Coolpad : ANNOUNCEMENT ON RECENT DEVELOPMENT OF A LAWSUIT RELATED TO THE GROUP

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COOLPAD GROUP LIMITED ბݼණྠϞࠢʮ̡

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2369)

ANNOUNCEMENT ON RECENT DEVELOPMENT

OF A LAWSUIT RELATED TO THE GROUP

This announcement is made by Coolpad Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (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 of the Laws of Hong Kong).

References are made to the announcements of the Company dated 21 August 2017 and 9 January 2018 (the "Announcements"). Unless the context otherwise requires, the capitalised terms used herein shall have the same meanings as defined in the Announcements.

The Company has recently received a civil verdict made from People's Court of Futian District, Shenzhen City, Guangdong Province (the "Court") concerning the financing loan contract dispute where Shanghai Pudong Development Bank Co., Ltd., Shenzhen Branch (the "Loan Bank" or the "Plaintiff") sued against the subsidiaries of the Company, Dongguan Yulong Telecommunication Tech Co., Ltd. (the "Borrower"), Coolpad Software Tech (Shenzhen) Co., Ltd., (the "First Guarantor") and Yulong Computer Telecommunication Scientific (Shenzhen) Co., LTD., (the "Second Guarantor"). The Court made the verdict according to law to approve the application by the Plaintiff to withdraw the Case. All application fee and preservation fee for the Case shall be borne by the Plaintiff. The Group has made up for the shortfall of security deposit in full and on schedule and has settled all its debts with the Loan Bank.

Shareholders and potential investors should exercise caution when dealing in the shares of the Company.

By order of the Board

Coolpad Group Limited

LIU HONG Chairman

Hong Kong, 16 January 2018

As at the date of this announcement, the executive Directors are Mr. Liu Hong, and Mr. Jiang Chao; the independent non-executive Directors are Dr. Huang Dazhan, Mr. Xie Weixin, and Mr. Chan King Chung