Capinfo : INSIDE INFORMATION PROGRESS OF LEGAL PROCEEDINGS 2019-10-25

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CAPINFO COMPANY LIMITED*

首都信息發展股份有限公司

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1075)

INSIDE INFORMATION

PROGRESS OF LEGAL PROCEEDINGS

This announcement is made by Capinfo Company Limited* (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

PROGRESS OF LEGAL PROCEEDINGS

The Company recently received several summonses and notices of participation to action issued by the People's Court of Siming District, Xiamen City, Fujian Province (福建省廈門市思明區人民法 院) and People's Court of Huli District, Xiamen City, Fujian Province (福建省廈門市湖里區人民法 院) (collectively, the "People's Court"), respectively, stating that several former natural person shareholders of Xiamen Rito Info Technology Co. Ltd* (廈門融通信息技術有限責任公司) ("Rito Company") (collectively, the "Parties") instituted proceedings to the People's Count individually, requesting the People's Court to order (i) the Share Transfer Agreement entered into between the Company and former shareholders of Rito Company on 21 July 2014 continued to be performed; (ii) the Company to pay the Parties the consideration for the share transfer of approximately RMB22,201,510.82 in total; and (iii) interest accrued thereon for the period of late payment, which should be calculated based on the lending interest rate as published by the People's Bank of China prevailing over the same period and same type commencing from 1 September 2017 (50% of the aforementioned consideration for the share transfer), 1 September 2018 (50% of the aforementioned consideration for the share transfer), respectively, and up to the date of full settlement, and the case acceptance fee (the "Legal Proceedings").

* For identification purpose only

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IMPACT OF THE LEGAL PROCEEDINGS ON THE GROUP

The board of directors of the Company considers that this Proceeding is the same as the Proceeding mentioned in the announcement in relation to the Legal Proceedings of the Company dated 19 July 2019. Currently, it is not practical to assess the potential impact of the proceedings on the Group. It is expected that the Legal Proceedings will not affect the normal operation of the Group. A legal proceeding had been instituted by the Company to, and was accepted by, the People's Court of the People's Republic of China, regarding the request for the revocation of the Share Transfer Agreement entered into between the Company and the former shareholders of Xiamen Ritoinfo on 21 July 2014. Please refer to the announcement of the Company dated 23 August 2019. The Company will actively respond to the action and make further announcement(s) to keep its shareholders and investors informed of any significant development of the Legal Proceedings as and when appropriate.

Meanwhile, shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

CAPINFO COMPANY LIMITED*

Lin Yankun

Chairman

Beijing, the People's Republic of China, 25 October 2019

As of the date of this announcement, the executive directors of the Company are Ms. Lin Yankun, Mr. Yu Donghui and Mr. Zong Zhaoxing; the non-executive directors of the Company are Mr. Zhou Weihua, Mr. Shan Yuhu, Mr. Cao Huaizhi, Mr. Ma Linxiang and Mr. Feng Jianxun; and the independent non-executive directors of the Company are Mr. Gong Zhiqiang, Mr. Cheung, Wai Hung Boswell, Mr. Li He and Mr. Yang Xiaohui.

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