Sun King Power Electronics : Announcements and Notices - Clarification Announcement - Major and Connected Transaction - Disposal of 43% Equity Interests in Jiujiang Sunking

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 580)

CLARIFICATION ANNOUNCEMENT -

MAJOR AND CONNECTED TRANSACTION -

DISPOSAL OF 43% EQUITY INTERESTS IN JIUJIANG SUNKING

Reference is made to the announcement of Sun.King Power Electronics Group Limited dated 29 April 2019 (the "Major Transaction Announcement") in relation to the disposal of Jiujiang Sun.King Technology Co., Ltd. Capitalised terms used herein shall have the same meaning as defined in the Major Transaction Announcement.

The Board would like to clarify that since (a) Beijing Hengyaoda is a connected person of the Company at the subsidiary level by virtue of holding 25% equity interests in Jiujiang Sunking; and (b) Beijing Hengyaoda is one of the parties to the Share Transfer Agreement, the Disposal also constitutes a connected transaction for the Company under Chapter 14A of the Listing Rules.

Given that:

(a)the Board has approved the Disposal; and

(b)the independent non-executive Directors have confirmed that the terms of the Disposal are fair and reasonable, the Disposal is on normal commercial terms or better and in the interests of the Company and the Shareholders as a whole,

the Disposal is exempt from circular, independent financial advice and shareholders' approval requirements pursuant to Rule 14A.101 of the Listing Rules.

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However, as a major transaction for the Company under Chapter 14 of the Listing Rules, the Disposal is still subject to reporting, announcement, circular and shareholders' approval requirements under Chapter 14 of the Listing Rules.

By Order of the Board

Sun.King Power Electronics Group Limited

Xiang Jie

Chairman

Hong Kong, 30 April 2019

As at the date of this announcement, the executive Directors are Mr. Xiang Jie, Mr. Gong Renyuan and Mr. Yue Zhoumin; the non-executive Directors are Mr. Yan Fuquan, Mr. Zhu Ming and Ms. Zhang Ling; and the independent non-executive Directors are Mr. Chen Shimin, Mr. Zhang Xuejun, Mr. Leung Ming Shu and Mr. Zhao Hang.

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