Boyaa Interactive International : Announcements and Notices - Inside Information

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博雅互動國際有限公司

(Incorporated in the Cayman Islands with limited liability)

This announcement is made by the board of directors (the "Board") of Boyaa Interactive International Limited (the "Company", together with its subsidiaries, collectively referred to as the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Shenzhen Dong Fang Bo Ya Technology Co., Ltd. (深圳市東方博雅科技有限公司) ("Boyaa Shenzhen"), a company regarded as indirect subsidiary of the Company by virtue of contractual arrangement, has received an indictment from the judicial authority in the People's Republic of China (the "PRC") as a defendant due to its alleged act of bribery. Mr. Zhang Wei, the Chairman of the Board, as the legal representative of Boyaa Shenzhen, has become a co-defendant of the case. The case is relevant to the announcements issued by the Company on 11 May 2016 and 30 May 2016 in respect of the investigation by the judicial authority in the PRC.

The PRC lawyer engaged by the Group in respect of the case considers that the prosecution evidence is insufficient to support a conviction of Boyaa Shenzhen under the case. The PRC lawyer will plead not guilty and defend the case on behalf of Boyaa Shenzhen. The severest punishment on Boyaa Shenzhen upon conviction would be a fine as administrative punishment (the amount of which is not expected to have material financial impact), and the business license and the qualification of operation would not be affected. The maximum penalty on the legal representative is up to five years imprisonment, but the PRC lawyer considers that the possibility of being imposed the maximum penalty is minimal. The Company has been well prepared to ensure that, regardless of any possible outcome, the normal operation of the Group would not be affected. The Board considers that the case will not cause any adverse impact to the business, operation and financial status of Boyaa Shenzhen and the Group. As of the date of this announcement, the operations of Boyaa Shenzhen and the Group remain normal. The hearing of the case is expected to take place within the coming three months and judgement will be announced. The Company will keep close communication with the PRC lawyer on the development of the case and evaluate any influence to the Group from time to time. Relevant update will be disclosed in due course in accordance with the regulatory requirements.

By Order of the Board

Chairman and Executive Director

Hong Kong, 14 July 2017

As at the date of this announcement, the executive Directors are Mr. ZHANG Wei and Mr. DAI Zhikang; the independent non-executive Directors are Mr. CHEUNG Ngai Lam, Mr. CHOI Hon Keung Simon and Mr. YOU Caizhen.