Leoch International Technology : SUPPLEMENTAL INFORMATION TO THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2019

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Leoch International Technology Limited

理 士 國 際 技 術 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 842)

SUPPLEMENTAL INFORMATION TO

THE ANNUAL REPORT FOR THE YEAR ENDED

31 DECEMBER 2019

Reference is made to the annual report for the year ended 31 December 2019 (the "2019 Annual Report") of Leoch International Technology Limited (the "Company", together with its subsidiaries, the "Group") published on 21 April 2020. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those set out in the 2019 Annual Report.

In addition to the information provided in the 2019 Annual Report, the Board would like to provide further information in relation to: (1) the breakdown of "Other expenses" as disclosed on page 95 of the 2019 Annual Report; and (2)(i) the vesting period of outstanding options at the beginning and end of the financial year; and (ii) the vesting period and closing price of the Shares of the Company immediately before the date on which options were granted during the financial year.

(1) Other expenses
	Year ended 31 December
	2019	2018
	RMB'000		RMB'000
Foreign exchange differences, net	6,092	28,001
Loss on disposal of items of property,
plant and equipment, net	22,653	831
Fair value loss from financial
liabilities at fair value through profit
or loss, net	5,457	145
Others	7,515		6,352
	41,717	35,329

1. (i) The vesting period of outstanding options at the beginning and end of the financial year; and (ii) the vesting period and closing price of the shares of the Company immediately before the date on which options were granted during the financial year

Movements in the Company's share options under the Pre-IPO Share Option Scheme as disclosed on page

234 of the 2019 Annual Report are reproduced below with the vesting period included: Number of share options

			At 31
Name or category of	At 1 January	Forfeited during the	December	Date of grant of	Exercise period of	Exercise price of
participant	2019	year	2019	share options	share options	share options	Vesting period

HK$ per share

Director
Ms. Yin Haiyan	150,000	-	150,000	1 June 2010	1 June 2012 to	1.200
					31 May 2022
Other employees	14,103,000	(5,100,000)	9,003,000	1 June 2010	1 June 2012 to	0.200-2.000
in aggregate					31 May 2022

1. a grantee is entitled to exercise 25% of the total number of options granted at anytime during the 10 years after the second anniversary of the date of offer ( the "Offer Date") of the options with the relevant vesting period from the Offer Date up to the date immediately before the second anniversary of the Offer Date;
2. a grantee is entitled to exercise an additional 25% of the total number of Options granted at anytime during the 9 years after the third anniversary of the Offer Date with the relevant vesting period from the Offer Date up to the date immediately before the third anniversary of the Offer Date;
3. a grantee is entitled to exercise a further additional 25% of the total number of Options granted at anytime during the 8 years after the fourth anniversary of the Offer Date with the relevant vesting period from the Offer Date up to the date immediately before the fourth anniversary of the Offer Date; and
4. a grantee is entitled to exercise the remaining 25% of the total number of Options granted at anytime during the 7 years after the fifth anniversary of the Offer Date, with the relevant vesting period from the Offer Date up to the date immediately before the fifth anniversary of the Offer Date.

14,253,000

(5,100,000)

9,153,000

Movements in the Company's share options under the Share Option Scheme as disclosed on pages 243 to 244 of the 2019 Annual Report are reproduced below with the vesting period and closing price before the date of grant of options included:

Number of share options

										Closing price of
										the shares of the
										Company
										immediately
		Granted	Forfeited	Lapsed	At 31			Exercise price		before the date on
Name or category of	At 1 January	during	during	during	December	Date of grant of	Exercise period	of share		which options
participant	2019	year	year	year	2019	share options	of share options	options	Vesting period	were granted
								HK$ per share		HK$ per share
Directors
Mr. Cao Yixiong Alan	300,000	-	-	-	300,000	22 November	1 December 2017	1.020	(i) One-third of the total number of the share	1.020
						2016	to		options granted are exercisable at anytime on or
							21 November		after 1 December 2017.
							2026		(ii) One-third of the total number of the share
									options granted are exercisable at anytime on or

after 1 December 2018.

(iii) The remaining one-third of the total number of the share options granted are exercisable at anytime on or after 1 December 2019.

Mr. Cao Yixiong Alan	-	200,000	-	-	200,000	19 July 2019	1 August 2020 to	1.280	(i) One-third of the total number of the share	0.610
							18 July 2029		options granted are exercisable at any time on or
									after 1 August 2020.
									(ii) One-third of the total number of the share
									options granted are exercisable at any time on or
									after 1 August 2021.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									any time on or after 1 August 2022.
Mr. Liu Yangsheng	300,000	-	-	-	300,000	22 November	1 December 2017	1.020	(i) One-third of the total number of the share	1.020
						2016	to		options granted are exercisable at anytime on or
							21 November		after 1 December 2017.
							2026		(ii) One-third of the total number of the share
									options granted are exercisable at anytime on or
									after 1 December 2018.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									anytime on or after 1 December 2019.
Mr. Lau Chi Kit	300,000	-	-	-	300,000	22 November	1 December 2017	1.020	(i) One-third of the total number of the share	1.020
						2016	to		options granted are exercisable at anytime on or
							21 November		after 1 December 2017.
							2026		(ii) One-third of the total number of the share
									options granted are exercisable at anytime on or
									after 1 December 2018.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									anytime on or after 1 December 2019.
Mr. Lau Chi Kit	-	200,000	-	-	200,000	19 July 2019	1 August 2020 to	1.280	(i) One-third of the total number of the share	0.610
							18 July 2029		options granted are exercisable at any time on or
									after 1 August 2020.
									(ii) One-third of the total number of the share
									options granted are exercisable at any time on or
									after 1 August 2021.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									any time on or after 1 August 2022.
Ms. Yin Haiyan	150,000	-	-	-	150,000	22 November	1 December 2017	1.020	(i) One-third of the total number of the share	1.020
						2016	to		options granted are exercisable at anytime on or
							21 November		after 1 December 2017.
							2026		(ii) One-third of the total number of the share
									options granted are exercisable at anytime on or
									after 1 December 2018.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									anytime on or after 1 December 2019.
Ms. Yin Haiyan	150,000	-	-	-	150,000	4 December	16 December	1.442	(i) One-third of the total number of the share	1.430
						2017	2018 to		options granted are exercisable at anytime on or
							3 December 2027		after 16 December 2018.
									(ii) One-third of the total number of the share
									options granted are exercisable at anytime on or

after 16 December 2019.

(iii) The remaining one-third of the total number of the share options granted are exercisable at anytime on or after 16 December 2020.

Ms. Yin Haiyan	-	900,000	-	-	900,000	19 July 2019	1 August 2020 to	1.280	(i) One-third of the total number of the share 0.610
							18 July 2029		options granted are exercisable at any time on or
									after 1 August 2020.
									(ii) One-third of the total number of the share
									options granted are exercisable at any time on or
									after 1 August 2021.
									(iii) The remaining one-third of the total number
									of the share options granted are exercisable at
									any time on or after 1 August 2022.
	1,200,000	1,300,000 -	-	2,500,000
		Number of share options
										Closing price of
										the listed
		Granted		Lapsed	At 31	Date of grant		Exercise price		securities before
Name or category	At 1 January	during	Forfeited	during	December	of share	Exercise period of	of share		the date of options
of participant	2019	year	during year	year	2019	options	share options	options	Vesting period	granted
								HK$ per share		HK$ per share
Other employees	700,000	-	-	(700,000)	-	21 July 2014 20 August 2015 to	1.860	(i) One-third of the total number of the share options	1.850
in aggregate							20 July 2019		granted are exercisable at anytime on or after 20
									Aug 2015 during the 5 years from the Offer Date.
									(ii) An additional one-third of the total number of
									the share options granted are exercisable at anytime
									on or after 20 Aug 2016 during the Option Period.
									(iii) The remaining one-third of the total number of
									the share options granted are exercisable at anytime
									on or after 20 Aug 2017 during the Option Period.
	2,254,000	-	(237,000)	-	2,017,000	1 April 2015 1 May 2016 to 31	1.018	(i) One-third of the total number of the share options	1.010
							March 2020		granted are exercisable at anytime on or after 1 May
									2016;
									(ii) another one-third of the total number of the share
									options granted are exercisable at anytime on or
									after 1 May 2017; and
									(iii) the remaining one-third of the total number of
									the share options granted are exercisable at anytime
									on or after 1 May 2018.
	1,500,000	-	-	-	1,500,000	26 November	1 December 2016 to	0.810	(i) One-third of the total number of the share options	0.780
						2015	25 November 2020		granted are exercisable at anytime on or after 1
									December 2016; (ii) another one-third of the total
									number of the share options granted are exercisable
									at anytime on or after 1 December 2017; and
									(iii) the remaining one-third of the total number of
									the share options granted are exercisable at anytime
									on or after 1 December 2018.
	6,460,000	-	(100,000)	-	6,360,000 22 November1 December 2017 to	1.020	(i) One-third of the total number of the share options	1.020
						2016	21 November 2026		granted are exercisable at anytime on or after 1
									December 2017. (ii) One-third of the total number of

the share options granted are exercisable at anytime on or after 1 December 2018. (iii) The remaining one-third of the total number of the share options granted are exercisable at anytime on or after 1 December 2019.

1,500,000	-	-	-	1,500,000	16 May 2017 1 June 2018 to	1.822	(i) One-third of the total number of the share options	1.840
						15 May 2027		granted are exercisable at anytime on or after 1 June
								2018.
								(ii) One-third of the total number of the share
								options granted are exercisable at anytime on or
								after 1 June 2019.
								(iii) The remaining one-third of the total number of
								the share options granted are exercisable at anytime
								on or after 1 June 2020.
3,800,000	-	(1,450,000)	-	2,350,000	25 May 2017 1 June 2018 to	1.760	(i) One-third of the total number of the share options	1.690
						24 May 2027		granted are exercisable at anytime on or after 1 June
								2018.
								(ii) One-third of the total number of the share
								options granted are exercisable at anytime on or
								after 1 June 2019.
								(iii) The remaining one-third of the total number of
								the share options granted are exercisable at anytime
								on or after 1 June 2020.
5,950,000	-	(400,000)	-	5,550,000	4 December	16 December 2018	1.442	(i) One-third of the total number of the share options	1.430
					2017	to		granted are exercisable at anytime on or after 16
						3 December 2027		December 2018.
								(ii) One-third of the total number of the share
								options granted are exercisable at anytime on or
								after 16 December 2019.
								(iii) The remaining one-third of the total number of
								the share options granted are exercisable at anytime
								on or after 16 December 2020.
-	23,550,000	(2,100,000)	-	21,450,000	19 July 2019 1 August 2020 to	1.280	(i) One-third of the total number of the share options	0.610
						18 July 2029		granted are exercisable at any time on or after 1
								August 2020.
								(ii) One-third of the total number of the share
								options granted are exercisable at any time on or
								after 1 August 2021.
								(iii) The remaining one-third of the total number of
								the share options granted are exercisable at any time
								on or after 1 August 2022.
22,164,000	23,550,000	(4,287,000)	(700,000)	40,727,000
23,364,000	24,850,000	(4,287,000)	(700,000)	43,227,000

By order of the Board

Leoch International Technology Limited

Mr. DONG Li

Chairman

Hong Kong, 18 August 2020

As at the date of this announcement, the executive directors are Mr. DONG Li and Ms. YIN Haiyan, and the independent non-executive directors are Mr. CAO Yixiong Alan, Mr. LAU Chi Kit and Dr. ZHU Ping.