EVA Precision Industrial : GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

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EVA Precision Industrial Holdings Limited

(Incorporated with limited liability in the Cayman Islands)

(Stock Code: 838)

GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

On 18 January 2018, EVA Limited (the "Borrower"), a wholly-owned subsidiary of the Company, confirmed its acceptance of the HSBC Facility Letter which contains specific performance obligations on the Controlling Shareholders.

This announcement is made by EVA Precision Industrial Holdings Limited (the "Company") in compliance with the disclosure requirements under Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

BANKING FACILITY PROVIDED BY THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

On 18 January 2018, the Borrower, a wholly-owned subsidiary of the Company, confirmed its acceptance of the facility letter issued by The Hongkong and Shanghai Banking Corporation Limited ("HSBC") ("HSBC Facility Letter"). Pursuant to the HSBC Facility Letter, HSBC agrees to make available to the Borrower an instalment loan facility for an amount up to HK$150,000,000 with a final maturity being four years after drawdown. Together with the other existing facilities, which include (i) another instalment loan with outstanding balance of HK$20,000,000 as at 31 December 2017 and final repayment date in April 2018; (ii) a revolving loan of HK$200,000,000; and (iii) a trade facility of HK$100,000,000 (of which approximately HK$6,712,000 was utilised as at 31 December 2017 for documentary credit in respect of import of machinery), the total facility limit granted by HSBC is HK$470,000,000 (the "HSBC Banking Facility").

The following specific performance obligations are imposed on Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua (together the "Controlling Shareholders") under the HSBC Facility Letter:

(1) the Controlling Shareholders shall maintain not less than 35% of the issued share capital of the Company; and

(2) Mr. Zhang Hwo Jie shall remain as the chairman of the board of directors of the Company.

A breach of the aforesaid obligations will constitute an event of default under the HSBC Facility Letter, whereupon HSBC may at any time by notice to the Borrower declare that:

• (1) the obligation of HSBC to make available the facilities under the HSBC Facility Letter shall be terminated; and/or

• (2) if any advance is outstanding, all the sums payable under the HSBC Banking Facility shall immediately become due and payable.

As at the date of this announcement, Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua owns 38%, 29% and 33% respectively of the issued share capital of Prosper Empire Limited, which in turn owns approximately 37.45% of the issued share capital of the Company. In addition, the Controlling Shareholders also hold personally approximately 1.91% of the issued share capital of the Company.

In accordance with the Listing Rules, similar disclosure will also be included in the subsequent interim and annual reports of the Company for so long as the aforesaid specific performance obligations continue to exist.

By order of the Board

EVA Precision Industrial Holdings Limited

Zhang Hwo Jie

Chairman

Hong Kong, 18 January 2018

As at the date of this announcement, the Board comprises three executive directors, being Mr. Zhang Hwo Jie (Chairman), Mr. Zhang Jian Hua (Vice Chairman), Mr. Zhang Yaohua (Chief Executive Officer) and three independent non-executive directors, being Mr. Choy Tak Ho, Mr. Leung Tai Chiu and Mr. Lam Hiu Lo.