPTICAL INTERNATIONAL (CAYMAN) LTD.

Kurihara Toshihiko

Executive Director and Chief Executive Officer

Hong Kong, 19 April 2021

As at the date of this announcement, the Board comprises two executive Directors, namely, Mr. Lai I-Jen and Mr. Kurihara Toshihiko; one non-executive Director, namely, Ms. Wu Shu-Ping, and three independent non-executive Directors, namely, Mr. Lin Meng-Tsung, Mr. Liu Wei-Li and Mr. Wang Yi-Chi.

• For identification purpose only

2