Lerthai : ANNOUNCEMENT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this 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 in Hong Kong with limited liability)

(Stock Code: 112)

ANNOUNCEMENT

Reference is made to the announcement of the Lerthai Group Limited (the "Company" and together with its subsidiaries, the "Group") dated 21 January 2020 ("Announcement") in relation to, among others, the appointment of receivership over the Charged Shares. Unless the context requires otherwise, capitalized terms used in this announcement shall have the same meanings as those defined in the Announcement.

The board (the "Board") of directors (the "Directors") of the Company announced that it has received a written requisition dated 22 January 2020 from Michael Chan, the Joint and Several Receiver (the "Requisitionist"), purportedly holding of 416,278,110 shares in the capital of the Company, representing 38.8% of the paid up capital of the Company (the "Requisition"), requiring the Company to convene an extraordinary general meeting ("EGM") for the purpose of considering and, if thought fit, passing with or without modification the following resolutions ("Requisition"):

1. "That the number of directors of the Company be increased from 5 to 7." And
2. "That Chan Ho Yin (also known as Michael Chan) and Chi Lai man Jocelyn be appointd as directors of the Company with effect from the date of the EGM."

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Pursuant to Section 566 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), Shareholder(s) representing at least 5 per cent of the total voting rights of all shareholders having a right to vote at general meetings can make a request to call a general meeting

A Shareholder is defined in the Articles 2 of the articles of association of the Company as the duly registered holders from time to time of the shares in the capital of the Company.

The Company has made enquiry with the share registrar of the Company (the "Share Registrar") and confirmed that according to the record of the Share Registrar, as at the date of the Requisition on 22 January 2020, the Requisitionist was not registered as a holder of the shares in the capital of the Company. Pursuant to the legal advice, the Requisition was accordingly invalid, and therefore no EGM will be convened by the Board pursuant to the Requisition.

By order of the Board

Lerthai Group Limited

Yang Longfei

Chairman and Chief Executive Officer

Hong Kong, 11 March 2020

As at the date of this announcement, the executive Directors are Mr. Yang Longfei and Ms. Zhang Yan, the non-executive Director is Mr. Yang Shao Ming, and the independent non-executive Directors are Mr. Wong Hon Kit and Mr. Wong Tat Keung.

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