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

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

(Incorporated with limited liability in the Cayman Islands)

(Stock Code: 838)

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").

Reference is made to the announcement of the Company dated 7 May 2015 ("2015 Announcement") pursuant to Rule 13.18 of the Listing Rules in relation to the specific performance obligations ("2015 Obligations") imposed on Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua ("Controlling Shareholders") for the banking facilities granted by The Hongkong and Shanghai Banking Corporation Limited ("HSBC"). As disclosed in the 2015 Announcement, the 2015 Obligations are:

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

2. Mr. Zhang Hwo Jie shall remain as the chairman of the board of directors of the Company.

The Company announces that on 2 February 2017, EVA Limited ("Borrower"), a wholly-owned subsidiary of the Company, confirmed its acceptance of a facility letter issued by the HSBC ("Renewed Facility Letter"). Pursuant to the Renewed Facility Letter, HSBC agrees to renew, among others, a trade facility of HK$100,000,000. Under the Renewed Facility Letter, the 2015 Obligations shall also apply to the afore-mentioned trade facility, and all other liabilities and obligations owing by the Borrower to HSBC from time to time shall continue to be subject to the 2015 Obligations.

As at 31 December 2016, the Borrower had outstanding loan balances of HK$293,000,000 with HSBC, which included revolving loan and long-term instalment loans. Together with the afore- mentioned trade facility, the total facility limit granted by HSBC amounted to HK$393,000,000.

A breach of the 2015 Obligations will constitute an event of default whereupon HSBC may at any time by notice to the Borrower declare that:

1. the obligation of HSBC to make its bank facilities available shall be terminated; and/or;

2. if any advance is outstanding, all the sums payable to HSBC shall immediately become due and payable.

As at the date of this announcement, Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua owns 38%, 29% and 33% respectively of the issued share capital of Prosper Empire Limited, which in turn owns approximately 36.46% of the issued share capital of the Company. In addition, the Controlling Shareholders also personally hold approximately 1.75% 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

Chairman

Hong Kong, 2 February 2017

As at the date of this announcement, the Board 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.