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)

On 4 October 2017, EVA Limited (the "Borrower"), a wholly-owned subsidiary of the Company, confirmed its acceptance of the Hang Seng Facility Letter which contained 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").

On 4 October 2017, the Borrower, a wholly-owned subsidiary of the Company, confirmed its acceptance of the facility letter dated 3 February 2017 issued by Hang Seng Bank Limited ("Hang Seng") ("Hang Seng Facility Letter"). Pursuant to the Hang Seng Facility Letter, Hang Seng agrees to make available to the Borrower a new term loan of HK$200,000,000 which is repayable by instalments over 4 years from the date of drawdown. Together with the existing facilities including

(1) other existing term loans with outstanding balances of HK$260,000,000 as at 31 August 2017 which are fully repayable by 2019; (2) an existing revolving loan facility of HK$150,000,000; and (3) unutilised documentary credits and trade facilities of HK$25,000,000, the total facility limit granted by Hang Seng to the Borrower was HK$635,000,000.

Under the Hang Seng Facility Letter, Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua (the "Controlling Shareholders") together shall maintain an aggregate shareholding of not less than 35% of the issued share capital of the Company, and Mr. Zhang Hwo Jie shall remain as the chairman of the board of directors of the Company.

Any breach of the aforesaid obligations will constitute an event of default under the Hang Seng Facility Letter, whereupon Hang Seng will be entitled to declare any of the facilities immediately due and payable and cancel any undrawn balance of the same.

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 37.12% of the issue share capital of the Company. In addition, the Controlling Shareholders also personally hold approximately 1.89% 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, 4 October 2017

As at the date of this announcement, the board of directors of the Company 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.