Ceneric : LITIGATION UPDATE

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CENERIC (HOLDINGS) LIMITED 新 嶺 域 ( 集 團 ) 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 542)

LITIGATION UPDATE

This announcement is made by Ceneric (Holdings) Limited (the ''Company'') and its subsidiaries (the ''Group'') pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong). Reference is made to an announcement of the Company dated 15 March 2017 (the ''Previous Announcement''). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Previous Announcement.

SUMMARY OF LITIGATION CASES OF THE GROUP

The Group has 2 litigation cases, of which one case relates to a writ of summons with an endorsement of claim (reference number HCA 601/2017) against Regal Honor Group Limited (''Regal Honor''), a hotel operator of the Group which is incorporated in the British Virgin Islands in relation to a claim in the sum of approximately RMB61.3 million due to Born King Investment Holdings Limited (''Born King''), an indirectly wholly owned subsidiary of the Company which is incorporated in the British Virgin Islands (''First Action'') whereas another case relates to a writ of summons with an endorsement of claim (reference number HCA 600/2017) against Maoming City Zhong Yu Hotel Property Management Limited* 茂名市中譽酒店物業管理有限公司 (''Zhong Yu''), a hotel operator of the Group which is incorporated in the PRC in relation to a claim in the sum of approximately RMB14.6 million due to Maoming City Hua Ying Hotel Real Estate Management Company Limited* 茂名市華盈酒店物業管理有限公司 (''Hua Ying''), an indirectly wholly owned subsidiary of the Company which is a Wholly-Owned Foreign Enterprise incorporated in the PRC (''Second Action'').

THE SETTLEMENT AGREEMENT

On 24 January 2018, Zhong Yu and Hua Ying under the Second Action signed and executed a settlement agreement (''Settlement Agreement'') that Zhong Yu is willing to repay the sum of approximately RMB14.6 million by thirty (30) monthly instalments. Under an agreed repayment schedule, the first twenty nine (29) instalments will be repaid in a monthly amount of RMB0.5 million and the remaining sum will be repaid in the last instalment. First instalment of repayment is to be made on 25 January 2018. In the case of default repayment of the whole or any part of the RMB14.6 million, Zhong Yu is required to pay interest on amount default. Interest rate is 10% per annum.

The Company will fulfill its obligation of information disclosure in a timely manner depending on the progress of the litigation.

Certain English translations of Chinese names or words marked with ''*'' in this announcement are included for information purpose only and should not be regarded as the official English translation of such Chinese names or words. If there is any inconsistency between the Chinese names of the PRC entities mentioned in this announcement and their English translations, the Chinese names shall prevail.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board Ceneric (Holdings) Limited

YANG Lijun

Chairman

Hong Kong, 24 January 2018

As at the date of this announcement, the Board comprises Mr. YANG Lijun, Mr. WAN Jianjun and Mr. WONG Kui Shing, Danny being the Executive Directors; and Ms. CHAN Hoi Ling, Ms. SO Wai Lam and Mr. SUNG Yat Chun being the Independent Non-executive Directors.