China Information Technology Development : FURTHER INFORMATION ON PLACING OF NEW SHARES UNDER SPE...

E160110042Ann.indd

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.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities in China Information Technology Development Limited.

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 8178)

FURTHER INFORMATION ON PLACING OF NEW SHARES UNDER SPECIFIC MANDATE

Reference is made to the announcement of China Information Technology Development Limited (the "Company") dated 25 November 2015 in relation to the major acquisition, the announcement of the Company dated 8 December 2015 in relation to the placing of new shares under specific mandate (collectively, the "Announcements") and the delay announcement of the Company dated 31 December 2015. Capitalised terms used in this announcement shall have the same meaning as ascribed to them in the Announcements unless the context otherwise requires.

USE OF PROCEEDS

As disclosed in the Announcements that assuming all the Placing Shares were allotted and issued, the gross proceeds from the Placing will amount to approximately HK$238 million and the net proceeds from the Placing after deducting the placing fee and other related expenses payable by the Company will amount to approximately HK$230 million.

It is expected that (i) approximately HK$161 million, representing approximately 70% of the net proceeds from the Placing, will be used for funding any future business development and/or potential investment opportunities including but not limited to those as set out in the paragraph headed "Reasons for and Benefits in the Placing"; and (ii) the remaining portion of approximately HK$69 million, representing approximately 30% of the net proceeds from the Placing, will be used by the Group as its general working capital.

The Board wishes to provide a detailed breakdown of the intended use of net proceeds from the Placing to the Shareholders as follow:

1. approximately HK$73 million, representing approximately 31.7% of the net proceeds from the Placing would be used for the refurbishment of and operation of the business in the PRC Properties such as for the refurbishment of the PRC Properties, purchase of office furniture for the PRC Properties, repayment of bank loan and interest, and payment of operating expenses incurred in the PRC Properties in the coming 12 months;

   
   

2. approximately HK$69 million, representing approximately 30% of the net proceeds from the Placing would be reserved for the ACM and MRS projects which are both IT-related projects as disclosed in the prospectus of the Company dated 13 February 2014;

   
   

3. approximately HK$19 million, representing approximately 8.3% of the net proceeds from the Placing would be reserved for developing the future business of the Group, including but not limited to, the joint venture with Nihon Unisys, Ltd. as disclosed in the announcement of the Company dated 13 November 2015; and

   
   

4. approximately HK$69 million, representing approximately 30% of the net proceeds from the Placing would be applied as general working capital of the Group to support the annual expenditure scale of the Group.

Save as disclosed above, the contents of the Announcements remain unchanged.

Completion of the Placing is subject to the satisfaction of the conditions precedent in the Placing Agreement. As the Placing may or may not proceed, Shareholders and potential investors are advised to exercise caution when dealing in the Shares.

By order of the Board

China Information Technology Development Limited Tse Chi Wai

Executive Director and Company Secretary

Hong Kong, 8 January 2016

As at the date of this announcement, the Board comprises Mr. Wong Kui Shing, Danny (Chairman and Chief Executive Officer), Mr. Tse Chi Wai, Ms. Wu Jingjing, Mr. Takashi Togo and Mr. Wong Chi Yung as executive Directors; Mr. Hung Hing Man, Mr. May Tai Keung, Nicholas and Dr. Chen Shengrong as independent non-executive Directors.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will be available on the Company's websitehttp://www.chinainfotech.com.hk and will remain on the "Latest Company Announcement" page on the GEM website at http://www.hkgem.com for at least 7 days from the date of its posting.